Union Budget 2025 Highlights: No reduction in public spending on capital expenditure, says Finance Minister

The total allocation for the Women and Child Development Ministry is ₹26,889 crore. This is an increase from a Revised Estimate of ₹23,182 last year. The allocation in the last budget had been ₹26,092 crore.

In order to facilitate financial independence for women, the budget also announced a new scheme under which five lakh women would be provided entrepreneurship loans of up to two crore for the next five years.

The Supreme Court has been allocated ₹123.75 crore in the 2025-26 financial year for expansion of its building, Union Finance Minister Nirmala Sitharaman announced in her Budget speech on Saturday.

In the 2024-25 fiscal, the Union Budget had earmarked ₹46.63 crore for the expansion project.

Data from a post poll survey by Lokniti-Centre for the Study of Developing Societies (CSDS) published by The Hindu last year, showed a 3% shift among middle class voters away from the BJP in the 2024 general election, from 38% in 2019 to 35% in 2024; this loss fell into the Congress’s kitty. While the July 2024 Budget did not reflect this learning, very clearly, the February 2025 Budget has.

While the tax rejig came just in time for Delhi which will vote in a few days on February 5, there seemed to be some advance planning for Bihar, the other State that is set to go to the polls later this year, and which isruled by the BJP and its ally, the Janata Dal (United).

If budgetary proposals are anything to go by, the decadal census is unlikely to be carried out in 2025 as well with a meagre ₹574.80 crore allocated for the exercise in the Budget presented on Saturday (February 1, 2025). 

A meeting of the Union Cabinet on December 24, 2019, approved the proposal for conducting a census of India 2021 at a cost of ₹8,754.23 crore and updating the National Population Register (NPR) at ₹3,941.35 crore. 

Finance Minister Nirmala Sitharaman said that the new income tax bill, which will be presented in the Parliament next week, will be referred to a Standing Committee.

Finance Minister Nirmala Sitharaman said the Union Budget presented earlier on Saturday that it focuses both on rural prosperity and urban development, particularly on workers. Ms. Sitharaman added that the Budget also continues to focus on reforms. 

The Finance Minister, addressing a press conference, said 1 crore more people will pay no income tax after the increase in limit of income tax rebate to ₹12 lakh in FY26 Budget.

“With the rejig in the Income Tax slab rates, the Centre has put more money in the hands of people”, said Nirmala Sitharaman.

Finance Minister Nirmala Sitharaman said that there would be no reduction in public spending on Capital Expenditure.

“There is no reduction in the public spending on capital expenditure. We continue to place emphasis on the multiplier effect that capital expenditure done by government has shown has sustained us. We continue on that, and with all this, our fiscal prudence has been maintained...”

The Finance Minister said that there would be two amendments made – to the Atomic Energy Act and to Civil Liability for Nuclear Damage Act – aimed at achieving energy security.

Finance Minister Nirmala Sitharaman, hours after presenting the Union Budget in the Parliament, addressed a press conference on Saturday. She said, “This Budget prioritised education and healthcare.”

Ms. Sitharaman added that more medical seats had been made available.

Union Finance Minister Nirmala Sitharaman observes that energy security has had greater attention in this budget, in continuation to her July 2024 budget. 

Another important announcement, she notes, is that Insurance Sector FDI limits have been enhanced. 

“There is no reduction in public spending in Capital Expenditure,” Ms. Sitharaman reiterates, adding that the fiscal prudence has aligned itself to the glide path announced in 2021. 

The income tax simplification is already completed in its works, Union Finance Minister Nirmala Sitharaman said, adding that the corresponding bill for the same will be brought in next week. 

This budget also speaks of rationalisation in customs, the Finance Minister notes. “Tariffs are being brought down, tariffs are being simplified, and the basket of tariffs for different commodities has been reduced.”

She remarks that proposals in budget, in the case of agriculture, speak of everything from beej (seed) to bazaar (market). This, she says, is in line with the goal of making India the world’s food basket. 

In her opening remarks made in the post-Budget conference, Union Finance Minister Nirmala Sitharaman noted that the Budget says several things about the country’s path towards Viksit Bharat. “It has invested in agriculture, looked at rural prosperity, focuses on urban development particularly looking at urban workers, and continues to lay emphasis on reforms.”

Interest of education and health have been prioritised, Ms. Sitharaman said, adding that the approach in this budget has been pointed on areas which need immediate intervention, outlays and action along with State. 

The Centre has allocated ₹1,071.05 crore to the Central Bureau of Investigation in the Union Budget 2025-26 announced by Finance Minister Nirmala Sitharaman on Saturday, a nominal increase of ₹84.12 crore from the ongoing fiscal.

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Despite announcing that no income tax needs to be paid up to an income of ₹12 lakh under the new regime, the government is still expecting the share of income tax in gross tax collections to increase in the financial year FY26. In contrast, the share of receipts from corporate tax in the gross tax collections is expected to slightly decline in FY26. 

