Budget 2025 _53098755_2025_02_06_12_42

Budget 2025
Budget 2025
• It is a statement of the estimated receipts and
expenditure of the Government in a Financial
Year (which begins on 1st April of the current
year and ends on 31st March of the following
year).
• The term ‘Budget’ is not mentioned in the
constitution.
• The constitution refer it as ‘Annual Financial
Statement’. ( Article 112 )
• Article 266 - Parliamentary approval is
required to draw money from the Consolidated
Fund of India.
• Article 114 – Appropriation Bill Needed.
• Appropriation Bill gives power to the
government to withdraw funds from the
Consolidated Fund of India for meeting the
expenditure during the financial year.
WHO IS RESPONSIBLE FOR PREPARING BUDGET ?

• The Budget Division of the Department of
Economic Affairs in the Finance Ministry is the
nodal body responsible for preparing the
Budget.
• Finance Minister Nirmala Sitharaman presented
her 8th straight budget.
1
Railway Budget
• The recommendation of the Acworth Committee
separated the railway budget from the general
budget in 1924.
• The merger of Railway Budget with General
Budget is based on the recommendations of the
Committee headed by Shri Bibek Debroy
• The Government has decided to merge Rail
Budget with the Union Budget from budget year
2017-18.
• “A country is not just its soil; a country is its
people”
• By Telugu poet and playwright Shri Gurajada
Appa Rao’s
2
The government has presented the Union Budget 2025-26 with the
Theme “Sabka Vikas.” i.e Viksit Bharat
Aspiration of Viksit Bharat:

1. Zero-poverty;
2. Hundred percent good quality school education;
3. Access to high-quality, affordable, and
comprehensive healthcare;
4. Hundred per cent skilled labour with meaningful employment;
5. Seventy per cent women in economic activities; and
6. Farmers making our country the ‘food basket of the world’.
Focus Areas of Budget

• Poor (Garib),
• Youth,
• Farmer (Annadata)
• Women (Nari).
3
Viksit Bharat
1) Accelerate growth,
2) Secure inclusive development,
3) Invigorate private sector investments,
4) Uplift household sentiments, and
5) Enhance spending power of India’s rising middle
class.
Engines for journey towards Viksit Bharat
4
Four Engines
• 1st Engine: Agriculture
• 2nd Engine: MSMEs
• 3rd Engine: Investment
• 4th Engine: Exports
1st Engine: Agriculture
Prime Minister Dhan-Dhaanya Krishi Yojana -

Developing Agri Districts Programme
• The programme to be launched in partnership
with the states, covering 100 districts with low
productivity, moderate crop intensity and
below-average credit parameters, to benefit
1.7 crore farmers
Mission for Cotton Productivity

• 5-year mission announced to facilitate significant improvements in
productivity and sustainability of cotton farming, and promote extra-long
staple cotton varieties.
Makhana Board for Bihar:

• To enhance production, processing, and value
addition of makhana. GI Tag in 2022
National Mission on High Yielding Seeds (Increase Production)
Kisan Credit Card Loan Limit Increase:

• Raised from ₹3 lakh to ₹5 lakh.
5
2nd Engine: MSMEs
• The investment and turnover limits for classification of all MSMEs to be

enhanced to 2.5 and 2 times respectively.
Significant enhancement of credit availability with guarantee cover

₹ in Crore Credit guarantee cover
Current Revised
MSEs 5 10
Startups 10 20
Exporter MSMEs For Term Loans Up To ` 20
Crore
6
Credit Cards for Micro Enterprises:
• Customised Credit Cards with a ₹ 5 lakh limit
for micro enterprises registered on Udyam
portal.
• In the first year, 10 lakh such cards will be
issued.
New Entrepreneur Scheme:

• Offers term loans up to ₹2 crore for 5 lakh women, Scheduled Caste, and
Scheduled Tribe first-time entrepreneurs over
five years.
National Manufacturing Mission:

• Supports MSMEs alongside medium and large
industries to promote “Make in India”
• Quality Product , Workforce in demand Jobs
etc
Labour Intensive Industries

• Focus Product Scheme for Footwear & Leather
Sectors
• Toys Manufacturing Promotion: A new scheme
to establish India as a global hub for ‘Made in
India’ toys.
• Support for Food Processing - A National
Institute of Food Technology, Entrepreneurship
and Management to be set up in Bihar.
7
3rd Engine: Investment
Investment in People
1. Saksham Anganwadi and Poshan 2.0 (Nutrition

