Union Budget India 2025-26:Welfare focus,Tax surprises & Bihar’s Big Boost

 India’s Union budget for FY 2025-26 was presented in the parliament on Saturday, February 1, by Finance Minister Nirmala Sitaraman. Sitaraman began the budget speech by quoting Telugu poet  Shri Gurajada Appa Rao's famous saying,

                        

          “A country is not just its soil; a country is its people.”

 

With the theme "Sabka Vikas" the budget proposed developments spanning ten broad areas focusing on the Poor(garib), Youth(yuva), Farmer(annadata), and Women(nari). The budget continues efforts to accelerate growth, secure inclusive development, promote private investments, uplift household sentiments, and enhance the spending power of Indian middle class. Our 4 powerful engines for development are agriculture, MSMEs, investment, and exports. 

But beyond the headlines, what does Budget 2025 truly offer—who benefits the most, what’s the big tax surprise, why is Bihar at the centre of major investments, and how does the government plan to balance its books?

 

·       Agriculture and allied activities

 

Agriculture being the largest contributor to GDP of the country, Government has introduced the PM Dhan-Dhaanya Krishi Yojana , a new Agri District programme covering 100 districts to boost agricultural productivity and benefit 1.7 Crore farmers. 

Additionally, A six-year mission focussing on Tur, Urad and Masoor, with procurement by NAFED (National Agricultural Cooperative Marketing Federation of India) & NCCF(National Cooperative Consumer’s Federation of India) has been introduced to achieve self-sufficiency in pulses. Advanced research and commercialization will be carried out to develop 100 + varieties of high-yielding seed. India being the second largest fish-producing country in the world, the government decides to boost its production further by creating sustainable fishing economic zones in Andaman, Nicobar and Lakshadweep islands.

 

·        MSMEs and Startups

 

MSMEs being the backbone of economy, the budget updated classification criteria for MSMEs to promote expansion and stimulate economic activities.

Following is the updated criteria :

 

Enterprise Type	Investment Limit (₹ Crores)	Turnover Limit (₹ Crores)
Micro	Up to 2.5	Up to 10
Small	Up to 25	Up to 100
Medium	Up to 125	Up to 500

 

With a vision to be global start up hub, financial support of Rs.10,000 Crore has been allocated for setting up and expansion of startups.

·        Education and Skilling and Gig worker welfare 

 

Renewing the focus on skilling and innovation, the Budget announces expansion of IITs and promises to raise 75000 medical seats in next 5 years. Emphasizing digital learning, 500 crore rupees will be invested in ‘Centre for Excellence in AI’

Acknowledging the rising gig economy, Budget introduces welfare measures like identity cards for gig workers including social security benefits, insurance coverage, and financial support via  E-Shram registration and PMJAY. Several flagship government schemes have been revamped with enhanced allocations and structural improvements to ensure better reach and efficiency.

 

 

·        Reforms in tax regime

 

 There are many surprising reforms in direct and indirect tax regime.36 new drugs were added to the exempt list along with 6 medicines included in 5 % duty category

The personal income tax system has been revised benefiting the middle class and income upto 12 lakh is made tax free aiming to increase the personal disposable income and ultimately the money flow in the economy. The TDS (tax deducted at source) and TCS (tax collected at source) have also been revised benefiting the citizens.

Here are the proposed income tax slabs under new tax regime

Income tax slabs(Rs)	Income tax rate (%)
From 0 to 4 lakh	0
From 4 lakh to 8 lakh	5
From 8 lakh to 12 lakh	10
From 12 lakh to 16 lakh	15
From 16 lakh to 20 lakh	20
From 20 lakh to 24 lakh	25
From 24 lakh & above	30

 

 

·        Bihar’s big boost

 

With Bihar’s elections approaching by, the state has earnmarked several infrastructural projects .A Makhana Board will be established to enhance the production, processing, and marketing of makhana, benefiting local farmers and the food industry. Additionally, Bihar’s irrigation sector will receive a boost through financial support under the Western Kochi Canal Project. The state will also see major infrastructure upgrades with the construction of a new airport and the expansion of Patna Airport, improving connectivity and fostering regional growth.

·        Where rupee comes from and where it goes?

                                                                 

 

 

 

To sum up, the Union Budget 2025-2026 will impact everyone from a tax payer ,an investor, a student to a senior citizen. With its multifaceted approach centered on welfare, tax reforms, and targeted regional investments, the budget represents a decisive step toward realizing India’s vision of a 5-trillion economy. Ultimately, its success will depend on effective implementation and the ability to convert policy into tangible progress.

 RESOURCE:  Budget Speech on Mint’s YouTube Channel