FM says taxpayers will now have more money after the change in income tax slabs
Union Finance Minister Nirmala Sitharaman shows the Budget tablet at Ministry of Finance before heading to the Parliament. PIC/PTI
Finance Minister Nirmala Sitharaman on Saturday presented the Budget 2025-26 in the Parliament with an aim at accelerating employment-led inclusive growth, propelled by investments in the agricultural and rural sector, MSMEs and exports while sticking to the fiscal consolidation path. “This budget is dedicated to accelerating growth, driven by our aspirations for a 'Viksit Bharat'. Our economy remains the fastest growing among all major economies,” the Finance Minister said in Lok Sabha.
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The key domains covered in the Union Budget include taxation, power, urban development, mining, the financial sector, and regulatory reforms. These areas are central to the government's focus on driving growth, improving infrastructure, enhancing governance, and ensuring sustainable development across various sectors.
She has kept the budget deficit target on a declining path to 4.4 per cent of GDP in 2025-26 from 4.8 per cent of GDP in 2024-25. The net market borrowing for the budget has been fixed at Rs 11.54 lakh crore while the rest of the funds will come from small savings and other sources, the Finance Minister said. The government’s gross borrowing target for FY26 was revised upwards by 5.7 per cent to R14.82 lakh crore from R14.01 lakh crore in FY25.
In order to boost domestic manufacturing, she has also rationalised customs duties to increase tariffs on finished goods such as electronic products and reduce the duty on components used as inputs by local manufacturers. The Finance Minister outlined specific proposals, starting with agriculture as the “first engine” to drive growth. Under the Prime Minister Krishi Yojana, a new initiative inspired by the success of the Aspirational District Programme, the government will launch an agricultural district programme in partnership with states. This will target 100 districts with low productivity, moderate crop intensity, and below-average credit parameters.
The initiative is expected to benefit 1.7 crore farmers. The Finance Minister also announced an increase in the Kisan Credit Card loan limit from R3 lakh to R5 lakh under the interest subvention scheme. MSMEs have been identified as the second engine of growth, and the focus will be on the 5.7 crore MSMEs, which include over one crore registered businesses employing 7.5 crore people and contributing 36 per cent to India’s manufacturing.
These MSMEs are crucial in positioning India as a global manufacturing hub, responsible for 45 per cent of the nation’s exports. To boost their growth and efficiency, the government will enhance the investment and turnover limits for MSMEs, increasing them by two-and-a-half times and two times, respectively. This move is expected to empower MSMEs to scale up, innovate, and generate more employment opportunities for the youth.
The Finance Minister announced that the government will implement specific policy and facilitation measures to boost the productivity, quality, and competitiveness of India's footwear and leather sector products. This scheme is expected to create employment for 22 lakh people, generate over Rs 400 crore, and achieve exports of over Rs 1.1 lakh crore. In addition, measures will be introduced for the toy sector, building on the National Action Plan for Toys. A new scheme will aim to establish India as a global hub for toys, focusing on developing clusters, skills, and a manufacturing ecosystem that will produce high-quality, innovative, and sustainable toys, representing the “Made in India” brand, the FM said.
Sitharaman emphasised investment as the third engine of growth, which includes investing in people, the economy, and innovation. As part of investing in people, the government is focusing on the Sashakt Anganwadi and Poshan 2.0 programmes, which provide nutritional support to over eight crore children, pregnant women, lactating mothers, and around 20 lakh adolescent girls in aspirational districts and the Northeast region. The cost norms for these programnes will be enhanced, Sitharaman added.
Opposition flays Union Budget
‘Government bankrupt of ideas’
A band-aid for bullet wounds! Amid global uncertainty, solving our economic crisis demanded a paradigm shift… the Centre is "bankrupt of ideas"
Congress leader Rahul Gandhi
‘Nothing for Bengal’
The Union budget has nothing for Bengal. As in the past during the BJP’s reign, there has not been enough allocation for the state in this budget. Our [TMC] MPs have been vocal and have sought a rise in the allocation of funds for central projects. We have demanded new projects for Bengal but the state remains deprived.
Trinamool Congress leader Abhishek Banerjee
‘Bihar budget’
Budget does not have special schemes for states like Tamil Nadu and it appears to be “Bihar’s Budget,” rather than the Union Budget as several development schemes have been announced for that state as Assembly election is due there this year.
AIADMK general secretary Edappadi K Palaniswami
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