Rich Food)
2. Expansion of Capacity in IITS
3. Day Care Cancer Centres in all District
Hospitals
4. Bharatiya Bhasha Pustak Scheme
• Bharatiya Bhasha Pustak Scheme announced
to provide digital-form Indian language
books for school and higher education.
5. 5 National Centres of Excellence for skilling
with global partnerships.
• “Make for India, Make for the World”
manufacturing
6. Atal Tinkering Labs (Nurture an innovative
mindset amongst high school students)
• 50,000 Atal Tinkering Labs to be set up in
Government schools in next 5 years
7. ₹500 crore for AI Centre of Excellence for
education.
8. Broadband connectivity for rural government
schools and primary health centers
under Bharatnet.
9. Expansion of Medical Education: 10,000
additional seats with goal of Adding 75000
seats in next 5 years
10. PM SVANidhi (Vendors) : Scheme to be
revamped with enhanced loans from banks, UPI linked credit cards with
₹ 30,000 limit, and capacity building support.
8
11. Gig workers enter into formal agreements with
on-demand companies to provide services to
the company's clients.
• Gig worker’s identity cards, e-Shram
registration, and healthcare under PM Jan
Arogya Yojana.
Investing in People , Economy and Innovation
Under the Special Window

for Affordable and Mid-Income
Housing (SWAMIH) Fund
- Aiming at completing stuck
housing projects and provide
relief to homebuyers whose
apartments have been delayed
for years in the country
9
State-Level Incentives –
• Performance-linked incentives (PLI) will be provided to states that improve
tourist facilities, cleanliness, and marketing efforts.
Better Connectivity
• Transport and logistics infrastructure will be improved to make it easier
for people to travel to popular destinations.
Project Real Time Progress
10
4th Engine: Exports
Note - Global Capability Centres (GCCs) or Global

In-House Centres (GICs) were formerly back
offices set up by multinational corporations for
outsourcing.
Reforms as the Fuel to the Engines of Viksit Bharat

Taxation Proposals
1) Direct Taxes Proposals
2) Indirect Tax Proposals
11
Direct Taxes Proposals
• 1961 Income tax Act (Old)

• Ease Of Doing Buisness
• The Financial Stability and Development Council (Financial stability)
12
1. New Direct Tax Slabs
• Tax-Free Income Limit Raised: No income
tax on annual income up to ₹12 Lakh.
• Salaried Taxpayers Benefit: Those earning
up to ₹12.75 Lakh pay NIL tax due to a
₹75,000 standard deduction.
• Revenue Impact: ₹1 Lakh Crore loss due to tax reductions.
2. TDS/TCS Rationalization & Compliance Ease

• Senior Citizens’ Interest Income: TDS
deduction limit doubled from ₹50,000 to ₹1
Lakh.
• Rent TDS Threshold Increased: From ₹2.4
Lakh to ₹6 Lakh per annum.
o Tax Deducted at Source
o Tax Collected at Source
3. Encouraging Voluntary Compliance

• Encouraging voluntary compliance: Extended
Time for Filing Updated Tax Returns from 2
years to 4 years.
• Charitable Trusts &
Institutions: Registration period extended
from 5 years to 10 years.
Indirect Tax Proposals

1. Rationalisation of Customs Tariff Structure for Industrial Goods
• Removal of 07 tariff rates
• Apply not more than one cess or surcharge
• Apply equivalent cess to maintain effective
duty incidence on most items and lower cess
on certain items.
13
2. Sector specific proposals
• Make in India- Exemption to open cell for
LED/LCD TV, looms for textiles, capital
goods for lithium ion battery of mobile
phones and EVs
• Export promotion – duty free inputs for
handicraft and leather sectors.
3. Improved access to life saving medicines

• Addition of:
o 36 lifesaving drugs/medicines are
exempted from Basic Customs Duty (BCD).
o 6 medicines in 5% duty list;
o 37 medicines and 13 new patient
assistance programmes in exempt list
Enforce repayment discipline.

• National Bank for Financing Infrastructure and Development (NaBFID)
• Know Your Customer (KYC) registry to have a “streamlined system”.
14
Capital Receipts
• Money earned by selling assets (or disinvestment)
Revenue Receipts
• Money earned by the government through tax (such as excise duty, income
tax) and non-tax sources (such as dividend income, profits, interest
receipts).
Revenue Expenditure
• For example, this includes salaries, interest payments, pension, and
administrative expenses.
Capital expenditure
• Long-term investments by the government on creating assets such as roads
and hospitals.
• Money given by the government in the form of loans to states or repayment
of its borrowings.
• Effective capital expenditure is defined as the sum of capital expenditure
and grants for creation of capital assets to States.
15
16
17
• The Railways' operating ratio (OR), which measures how much is spent to
earn ₹100, is projected at ₹98.43 for 2025-2026.
18

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Budget 2025

WHO IS RESPONSIBLE FOR PREPARING BUDGET ?

Aspiration of Viksit Bharat:

Focus Areas of Budget

Engines for journey towards Viksit Bharat

1st Engine: Agriculture

Prime Minister Dhan-Dhaanya Krishi Yojana -

Mission for Cotton Productivity

Makhana Board for Bihar:

National Mission on High Yielding Seeds (Increase Production)

Kisan Credit Card Loan Limit Increase:

• The investment and turnover limits for classification of all MSMEs to be

Significant enhancement of credit availability with guarantee cover

New Entrepreneur Scheme:

National Manufacturing Mission:

Labour Intensive Industries

1. Saksham Anganwadi and Poshan 2.0 (Nutrition

Investing in People , Economy and Innovation

Under the Special Window

Project Real Time Progress

Note - Global Capability Centres (GCCs) or Global

Reforms as the Fuel to the Engines of Viksit Bharat

• 1961 Income tax Act (Old)

2. TDS/TCS Rationalization & Compliance Ease

3. Encouraging Voluntary Compliance

Indirect Tax Proposals

3. Improved access to life saving medicines

Enforce repayment discipline.

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