Highlights of Union Budget 2025-26: Key Announcements and Reforms

The Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman, presented the Union Budget 2025-26 in Parliament today, outlining key financial allocations, economic reforms, and development initiatives. The budget emphasizes four key engines of development: Agriculture, MSMEs, Investment, and Exports, while also introducing financial sector reforms to strengthen economic growth.

Budget Estimates 2025-26:

• Total receipts (excluding borrowings): ₹34.96 lakh crore
• Total expenditure: ₹50.65 lakh crore
• Net tax receipts: ₹28.37 lakh crore
• Fiscal deficit: 4.4% of GDP
• Gross market borrowings: ₹14.82 lakh crore
• Capital expenditure (Capex): ₹11.21 lakh crore (3.1% of GDP)

AGRICULTURE: The First Engine of Development

Prime Minister Dhan-Dhaanya Krishi Yojana – Developing Agri Districts Programme

• Aimed at improving productivity in 100 agricultural districts with low output and below-average credit access.
• 1.7 crore farmers to benefit.

Building Rural Prosperity and Resilience

• Multi-sectoral program for rural employment, skill development, technology, and economic growth.
• Phase 1 covers 100 districts.

Self-Sufficiency in Pulses

• 6-year mission to boost production of Tur, Urad, and Masoor dal.
• NAFED and NCCF to procure pulses for four years.

Support for Fruits, Vegetables, and Special Crops

• A national program to improve fruit and vegetable production, processing, and marketing.
• Establishment of Makhana Board in Bihar to enhance production and export of makhana.

Seed and Cotton Initiatives

• National Mission on High Yielding Seeds to strengthen research and introduce 100+ high-yield seed varieties.
• 5-year mission for Cotton Productivity to enhance yield and promote extra-long staple cotton.

Fisheries and Agriculture Credit

• Sustainable Fisheries Framework for deep-sea fishing in Andaman & Nicobar and Lakshadweep.
• Kisan Credit Card (KCC) loan limit raised from ₹3 lakh to ₹5 lakh.
• New Urea Plant in Assam to boost fertilizer production.

MSMEs: The Second Engine of Development

MSME Classification and Credit Support

• Investment and turnover limits for MSME classification increased by 2.5x and 2x, respectively.
• Customized credit cards (₹5 lakh limit) for micro-enterprises on Udyam Portal, with 10 lakh cards to be issued initially.

Support for Startups and Entrepreneurs

• ₹10,000 crore Fund of Funds for startups.
• New scheme for first-time entrepreneurs from women, SC, and ST categories, offering loans up to ₹2 crore.

Focus on Key Sectors

• Footwear & Leather: Employment for 22 lakh people, generating ₹4 lakh crore turnover.
• Toy Industry: Scheme to promote high-quality, innovative, and sustainable Indian toys.
• Food Processing: National Institute of Food Technology to be set up in Bihar.
• Manufacturing Mission under Make in India for MSMEs and large industries.

INVESTMENT: The Third Engine of Development

Investing in People

• 50,000 Atal Tinkering Labs to be set up in schools.
• Broadband connectivity for all government secondary schools and rural primary health centers.
• ₹500 crore AI Centre of Excellence for education.
• 10,000 additional medical seats in colleges and hospitals.
• Day Care Cancer Centres in 200 district hospitals in 2025-26.

Urban and Social Security Reforms

• PM SVANidhi scheme enhanced with ₹30,000 UPI-linked credit cards for street vendors.
• Social security for gig workers, including identity cards and healthcare under PM Jan Arogya Yojana.

Infrastructure Investments

• ₹1.5 lakh crore interest-free loans for state infrastructure projects.
• ₹10 lakh crore Asset Monetization Plan for new investments.
• Urban Challenge Fund (₹1 lakh crore) for city redevelopment, water, and sanitation projects.
• Nuclear Energy Mission (₹20,000 crore) for Small Modular Reactors (SMRs).
• ₹25,000 crore Maritime Development Fund for port and shipping industry growth.
• UDAN Scheme expansion: 120 new air routes, targeting 4 crore passengers in 10 years.

EXPORTS: The Fourth Engine of Development

• Export Promotion Mission to set sector-wise export targets.
• BharatTradeNet: A unified trade platform for documentation and financing solutions.
• Global Capability Centres (GCCs): Policy to promote outsourcing hubs in tier-2 cities.

FINANCIAL SECTOR REFORMS AND DEVELOPMENT

• FDI in Insurance: Raised from 74% to 100% for companies investing premiums in India.
• Credit Enhancement Facility by NaBFID for infrastructure bonds.
• Grameen Credit Score: A new credit assessment framework for rural borrowers.
• Jan Vishwas Bill 2.0: Decriminalization of 100+ regulatory provisions to improve business environment.

Conclusion

The Union Budget 2025-26 presents a comprehensive growth roadmap focusing on agriculture, MSMEs, infrastructure, exports, and innovation. By increasing capital expenditure, supporting entrepreneurship, and reforming financial regulations, the government aims to strengthen India's economic foundation and drive long-term growth.