The Union Budget 2025–26

The Union Budget 2025–26, presented by Finance Minister Nirmala Sitharaman, emphasizes inclusive growth under the theme “Sabka Vikas” (Development for All). It aims to stimulate consumption, support key sectors, and maintain fiscal prudence. Here’s a concise analysis:India Government Financial Times

🔑 Key Highlights

1. Tax Reforms

Income Tax Relief: Under the new tax regime, individuals earning up to ₹12.75 lakh annually (including a ₹75,000 standard deduction) are exempt from income tax.
Revised Tax Slabs: The new structure introduces a 0% tax rate up to ₹4 lakh, with subsequent slabs at 5%, 10%, 15%, 20%, 25%, and 30% for higher income brackets .
TDS Adjustments: The TDS limit on senior citizens’ interest income has been doubled to ₹1 lakh, and the annual TDS limit on rent increased to ₹6 lakh.Wikipedia+1India Briefing+1

2. Fiscal Parameters

Total Expenditure: Estimated at ₹50.65 lakh crore, marking a 7.4% increase over the previous year.
Fiscal Deficit: Targeted at 4.4% of GDP.
Capital Expenditure: Allocated ₹11.21 lakh crore, constituting 3.1% of GDP .PRS Legislative Research+1Wikipedia+1 Yuka vanheijden Blog – Yuka vanheijden+3Press Information Bureau+3EY+3

3. Sectoral Initiatives

Agriculture: Launched a six-year program to boost pulse and cotton production, reduce import dependency, and enhance farm credit limits to ₹5 lakh .
Manufacturing: Introduced the National Manufacturing Mission to strengthen ‘Make in India’ by supporting sector-specific clusters and reducing cost disadvantages .
Urban Transport: Doubled the budget for Mumbai Urban Transport Projects to ₹1,777 crore to improve suburban rail infrastructure .Reuters @EconomicTimes The Times of India+1Wikipedia+1

4. Social Welfare

Women & Children: Allocated ₹5.65 lakh crore, an 18.5% increase, supporting programs like the Pradhan Mantri Awas Yojana and nutrition schemes.
Gig Workers: Introduced identity cards to enhance access to healthcare and welfare benefits .AP News

📊 Economic Outlook

GDP Growth: Projected nominal growth rate of 10.1% for 2025–26.
Tax Revenue: Net tax receipts estimated at ₹28.37 lakh crore, an 11% increase over the previous year .Press Information Bureau+1PRS Legislative Research+1

📈 Market Reactions

Positive Impact: FMCG and auto sectors saw gains due to increased consumer spending power.
Negative Impact: Infrastructure and insurance sectors experienced declines, attributed to modest capital spending and changes in tax-saving incentives .Reuters

🧭 Conclusion

The 2025–26 budget focuses on stimulating consumption and supporting key sectors while maintaining fiscal discipline. However, it faces criticism for limited structural reforms in areas like infrastructure and human capital development, which are essential for long-term growth.Reuters

For a detailed overview, you can refer to the official budget documents here: India Budget 2025–26.