Finance Minister Nirmala Sitharaman presented the ​Union Budget​ for 2025-26, unveiling the eighteenth Cabinet’s plans for funding the integration of Artificial Intelligence (AI) in various fields. Allocations for all schemes related to AI have seen significant increases since the previous Union Budget.

​Read more on this here...​

“To create a vibrant, competitive environment for investment in States, we have especially focussed on this in the budget. It has also been announced that credit guarantee will be doubled for MSMEs and Start-up. Country’s SC, ST, and women who want to start their businesses have also been offered support.”

“This budget has also considered the new-age economy and announced crucial measures for gig workers. For the first time, gig workers will be registered on E-shram portal, following which they will be able to access several social security benefits. This is a reflection of the government’s commitment to dignity of labour.”

“From regulatory reforms to financial reforms, they all reflect our commitment to minimum government and trust-based governance. This budget not only takes into consideration the nation’s current needs, but also helps us prepare for the future.”

“I once again congratulate the nation on this historic people’s budget”

“In the budget, income tax has also been exempted for those earning up to ₹12 lakh. For all income groups, tax rates have been slashed. This will greatly benefit our middle class, salaried class, fixed income individuals. Accordingly, freedom from income tax will be a huge opportunity for those who are newly employed.”

“The budget has 360 degree focus on manufacturing, so that entrepreneurs, MSME, small manufacturers are strengthened and new jobs are created. From National Manufacturing Mission, to clean tech to toy industry, the budget has given support to many industries. The goal is clear: Indian products should shine in the global market.”

“The country is moving forward with the mantra of Vikas (development) bhi, Virasat (heritage) bhi. In this budget, we have taken important decisions for the same. For 1 crore manuscripts, Gyan Bharatam mission has been launched. Also, we have announced setting up of National Digital Repository.”

“The announcements made for farmers in this budget will bring about a revolution in the field of agriculture. Kisan Credit Card’s limit being enhanced will help the farmers.”

“This budget has taken many steps towards reform. The decision to give boost to private sector in Nuclear energy is historic. It will ensure big participation of civil nuclear energy in the country’s progress. The Budget has also prioritised on increasing employment.”

“Atma Nirbhar Bharat will gain speed through shipbuilding. The country also holds many opportunities for tourism. Accordingly, for the first time focus has been on bringing hotels and hospitality sector under infrastructure as part of the budget”

“This budget is a force multiplier. It will increase savings, investments, consumption, and lead to growth,” Mr. Modi said. 

“Usually the budget’s focus is on how the government will fill its coffers. This budget is the complete opposite of that. In this budget, the focus is on filling the pockets of the citizens, increasing their savings.”

In his remarks following the Budget presentation, Prime Minister Narendra Modi said that this budget fulfils the dreams of many Indians. 

“We have opened many sectors for the youth. Now the common man will drive the mission of Viksit Bharat.”

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Benchmark indices Sensex and Nifty remained volatile after the Union Budget presentation as investors saw little coming in from the Finance Minister Nirmala Sitharaman for retail investors and the overall markets.

Stock indices opened with gains and traded in the positive territory during the Budget presentation. However, soon after Sitharaman completed her Budget speech in Parliament, the 30-share BSE benchmark Sensex declined 494.1 points to 77,006.47 in the late afternoon trade. The NSE Nifty went lower by 162.35 points to 23,346.05.

Later, Sensex pared losses to trade sideways at 77,509.90 while Nifty was at 23,495.30. Both benchmarks had rallied for the past four trading days.

The markets were open on Saturday due to the presentation of the Union Budget.

From the 30-share blue-chip Sensex pack, Bajaj Finserv, UltraTech Cement, Larsen & Toubro, Power Grid, Tata Steel, and State Bank of India were the major laggards.

Zomato, Maruti, ITC, Mahindra & Mahindra, and Titan were among the biggest gainers.

- PTI

Kerala’s demands for ₹2,000-crore prop-up for rehabilitation in landslide-hit Wayanad, an AIIMS-equivalent facility and State-specific packages to tackle human-wildlife conflict and emerging climate change-related challenges find no place in Budget.

The government on Saturday allocated ₹6,81,210 crore for the defence budget for 2025-26, up from last year’s outlay of ₹6,21,940 crore.

The total capital outlay has been pegged at ₹1,92,387 crore.

The revenue expenditure has been put at ₹4,88,822 crore, including ₹1,60,795 crore for pensions.

Under capital expenditure, ₹48,614 crore has been set aside for aircraft and aero engines while ₹24,390 crore has been allocated for the naval fleet.

An amount of ₹63,099 crore has been set aside for other equipment.

