Finance Minister Nirmala Sitharaman presented her eighth record Budget in the Lok Sabha that comes in the backdrop of growth slowing down to four-year-low of 6.4%. This is the second Budget of the BJP-led NDA Government in its third term in office.
Ms. Sitharaman started her speech by saying that this Budget will initiate reforms in six domains — taxation, urban development, mining, financial sector, power and regulatory reforms.
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“The Budget focussed on driving growth, inclusive development,” said Ms. Sitharaman
Some of the priority areas in Budget 2025:
Tax relief for middle class
No income tax upto ₹12 lakh under new regime. Effectively, under the new tax regime considering the erstwhile standard deduction of ₹75,000, income of up to ₹12.75 would have no income tax liability
Enumerating revisions in tax slabs, the Finance Minister informed that incomes up to ₹4 lakhs would not be taxed, ₹4-8 lakh would host 5% taxation rate, ₹8-12 lakh 10%, ₹12-16 lakh 15%, ₹16-20 lakh 20%, ₹20-24 lakh 25% and incomes above ₹24 lakh 30%. A tax payer in the new regime with an income of ₹12 lakh will get a benefit of ₹80,000 in tax; a person having income of ₹18 lakh will get a benefit of ₹70,000 in tax; a person with an income of ₹25 lakh gets a benefit of ₹1.10 lakh, Ms. Sitharaman added.
Rationalisation of TDS (Tax Deduction at Source) has been announced regime to ease compliance burden. Taxpayers can claim annual value of self-occupied homes as nil only on certain conditions. This will now be allowed for two such properties without any conditions.
PM Dhan Dhanya Krishi Yojana for farmers
The Pradhan Mantri Dhan Dhanya Krishi Yojana for the developing agri-districts was announced in the Budget.
The programme is motivated by the Aspirational Districts Programme which was launched in 2018 to “to quickly and effectively transform 112 most under-developed districts across the country”. The Pradhan Mantri Dhan Dhanya Krishi Yojana will converge existing schemes and will be undertaken in partnership with States. It will cover 100 districts with low productivity, moderate crop intensity, and below-average parameters.
Budget 2025: Key figures
Fiscal Deficit: 4.4% of GDP
Government receipts: Total receipts other than borrowings at ₹34.96 lakh crore
Total Expenditure: ₹50.65 lakh crore
Net tax receipts: ₹28.37 lakh crore
Gross market borrowings: ₹14.82 lakh crore
Several schemes for Bihar
A new Makhana Board, National Institute of Food Technology, Entrepreneurship and Management were announced for Bihar. Apart from these, greenfield airports will be added in addition to the expansion of Patna airport and the West Kosi canal project in Mithilanchal was also announced.
The Makhana Board will provide handholding and training support to makhana farmers and will also work to ensure they receive the benefits of all relevant government schemes. It has been envisioned that support for food processing will result in (1.) enhanced income for the farmers through value addition to their produce, and (2.) skilling, entrepreneurship and employment opportunities for the youth.
Credit guarantee cover enhanced for MSME
MSMEs are the second engine which encompasses manufacturing and services. Currently, over 1 crore registered MSMES generating 36% of our manufacturing have come together to position India as a global manufacturing hub, Ms. Sitharaman mentioned in her Budget speech.
The investment limit classification will be enhanced 2.5 times for MSMES. To improve access to credit, the credit guarantee cover will be enhanced, leading to ₹1.5 lakh crore of additional credit over the next five years. This will also be granted for well-run exporter MSMEs, for term loans upto ₹20 crore.
A new scheme will be launched for 5 lakh women Scheduled Caste and Schedule Tribe first-time entrepreneurs. A National Manufacturing Mission will be initiated for small, medium and large industries to further Make In India.
Insurance for Gig Workers
Online platform workers and gig workers will get ID cards after registering on the E-shram portal. They will be provided healthcare under PM Jan Arogya Yojana. This measure is likely to assist nearly 1 crore gig-workers.
It has been announced the government’s decision to launch a scheme for for the socio-economic development for urban workers.
Increased allocation for Saksham Anganwadi and Poshan 2.0 scheme
An increase has been announced in the money allocated to Saksham Anganwadi and Poshan 2.0 scheme, in the Budget presentation. The Budget mentioned that “the cost norms for the nutritional support will be enhanced appropriately”.
The Revised Estimate (RE) 2024-25 for Saksham Anganwadi and POSHAN 2.0 scheme stands at ₹20,070.90 crore, while the Budget 2024-25 allocation was ₹21,200 crore. The Budget 2025-26 estimate is ₹21,960 crore.
The Saksham Anganwadi and POSHAN 2.0 integrated nutrition support programme was approved by the Government of India for implementation during the 15th Finance Commission period 202l-22 to 2025-26.
Interest-free loans to States for infrastructure development
₹1.5 lakh crore will be provided towards 50-year interest free loans to States, for infrastructure development.
An asset monetisation plan will be launched for 2025-30 period to infuse ₹10 lakh crore capital in new projects. An outlay of ₹500 crore for setting up a centre of excellence in artificial intelligence for education was announced in the Budget.
Jal Jeevan Mission extended till 2028
Jal Jeevan Mission, which aims to provide tap water connection to all rural households, has been extended till 2028 with an enhanced Budget outlay.
Under the Jal Jeevan Mission, 15 crore households, representing 80% of India’s rural population, have been provided access to potable tap water connection.
36 life saving drugs, medicines exempted from custom duty
As many as 36 lifesaving drugs will now be fully exempted from customs duty. The Finance Minister has proposed to add six lifesaving medicines to the list attracting concessional customs duty of 5%. “Full exemption and concessional duty will also respectively apply on the bulk drugs for manufacture of the above,” she said.
Skilling, schools receive boost
50,000 Atal Tinkering labs will be set up in government schools in the next five years “to cultivate the spirit of curiosity and innovation and foster a scientific temper among young minds”. Broadband connectivity would be provided to all government secondary schools and primary health centres in all rural areas under the Bharat Net Project.
Start up funding
A Deep Tech Fund of Funds will also be explored to catalyse the next generation startups as a part of this initiative. It is proposed to extend the benefit provided under Section 80-IAC to startups for another period of five years, i.e. the benefit will be available to eligible start-ups incorporated before 01.04.2030.
For Startups, the government will provide loans ranging from 10 crore to 20 crore, with the guarantee fee being moderated to 1% for loans in 27 focus sectors important for Atmanirbhar Bharat. The Alternate Investment Funds (AIFs) for startups have received commitments of more than 91,000 crore.
Higher education
A Bharatiya Bhasha Pustak Scheme will be announced to provide digital-form Indian language books for school and higher education.
In the next year, 10,000 additional seats will be added in medical colleges and hospitals, towards the goal of adding 75,000 seats in the next five years. Additional infrastructure will be created in the five IITs started after 2014 to facilitate education for 6,500 more students. Hostel and other infrastructure capacity at IIT, Patna will also be expanded.
Published – February 01, 2025 02:42 pm IST
