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ndia’s Union Budget for the fiscal year 2025-26, presented by Finance Minister Nirmala Sitharaman on February 1, 2025, introduces several key measures aimed at stimulating economic growth, supporting the middle class, and promoting inclusive development. Personal Income Tax Reforms:

• Tax Relief for Middle Class: he budget proposes a reduction in personal income tax rates to enhance middle-class spending power. Citizens earning up to ₹1.28 million annually will be exempt from taxes, with reduced rates for higher income brackets. This initiative is expected to cost the government ₹1 trillion in revenue.citeturn0news12 Fiscal Deficit and Borrowing:

• Fiscal Consolidation: espite the tax cuts, the government aims to narrow the fiscal deficit to 4.4% of GDP from 4.8% in the previous year. To finance this, it plans to borrow ₹14.82 trillion.citeturn0news12 Support for Key Sectors:

• Agriculture: he budget focuses on boosting agricultural productivity, particularly for high-yield crops and cotton. It also raises the limit for subsidized farm credits to support farmers.citeturn0news12

• Manufacturing and Exports: o enhance the manufacturing and export sectors, the government plans to increase the foreign direct investment (FDI) cap in insurance from 74% to 100%.citeturn0news12 Inclusive Development Initiatives:

• Support for Vulnerable Groups: he budget includes measures to support the poor, youth, farmers, and women, aiming for inclusive growth across various segments of society.citeturn0news12 Infrastructure and Investment:

• Capital Expenditure: he government plans to increase its capital expenditure to ₹11-11.5 lakh crore in FY26, up from ₹10 lakh crore in FY25, to encourage private investments and drive economic growth.citeturn0search2 Tax and Duty Reforms:

• Customs Duties Adjustments: he budget proposes reducing customs duties on marine products and critical minerals, and exempting life-saving drugs from customs duties, to make essential goods more affordable.citeturn0news13 Rural Employment:

• MGNREGA Funding: he government plans to maintain its rural employment spending at ₹860 billion for the 2025-26 fiscal year, continuing its commitment to the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) scheme.citeturn0news17 hese measures reflect the government’s strategy to balance fiscal consolidation with growth-oriented initiatives, aiming to foster economic stability and long-term prosperity. navlistIndia’s Union Budget 2025-26: Key Highlights and Reactionsturn0news12,turn0news13,turn0news14