-PTI

Union Finance Minister Nirmala Sitharaman has once again laid out customs duties and import tariffs changes for the upcoming fiscal year. These changes make some items costlier and others cheaper as the relevant tariff rates increase or decrease. 

Click here to know what will get cheaper and costlier as laid out in the Budget for 2025-26.

Union Finance Minister Sitharaman announced that 50,000 Atal Tinkering labs will be set up in government schools in the next five years “to cultivate the spirit of curiosity and innovation and foster a scientific temper among young minds.” She also said that broadband connectivity would be provided to all government secondary schools and primary health centres in all rural areas under the Bharat Net Project.

Read more on​ what the Budget carried for Skilling, schools ​

Bihar featured prominently in Finance Minister Nirmala Sitharaman’s Budget speech as she announced a slew of schemes for the state. A ​​new Makhana Board​​, National Institute of Food Technology, Entrepreneurship and Management were announced. Apart from these, greenfield airports will be added in addition to the expansion of Patna airport and the West Kosi canal project in Mithilanchal was also announced.

Read more on ​​what the State got in this budget​​

Borrowings and other liabilities form the largest chunk of where money flows in from for this Budget, at 24%, last year it was 27%. At the second spot is income tax at 22% (previous year 19%), followed by inflow from GST and other taxes at 18%, same as 2024-25. Corporation tax also makes up a significant chunk at 17%. Non-tax revenue, union excise duties, customs and non-debt capital receipts is where the government gets the rest of its budget money from.

Click here to know more on where does the money come from and go in this budget

Following the Budget speech, the Finance Minister moves to table the following statements:

• Medium-term Fiscal Policy cum Fiscal Policy Strategy Statement
• Macro-economic Framework Statement.

She also introduces the Finance Bill, 2025.

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. 

With this, Speaker Sir, I commend this Budget to this August House, Ms. Sitharaman says. 

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%

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 tax payers due to the standard deduction of ₹75,000. Slabs and rates are being eased across the board, Ms. Sitharaman says. 

Other tax provisions announced by Ms. Sitharaman in her budget speech included:

• The compliance burden for small charitable trusts is being reduced by giving them 10 years for registration instead of 5 years.
• Taxpayers can claim annual value of self-occupied homes as nil only on certain conditions. This will now be allowed for two such properties without any conditions.

• With a view to reduce litigation and provide certainty in international taxation, the scope of safe harbour rules is being expanded.

• Senior citizens with very old National Savings Scheme accounts that are not attracting interest anymore, will be allowed to withdraw their savings without any tax.

• To promote investment and employment, it is proposed to provide a presumptive taxation scheme to non-residents who provide services to manufacturing of electronics.

• The tonnage tax scheme is only available to sea-going ships, and will be extended to inland vessels to promote inland water transport in the country.

• For startups, propose to extend the period of incorporation by 5 years to those that are incorporated by 2030.

Propose to rationalise TDS and TCS by reducing the number of rates and the thresholds at which TDS is deducted.

The limit for TDS on Interest for senior citizens is being doubled from ₹ 50,000 to ₹ 1 lakh.

TDS threshold on annual rent is being raised from ₹1 lakh to ₹6 lakh.

TCS limit on LRS remittances being raised from ₹7 lakh to ₹10 lakh.

Both TDS and TCS are being applied on any transaction related to sale of goods. To prevent such compliance difficulties, propose to omit TCS and apply higher TDS deductions only on non-PAN cases.

“I am happy to inform that the new Income Tax Bill will carry the spirit of Nyaya,” says Ms. Sitharaman on Direct Tax. “It will be simple for taxpayer and tax administrators leading to tax certainty and less litigation.”

Objective of proposals: 

• Personal Income Tax reforms with special focus on middle class.
• Rationalisation of TDS and TCS for easing difficulties
• Encouraging voluntary compliance
• Reducing compliance burden
• Ease of doing business
• Employment
• Investment

Propose to fully exempt cobalt powder, and waste, scrap of lithium iron battery, lead, zinc and 12 more critical minerals. 

To promote domestic production of technical textiles at competitive products, propose to add two more types of shuttle-less looms to the exemption list from import duty.

In line with Make In India, propose to raise BCD from 10% to 20% on Flat LED TV panels.

35 more capital goods will be added to the exempt list for Lithium ion batteries and 28 items for mobile phones.

Propose to reduce BCD on carrier-grade internet switches to 10% from 20%.

Propose to add nine items to the list of duty-free inputs.

Presently, time limit for provisional assessment is not provided under the current Customs Act, leading to uncertainty and cost to trade. Propose to fix a time limit of 2 years, extendable by 1 year, for provisional assessments.

For industry to better plan their imports, the time limit for end use of those imports is being raised from 6 months to 1 year.

To provide relief to patients suffering from cancer and rare diseases, 36 life saving drugs are being added to the list of fully exempted from customs duty. I also propose to add six life saving medicines to the list of concessional customs duty.

