BUDGET SUMMARY,2025
Detailed Video Discussion
-By CA PUJA MISHRA
Relevant For: EPFO,NABARD,SSC CGL,UPSC,CDS,STATE
PCS, SBI, IBPS AND other Competitive Exams…
Budget and Constitutional Provisions
According to Article 112 of the Indian Constitution, Union Budget of a year is
referred to as the Annual Financial Statement (AFS).
It is a statement of the estimated receipts and expenditure of the Government
in a financial year (which begins on 01 April of the current year and ends on 31
March of the following year). In addition to it, the Budget contains:
Estimates of revenue and capital receipts,
Ways and means to raise the revenue,
Estimates of expenditure,
Details of the actual receipts and expenditure of the closing financial year and
the reasons for any deficit or surplus in that year, and
The economic and financial policy of the coming year, i.e., taxation proposals,
prospects of revenue, spending programme and introduction of new
schemes/projects.
The Budget Division of the Department of Economic Affairs in the Finance
Ministry is the nodal body responsible for preparing the Budget.
Theme: «Sabka Vikas» (Development for All)
Union Budget highlights that Agriculture, MSME, Investment, and Exports are
engines in thejourney to Viksit Bharat
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Agriculture as the 1st Engine
1. Prime Minister Dhan-Dhaanya Krishi Yojana - Developing Agri Districts Programme:
the programme will cover 100 districts with low productivity, moderate crop intensity
2. Aatmanirbharta in Pulses:
Government will now launch a 6-year “Mission for Aatmanirbharta in Pulses” with a special focus
on Tur, Urad and Masoor.
3. Makhana Board in Bihar: Makhana Board will be established in Bihar to improve production,
processing, value addition, and marketing of makhana.
Regions Where Makhana is Grown: o Cultivated in lowland ponds of India, China, and Japan.
o India is the largest producer, with Bihar contributing 90% of global production.
4. Fisheries: India ranks second-largest globally in fish production and aquaculture. o Seafood
exports are valued at 60 thousand crores.
Government will launch Indian Exclusive Economic Zone and High Seas, with a special focus on the
Andaman & Nicobar and Lakshadweep Islands.
5. Mission for Cotton Productivity: It is 5-year mission.
It facilitates significant improvements in productivity and sustainability of cotton farming,
Enhanced Credit through KCC: The loan limit under the Modified Interest Subvention Scheme will
be enhanced from 3 lakh to 5 lakh for loans taken through the KCC .
scheme was introduced in 1998 for providing adequate and timely credit support from the banking
system
6. Urea Plant in Assam: Government had reopened three dormant urea plants in the
Eastern region
7. India Post with 1.5 lakh rural post offices, will be repositioned to act as a catalyst for the
rural economy
MSMEs as the 2nd engine
Revision in classification criteria for MSMEs: Currently, over 1 crore registered MSMEs,
employing 7.5 crore people, and generating 36 per cent of manufacturing.
MSMEs are responsible for 45 per cent of our exports.
The investment and turnover limits for classification of all MSMEs will be enhanced to 2.5
and 2 times respectively.
Credit Cards for Micro Enterprises: Government will introduce customized Credit Cards with a 5-lakh limit for
micro enterprises registered on Udyam portal.
In the first year, 10 lakh such cards will be issued.
Scheme for First-time Entrepreneurs: A new scheme will be launched for 5 lakh women, Scheduled Castes and
Scheduled Tribes first-time entrepreneurs.
This will provide term loans up to 2 crores during the next 5 years.
Focus Product Scheme for Footwear & Leather Sectors: To enhance the productivity, quality and competitiveness
of India’s footwear and leather sector,
scheme is expected to facilitate employment for 22 lakh persons, generate turnover of 4 lakh crore and exports of
over 1.1 lakh crore
Measures for the Toy Sector: Government will implement a scheme to make India a global hub for toys.
Support for Food Processing: Government will establish a National Institute of Food Technology, Entrepreneurship
and Management in Bihar
Manufacturing Mission - Furthering “Make in India”: Government will set up a National Manufacturing Mission
covering small, medium and large industries for furthering “Make in India”
Investment as the 3rd engine:
Investing in People: Saksham Anganwadi and Poshan 2.0: Provides nutritional support to more than 8 crore
children, 1 crore pregnant women and lactating mothers all over the country.
The cost norms for the nutritional support will be enhanced appropriately.
Atal Tinkering Labs: 50,000 Atal Tinkering Labs will be set up in Government schools in next 5 years
Broadband Connectivity: Broadband connectivity will be provided to all Government secondary schools
and primary health centres in rural areas under the Bharatnet project.
▪ Bharatiya Bhasha Pustak Scheme: It provides digital-form Indian language books for school and higher
education
National Centres of Excellence for Skilling: 5 National Centres of Excellence for skilling will be set up with
global expertise and partnerships.
Aim: To equip our youth with the skills required for “Make for India, Make for the World” manufacturing.
Expansion of Capacity in IITs: Total number of students in 23 IITs has increased 100 per cent from 65,000 to
1.35 lakh in the past 10 years.
Day Care Cancer Centres in all District Hospitals: Government will facilitate setting up of Day Care Cancer
Centres in all district hospitals in the next 3 years.
200 Centres will be established in 2025-26.
▪ PM SVANidhi: Scheme has benefitted more than 68 lakh street vendors.
The scheme will be revamped with enhanced loans from banks, UPI linked credit cards with 30,000 Rupee
limits.
