By: Dr. Amin
The Union Budget for fiscal year 2025-26, presented by Finance Minister Nirmala Sitharaman on February 1st in Parliament, represents a watershed moment in our nation’s journey toward becoming a developed economy by 2047. Under the visionary leadership of Prime Minister Narendra Modi, this budget embodies the theme of “Sabka Vikas” and demonstrates our government’s unwavering commitment to inclusive growth, fiscal prudence, and economic transformation.
The budget aims to accelerate growth, secure inclusive development, invigorate private sector investments, uplift household sentiments, and enhance the spending power of India’s rising middle class. With total expenditure estimated at rupees fifty lakh sixty-five thousand three hundred forty-five crore and receipts other than borrowings at rupees thirty-four lakh ninety-six thousand four hundred nine crore, this budget strikes a perfect balance between ambitious development goals and responsible fiscal management.
Perhaps the most significant announcement in this budget is the revolutionary change in the income tax structure for the new tax regime. Under the new tax regime, no income tax will be levied on incomes up to twelve lakh rupees. This means that an average earner making one lakh rupees per month will pay absolutely no income tax. For salaried individuals, when accounting for the enhanced standard deduction of seventy-five thousand rupees, those earning up to twelve lakh seventy-five thousand rupees annually will pay nil tax.
This represents the fourth revision of minimum taxable income under Prime Minister Modi’s tenure. The progression tells the story of our commitment to the middle class: from two lakh rupees in 2014 to two and a half lakh rupees, then to five lakh rupees in 2019, seven lakh rupees in 2023, and now twelve lakh rupees in 2025. Towards the new tax structure and other direct tax proposals, the government is set to lose revenue of about one lakh crore rupees, a sacrifice we are willing to make because we recognize that putting more money in the hands of hardworking Indians will substantially boost consumption, savings, and investment.
Our farmers, the annadatas of the nation, occupy a central place in this budget. The Prime Minister Dhan-Dhaanya Krishi Yojana will be launched in partnership with states, covering one hundred districts with low productivity, moderate crop intensity, and below-average credit parameters, to benefit one point seven crore farmers. This comprehensive program will increase productivity, adopt crop diversification, augment post-harvest storage, and improve irrigation facilities.
The loan limit under the Modified Interest Subvention Scheme will be enhanced from three lakh rupees to five lakh rupees for loans taken through the Kisan Credit Card, facilitating short-term loans for seven point seven crore farmers, fishermen, and dairy farmers. This substantial increase recognizes the rising input costs and will provide much-needed financial breathing room to our agricultural community.
The government has also announced a six-year mission to achieve self-reliance in pulses, with special focus on Tur, Urad, and Masoor. Central agencies will procure these three pulses, as much as offered by farmers, over the next four years. Additionally, a five-year mission for cotton productivity will facilitate significant improvements in productivity and sustainability of cotton farming, promoting extra-long staple cotton varieties with the best science and technology support.
Healthcare has received special attention in this budget, with the government allocating ninety-nine thousand eight hundred fifty-eight crore rupees to the healthcare sector, marking a nearly ten percent increase compared to the previous year. This includes funding for key initiatives such as the Ayushman Bharat PM-JAY scheme and the Pradhan Mantri Ayushman Bharat Health Infrastructure Mission.
One of the most impactful announcements is the government’s plan to set up day care cancer centres in all district hospitals over the next three years, with two hundred centres to be established in 2025-26. This initiative will bring specialized cancer treatment closer to people in smaller towns and rural areas, dramatically reducing the financial and emotional burden on families dealing with this disease.
Ten thousand additional seats will be added in medical colleges and hospitals next year, adding to seventy-five thousand seats in the next five years. This massive expansion addresses the critical shortage of healthcare professionals in our country and ensures that more young Indians can pursue careers in medicine. Furthermore, healthcare coverage has been extended to nearly one crore gig workers through the Ayushman Bharat PM-JAY scheme.
Infrastructure development remains a cornerstone of our economic strategy. Capital expenditure of eleven point twenty-one lakh crore rupees, representing three point one percent of GDP, has been earmarked for FY2025-26. This substantial allocation will create jobs, improve connectivity, and lay the foundation for sustained economic growth.
An Urban Challenge Fund of one lakh crore rupees has been announced to implement proposals for ‘Cities as Growth Hubs’, ‘Creative Redevelopment of Cities’ and ‘Water and Sanitation’, with an allocation of ten thousand crore rupees proposed for 2025-26. This fund will finance up to twenty-five percent of the cost of bankable projects, with the stipulation that at least fifty percent of the cost is funded from bonds, bank loans, and public-private partnerships.
A Maritime Development Fund with a corpus of twenty-five thousand crore rupees will be set up, with up to forty-nine percent contribution by the government, and the balance from ports and the private sector. The modified UDAN scheme will enhance regional connectivity to one hundred twenty new destinations and carry four crore passengers over the next ten years, transforming air travel accessibility for millions of Indians.
The Nuclear Energy Mission for research and development of Small Modular Reactors with an outlay of twenty thousand crore rupees will be set up, with five indigenously developed SMRs to be operational by 2033. This forward-looking initiative positions India as a leader in next-generation nuclear technology while supporting our energy transition goals. The development of at least one hundred GW of nuclear energy by 2047 is essential for India’s energy security and climate commitments.
Micro, Small, and Medium Enterprises form the backbone of our economy. The investment and turnover limits for classification of all MSMEs will be enhanced to two point five and two times respectively. Customized Credit Cards with five lakh rupee limits for micro enterprises registered on the Udyam portal will be issued, with ten lakh cards in the first year alone.
The Export Promotion Mission, jointly driven by the Ministries of Commerce, MSME, and Finance, will help MSMEs tap into the export market. A digital public infrastructure called BharatTradeNet has been proposed as a unified platform for trade documentation and financing solutions, simplifying the complex processes that have historically hindered smaller businesses from participating in international trade.
An allocation of twenty thousand crore rupees has been made to implement a private sector-driven research, development, and innovation initiative. The PM Research Fellowship will provide ten thousand fellowships for technological research in IITs and IISc, nurturing the next generation of innovators and scientists. A Centre of Excellence in Artificial Intelligence for education will be set up with a total outlay of five hundred crore rupees, ensuring India remains at the forefront of technological advancement.
The fiscal deficit is estimated to be four point four percent of GDP, lower than the revised estimate of four point eight percent of GDP in 2024-25. This continued fiscal consolidation demonstrates our government’s commitment to responsible economic management. The government aims to reduce its outstanding liabilities to around fifty percent of GDP by March 2031, ensuring long-term economic stability for future generations.
The Union Budget 2025-26 is not merely a financial document; it is a comprehensive roadmap for transforming India into a developed nation by 2047. Through historic tax relief for the middle class, unprecedented support for farmers, revolutionary healthcare expansion, massive infrastructure investments, and strategic focus on innovation and exports, this budget touches every aspect of Indian life. It reflects our government’s deep understanding that democracy, demography, and demand are the three pillars upon which Viksit Bharat will be built. Under Prime Minister Modi’s leadership, we remain committed to ensuring that the benefits of economic growth reach every citizen, in every corner of our great nation. This budget is a testament to that unwavering commitment and the transformative vision that will shape India’s prosperous future.
