A national budget serves as the backbone of a country’s economy, helping maintain financial discipline while allocating resources for development. The Union Budget 2025-26, presented by Finance Minister Nirmala Sitharaman, outlines India’s economic roadmap with a focus on investment, agriculture, exports, energy, health, and education. The government has framed this budget under the “Viksit Bharat” (Developed India) vision, identifying four primary economic drivers: agriculture, MSMEs, investment, and exports. While the budget includes ambitious initiatives, it also suffers from significant shortcomings that demand immediate attention to ensure effective policymaking.
Limited Relief for the Middle and Lower-Income Groups
The budget provides some tax relief for middle-class and lower-income groups, such as raising the income tax exemption limit to ₹12 lakh. However, it lacks direct cash assistance or substantial subsidies—a critical necessity given India’s rising inflation. Despite economic challenges, no significant efforts have been made to shield vulnerable citizens from price hikes on essential goods. The government should have expanded programs like Pradhan Mantri Garib Kalyan Yojana, which directly supports low-income groups. Without stronger social safety nets, the burden of inflation will continue to weigh on the common citizen.
Inadequate Agricultural Reforms
The “Pradhan Mantri Dhan-Dhanya Krishi Yojana” aims to boost agricultural production, crop diversification, and storage infrastructure. However, the budget fails to address key agricultural challenges, such as ensuring direct market access for farmers, improving rural cold storage facilities, and promoting modern farming technologies. A more substantial investment in rural agricultural markets and logistical infrastructure was necessary to help farmers achieve better prices for their produce. Additionally, while loan facilities for farmers exist, the government missed an opportunity to introduce easier credit policies and increased subsidies for farming equipment to strengthen India’s agricultural backbone.
MSMEs Neglected Once Again
Micro, Small, and Medium Enterprises (MSMEs) play a vital role in India’s economy, yet they continue to struggle with access to credit and financial support. While the budget extends loan guarantees for MSMEs, it does not offer direct grants, subsidies, or tax breaks, which could have provided immediate relief to small businesses. Zero-interest or low-interest loan schemes should have been introduced to help struggling entrepreneurs. Moreover, the “Make in India” initiative should have been expanded to include higher incentives for small businesses. Without stronger financial backing, MSMEs will find it challenging to compete with larger corporations, further widening economic inequality.
Health and Education: Persistent Neglect
Education and healthcare are fundamental pillars of human development, yet this budget fails to allocate adequate funds for these crucial sectors. While the government has announced initiatives such as new medical seats and the “Saksham Anganwadi & Poshan 2.0” program, public health infrastructure remains underfunded. Rural healthcare centers continue to suffer from lack of facilities, medical staff, and essential medicines. The budget should have focused on strengthening rural hospitals and primary healthcare centers to provide accessible and affordable healthcare for all.
Similarly, education remains a neglected sector. Despite India’s aspirations for digital transformation, the budget lacks significant investments in educational technology. More funding was needed to modernize government schools, enhance teacher training programs, and bridge the digital divide. Without bold education reforms, India risks falling behind in the global knowledge economy.
Unemployment: No Clear Strategy
Although the budget promotes infrastructure projects that may create jobs, it does not introduce a direct national-level employment scheme. Urban areas desperately need an employment guarantee program similar to MGNREGA for rural workers. The government should have introduced special incentives for startups and new industries to boost job creation and reduce unemployment. The absence of a robust employment strategy raises serious concerns about the long-term economic well-being of millions of job seekers.
Taxation: The Burden on Salaried Individuals
Despite tax reforms, the salaried class and small businesses still face significant tax burdens. The government should have introduced more progressive tax policies to bring more people into the tax net while reducing the financial strain on lower-income individuals. The current tax structure fails to encourage spending and savings, which are essential for economic growth. Increasing tax exemptions and deductions would have strengthened consumer purchasing power, ultimately benefiting the economy.
Renewable Energy: Missed Opportunities
While the budget allocates funds for nuclear energy, it does not adequately focus on renewable energy sources such as solar and wind power. Given the global push for clean energy, India should have expanded investments in solar power projects, particularly in rural areas. The “National Solar Mission” required a larger budget to accelerate India’s transition to sustainable energy solutions. Ignoring renewable energy not only slows progress toward energy security but also increases environmental concerns.
Exports and Trade: A Weak Framework
The introduction of “Bharat Trade Net” is a step toward boosting exports, but the budget does not offer direct incentives for exporters. Expanding the number of Export Promotion Zones and providing easier credit facilities for export businesses should have been a priority. The “Make in India” initiative also needed stronger global market integration policies to ensure Indian goods remain competitive internationally. Without well-structured reforms, India’s export growth may remain sluggish, limiting the economy’s global competitiveness.
Conclusion: A Budget That Falls Short
The Union Budget 2025-26 introduces several promising initiatives, including investments in infrastructure, agriculture, and MSMEs. However, its shortcomings outweigh its benefits. The government missed critical opportunities to provide stronger financial support to the poor, improve healthcare and education, boost employment, and accelerate renewable energy growth.
For India to truly achieve the “Viksit Bharat” vision, the government must address these deficiencies by:
Expanding direct cash support and subsidies for the lower-income class.
Investing in modern agricultural infrastructure and direct farmer-market connections.
Strengthening MSMEs through financial grants, lower taxes, and zero-interest loans.
Increasing budget allocation for healthcare and education, particularly in rural areas.
Implementing a nationwide employment generation program to tackle rising joblessness.
Prioritizing renewable energy investment for sustainable economic growth.
Offering greater incentives for exporters and small businesses.
If the government takes corrective measures, India can move toward sustainable economic stability. However, without significant reforms, the gap between economic aspirations and ground realities will continue to widen, undermining the vision of a truly developed nation.