Investing in the Economy: Support to States for Infrastructure: An outlay of 1.5 lakh
crore is proposed for the 50-year interest free loans to states for capital expenditure
Asset Monetization Plan 2025-30: The second Plan for 2025-30 will be launched to
plough back capital of 10 lakh crore in new projects.
Jal Jeevan Mission: 15 crore households representing 80 per cent of India’s rural
population have been provided access to potable tap water connections.
Nuclear Energy Mission for Viksit Bharat: Development of at least 100 GW of nuclear
energy by 2047 is essential for our energy transition efforts.
A Nuclear Energy Mission for research & development of Small Modular Reactors (SMR)
with an outlay of 20,000 crore will be set up.
Maritime Development Fund: A Maritime Development Fund with a corpus of 25,000
crore will be set up.
This will have up to 49 per cent contribution by the Government, and the balance will
be mobilized from ports and private sector.
▪ UDAN - Regional Connectivity Scheme: A modified UDAN scheme will be launched to
enhance regional connectivity to 120 new destinations and carry 4 crore
passengers in the next 10 years.
Western Koshi Canal Project in Mithilanchal: Financial support will be provided for the
Western Koshi Canal ERM Project benefitting a large number of farmers cultivating over
50,000 hectar
SWAMIH Fund 2: Under the Special Window for Affordable and Mid-Income Housing
(SWAMIH) 50,000 dwelling units in stressed housing projects have been completed.
Another 40,000 units will be completed in 2025
Tourism for employment-led growth: Top 50 tourist destination sites in the country
will be developed in partnership with states through a challenge mode.
4. Investing in Innovation: Research, Development and Innovation: To implement
private sector driven Research, Development and Innovation initiative 20,000 crores has
been allocated.
PM Research Fellowship: Over the next five years, the government will offer 10,000
fellowships for technological research at IITs and IISc, with increased financial support.
Gene Bank for Crops Germplasm: The 2nd Gene Bank with 10 lakh germplasm lines
will be set up for future food and nutritional security.
India’s first gene bank was set up in 1996 by the Indian Council of Agricultural Research-
National Bureau of Plant Genetic Resources (ICAR-NBPGR) in New Delhi.
Gyan Bharatam Mission: The Gyan Bharatam Mission will survey, document, and
conserve over 1 crore manuscripts in collaboration with academic institutions, museums,
libraries, and private collectors.
Exports as the 4th engine:
Export Promotion Mission: Government will set up an Export Promotion Mission, with sectoral and ministerial
targets, driven jointly by the Ministries of Commerce, MSME, and Finance.
It will facilitate easy access to export credit, cross-border factoring support, and support to MSMEs to tackle non-
tariff measures.
BharatTradeNet: A digital public infrastructure, ‘BharatTradeNet’ (BTN) for international trade will be set-up as a
unified platform for trade documentation and financing solutions.
Global Capability Centres: A national framework will be formulated for emerging tier 2 cities.
This will suggest 16 measures for enhancing availability of talent and infrastructure, building byelaw reforms, and
mechanisms for collaboration with industry.
Financial Sector Reforms and Development:
FDI in Insurance Sector: o The FDI limit for the insurance sector will be raised from 74 to 100 per cent.
o This enhanced limit will be available for those companies which invest the entire premium in India.
Grameen Credit Score: o Public Sector Banks will develop ‘Grameen Credit Score’ framework to serve the credit
needs of SHG members and people in rural areas.
KYC Simplification: o The revamped Central KYC Registry will be rolled out in 2025
o Aim: To implement the simplifying the KYC process.
Fiscal Policy:
Fiscal Consolidation:
Direct Tax Reforms:
Rationalization of Tax Deduction at Source (TDS):
o Reduce the number of TDS rates and thresholds for better clarity and uniformity.
o Increase the threshold for tax deduction on interest for senior citizens from ₹50,000 to
₹1 lakh.
o Raise the annual limit for TDS on rent from ₹2.40 lakh to ₹6 lakh
Reforms in Tax Collection at Source (TCS): o Increase the
threshold for TCS on remittances under RBI’s Liberalized Remittance Scheme (LRS) from
₹7 lakh to ₹10 lakh.
Reducing Compliance Burden: o Small charitable trusts and institutions
will have their registration period extended from 5 years to 10 years, reducing
administrative burdens.
Ease of Doing Business: o Transfer pricing will be streamlined with a new
scheme determining arm’s length price for a block period of three years, aligning with
global best practices.
o Safe harbour rules will be expanded to reduce litigation and ensure certainty in
international taxation.
o Withdrawals from old National Savings Scheme (NSS) accounts will be exempt from tax if
made on or after August 29, 2024, benefiting senior citizens.
o NPS Vatsalya accounts will receive the same tax treatment as normal NPS accounts,
subject to overall limits.
Support for Start-Ups o Start-ups incorporated before
April 1, 2030, will continue to receive existing tax benefits,
extending the incorporation period by five years.
Personal Income Tax Reforms o No income tax for
incomes up to ₹12 lakh under the new tax regime (₹12.75
lakh for salaried taxpayers with ₹75,000 standard
deduction).
Budget Estimates 2025-26
For FY 2025-26, the Union Finance Minister stated that the total
receipts other than borrowings andthe total expenditure are
estimated at ₹34.96 lakh crore and ₹50.65 lakh crore
respectively. The net tax receipts are estimated at ₹28.37 lakh
crore.
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