Presented by Finance Minister Nirmala Sitharaman on February 1, 2025, the Union Budget 2025–26 sets a strong foundation for a digitally empowered, inclusive, and globally competitive India. Guided by the vision of “Sabka Vikas” (Development for All), the budget focuses on tax reforms, digital infrastructure, and structural economic reforms to support India’s path toward becoming a $30 trillion economy by 2047.
Top Highlights of Union Budget 2025–26
Tax Reforms and Relief Measures
- $12 Billion Middle-Class Relief Package
Aimed at easing the financial burden on middle-income families, this package includes:- Revised income tax slabs
- Deductions on education and healthcare expenses
(Note: Detailed tax slab structure is pending official release)
- Stable Corporate Tax Regime
- Corporate tax remains unchanged at 22% for domestic companies.
- Ensures continued appeal for foreign direct investment (FDI).
- MSME Sector Boost
- Updated classification criteria.
- Introduction of credit cards for micro-enterprises to improve access to working capital.
Digital India & Technology Initiatives
Major Allocations and Reforms
- BharatNet Expansion
- Allocation surged by 238% to ₹22,000 crore.
- Aims to provide high-speed internet in rural schools and healthcare centers.
- AI in Education
- ₹500 crore allocated for a Centre of Excellence in AI.
- Focus on adaptive learning platforms and AI-powered school administration.
- Bharatiya Bhasha Pustak Yojana
- Launch of digital textbooks in regional languages to bridge the urban-rural education divide.
- Launch of digital textbooks in regional languages to bridge the urban-rural education divide.
Structural Reforms for Economic Growth
Agriculture & Rural Development
- PM Dhan-Dhaanya Krishi Yojana to enhance agricultural productivity.
- Establishment of a Makhana Board in Bihar.
- National Mission for the promotion of high-yielding seeds.
Manufacturing & Industry
- Expansion of Make in India with targeted missions for:
- Textiles
- Toys
- Electronics
Energy Sector Overhaul
- Push for clean energy technologies.
- Reforms to improve energy supply security and grid resilience.
Fiscal and Economic Outlook
| Category | Allocation (₹ Lakh Crore) | Key Notes |
| Total Expenditure | 50.65 | 7.4% increase over previous year |
| Capital Expenditure | 11.21 | 3.1% of GDP; focus on infra & tech |
| Fiscal Deficit | 4.4% of GDP | Down from 4.5% in FY 2024–25 |
| Gross Borrowings | 14.82 | Funds growth plans without liquidity pressure |
Sector-Wise Budget Allocations
MSMEs & Startups
- Launch of Fund of Funds to support:
- Startups
- First-time entrepreneurs
- Customs duty rationalization on key telecom components to reduce operational costs.
Education
- Establishment of 50,000 new Atal Tinkering Labs in government schools to boost STEM learning.
- Nationwide broadband rollout for rural secondary schools via BharatNet.
Healthcare
- Enhanced funding for:
- Saksham Anganwadi
- Poshan 2.0
- Stronger focus on nutrition and maternal-child health.
Strategic Vision: Six Pillars of Transformation
- Simplified Taxation System
- Reduced compliance burden
- Green Power Sector Reforms
- Clean energy integration and power distribution modernization
- Urban Infrastructure Development
- Smart Cities 2.0 rollout
- Mining Sector Optimization
- Emphasis on sustainability and efficiency
- Financial Inclusion & Credit Expansion
- Targeted support for underserved communities
- Regulatory Reforms
- Improving India’s Ease of Doing Business rankings
- Improving India’s Ease of Doing Business rankings
Challenges & Execution Risks
- Rural Connectivity Gaps
- Last-mile internet and infrastructure rollout remains a bottleneck.
- Global Economic Pressures
- Potential impact of U.S. tariffs and global inflation.
- Skilling Mismatch
- Need to align vocational training with evolving industry skill demands.
- Need to align vocational training with evolving industry skill demands.
Conclusion: Balanced Growth with a Tech-Driven Vision
The Union Budget 2025–26 stands as a visionary blueprint, balancing fiscal discipline with high-impact investments in technology, infrastructure, and human capital. With a focus on tax relief, digital empowerment, and structural reform, it aims to shape a Developed India (Viksit Bharat) by 2047.As always, implementation and accountability will determine whether this ambitious roadmap translates into measurable progress for every Indian citizen.