The Union Budget for 2025-26 is live now, as the Indian government typically releases it annually on February 1st. The budget will be presented by the Finance Minister of India and will outline the government’s economic agenda, including allocations for various sectors such as health, education, infrastructure, defence, and more. As the Union Budget 2025-26 nears, Indians are eagerly anticipating policy measures that address income tax relief, farmer concerns, and job creation.
Union Budget 2025

Overview
Since 2014 our government’s focus has been on empowerment of citizens, especially the poor and the marginalised. Measures have included programmes that have provided housing, electricity, cooking gas, and access to water. Now it is time for Budget 2025, Here we have some important things to focus on. his will be her eighth consecutive Budget presentation in Parliament and her second full-fledged budget of the Narendra Modi-led NDA government formed in 2024 i.e. Modi 3.0.
Big Updates on Income Tax:
The total tax benefit of slab rate changes can be illustrated with a few examples. A taxpayer in the new regime with an income of ₹12 lakh, will get a benefit of ₹80,000.
A person earning ₹18 lakh, will get a benefit of ₹70,000 in tax. A person earning ₹25 lakh will get a benefit of ₹1,10,000.
As a result of these proposals, revenue of about ₹1 lakh crore in direct taxes and about ₹2,600 crore in indirect taxes will be foregone.
New tax slabs:
Upto ₹4 lakhs: Nil
₹4 lakhs – ₹8 lakhs: 5%
₹8 lakhs – ₹12 Lakhs: 10%
₹12 lakhs – ₹16 lakhs: 15%
₹16 lakhs – ₹20 lakhs: 20%
₹20 lakhs – ₹25 lakhs: 25%
Above ₹25 lakhs: 30%
No income tax payable up to incomes of ₹12 lakh
In recognition of the middle-class contribution to nation-building, we have periodically reduced their tax burden, Ms Sitharaman says.
She adds, ”I am happy to announce that there will be no income tax payable upto incomes of ₹12 lakh.”
This limit will be ₹12.7 lakh for salaried taxpayers due to the standard deduction of ₹75,000. Slabs and rates are being eased across the board, Ms. Sitharaman says.
Centre of Excellence for Artificial Intelligence in Education announced Continuing her speech on Investment as an engine for growth, Ms. Sitharaman announced the setting up of Centre of Excellence for Artificial Intelligence. A centre of excellence for Artificial Intelligence in Education will be set up at a total outlay of ₹500 crore.
Important Discussions and Key Points
- Fiscal Deficit may be budgeted ~4.5% of GDP in FY26 India continues to remain the bright spot supported by its strong macro fundamentals, says SBI Research in its pre-Budget report.
- Nominal GDP growth for FY26 is expected at 10.2%, assuming real GDP growth of 6.2 to 6.4% and inflation of 4 to 3.8%. So, the Nominal GDP would be Rs 357.2 Lakh crore.
- Launch an agricultural yields mission for the bottom 100 districts on the lines of an aspirational districts programme, says FICCI.
- Digitalisation via API route – Requisite details may be filed through the Application Programming Interface (‘API’) so as to reap the benefits of technology and reduce manual errors. Wherein, API connectivity can be primarily used for uploading data schema for Bill of Entry or Shipping Bill preparation, making custom duty payments, etc.
- Income Tax cuts for the middle class may figure in the budget, says economist Rumki Majumdar
- Incentives for a higher investment in research and development and in the manufacturing sector
- Measures to reduce tax litigation and to improve the efficacy of the existing tax dispute mechanisms
- Continuation of rationalisation of TDS/TCS provisions and of capital gain taxation regime
- Reduction of transfer pricing compliance rigour (by extending safe harbour rules, introducing block assessment etc.), says KPMG in India.
People Also View: | |
---|---|
Top 5 NDA Coaching in India | January 2025 Current Affairs |
NDA Mock Tests | Current Affairs For NDA 2025 |
What to Expect in the Union Budget 2025:
- Focus on Economic Recovery:
- After the challenges posed by the pandemic, the Indian government has been working on economic recovery. This means there might be a continued emphasis on boosting growth, encouraging private-sector investment, and creating jobs.
- It could also include measures to support key sectors like manufacturing, agriculture, and services.
- Tax Reforms:
- There has been a gradual shift towards simplifying the tax system, with discussions around bringing more transparency, reducing tax burdens for individuals and businesses, and possibly revisiting tax slabs.
- Direct Tax Code changes could be a topic of debate, as well as the potential for more tax incentives for startups and small businesses.
- Infrastructure Development:
- The National Infrastructure Pipeline (NIP) is likely to receive continued focus, with major investments in roads, ports, airports, and railway modernization.
- Expect more allocations for smart cities, electric vehicles, and sustainable development projects.
- Digital and Green Economy:
- As India pushes for a more digitally-driven economy, the budget might propose more investments in digital infrastructure, 5G rollout, and cybersecurity.
- Initiatives supporting a green economy—such as renewable energy, electric vehicles (EV), and climate action—might also get priority.
- Social Welfare & Healthcare:
- Health and education spending has been a priority in recent budgets, and the trend may continue with more investments in the healthcare sector, especially to strengthen the public health system.
- Allocations for Ayushman Bharat (the government health insurance scheme) and increased funding for mental health and wellness programs could be part of the agenda.
Conclusion
The Union Budget 2025-26 aims to balance strong economic growth with prudent fiscal management, addressing the needs of taxpayers, businesses, and essential industries. Industry leaders anticipate measures to stimulate consumption and enhance capital expenditure while supporting key sectors such as real estate, MSMEs, healthcare, AI, EVs, and renewable energy. A firm commitment to fiscal consolidation will remain a top priority for sustainable progress.
One thought on “Union Budget 2025 Live – Eighth consecutive budget in the Lok Sabha by FM Sitharaman”
Comments are closed.