Specified drugs and medicines under patient assistance programs run by the pharma companies are fully exempt from BCD. I propose to add 37 more drugs and 13 more patient management programs under this.

Proposals relating to customs aim to rationalise tariff structure and avoid duty inversions, Ms. Sitharaman announces. 

For industrial goods, the Finance Minster announces:

1. Removal of seven tariff rates. “After this, there will be only 8 tariff rates including zero rate.”
2. Apply appropriate cess to broadly maintain effective duty incidents except on a few items.
3. Levy not more than one cess or surcharge. Propose to exempt Social Welfare Surcharge on 82 tariff lines.

• Total receipts other than borrowing: ₹34.96 lakh crore

• Total expenditure: ₹50.65 lakh crore 

• Fiscal Deficit: 4.4% of GDP. To finance the fiscal deficit, the net market borrowings from dated securities are estimated at ₹11.4 lakh crore.

Total receipts other than borrowing: ₹31.47 lakh crore 

Total expenditure: ₹47.16 lakh crore 

Fiscal Deficit: 4.8% of GDP

Announcing the fiscal policy for this year’s Budget, Ms. Sitharaman says that the roadmap for the next 6 years for fiscal consolidation has been detailed in the FRBM statement.

In order to reform regulatory framework, making it more people-friendly, Ms. Sitharaman announces four measures:

• A high-level committee for regulatory reforms for a review of all non-financial sector regulations, certifications, licences and permits. The Committee will be expected to make recommendations within a year to drive trust-based regulations.
• Investment-friendliness index of States will be launched in 2025
• Mechanism will be set up to evaluate impact of current financial regulations and subsidiary instructions.

• In the Jan Vishwas Act, 2023, more than 180 legal provisions were decriminalised. A new bill Jan Vishwas 2.0 will be moved to decriminalise another 100 provisions.

Announcing reforms in the Financial Sector, Ms. Sitharaman said that the FDI limit in the insurance sector will be enhanced from 74% to 100%, for companies that invest their entire premium in India.

The services of India Post Payment Bank will be deepened and expanded in rural India.

Public sector banks will develop a Grameen credit score framework. A forum for regulatory coordination and development of pension products will be set up.

A revamped central KYC registry will be rolled out in 2025, and we will also streamline the process for speedier re-KYCs .

Bilateral investment treaties were signed with two countries in 2024. To encourage more investment, the current BIT will be revamped and made more investor-friendly.

Speaking on “reforms as the fuel”, for the four engines mentioned previously in her speech, Ms. Sitharaman notes that over the past 10 years, government has implemented several reforms for convenience of taxpayers.

“I reaffirm the commitment of the tax department to ‘Trust First and Scrutinise Later’. I also propose to introduce a new Income Tax Bill next week.”

Expanding on the government’s allocation of Exports as fourth engine to driving the goal of Viksit Bharat, Ms. Sitharaman announces setting up an export promotion mission, driven by the Ministries of Commerce, MSMEs and Finance, that will support easier access to credit and help MSMEs to deal with non-tariff barriers.

Digital Public Infrastructure -- Bharat Trade Net -- for international trade will be set up for trade documentation and financial solutions. 

A national framework will be formulated as guidance to States for promoting Global Capability Centres in emerging tier-2 cities.

Announcing measures to promote “Investing in Innovation”, Ms. Sitharaman announces an allocation of ₹20,000 crores. 

A DeepTech Fund of Funds will also be explored to catalyse the next generation startups.

10,000 fellowships to be provided for technological research in IITs and IISC with enhanced financial support. 

National geo-spacial mission to be set up to develop foundational geo-spacial infrastructure and data. 

Gyan-Bharatam Mission for survey, documentation, and conservation of manuscripts heritage will be undertaken to cover 1 crore manuscripts.

Top 50 tourism sites to be developed with States in a challenge mode. Hotels under this programme will be included in the infrastructure harmonised list.

Measures will be taken for facilitating employment-led growth which will include: Organising intensive skill development programs in institutes of hospitality management.​ Providing Mudra Loans for homestays​, Providing PLIs to States for effective destination management, including tourist amenities and marketing efforts, and will include e-visa facilities for some tourists.

Medical tourism and Heal In India will be promoted in partnership with the private sector along with capacity building and easier visa norms.

Mining sector reforms, including those for minor minerals, will be encouraged through sharing of best practices and the institution of a State Mining Index, Ms. Sitharaman says in her Budget speech. 

A policy of recovering critical minerals from tailings will be brought out. 

The UDAAN regional connectivity scheme, Ms. Sitharaman says, has enabled 1.5 crore middle class people to make their aspirations for speedier travels. 

A modified Udaan scheme will be launched to enhance regional connectivity to 120 new destinations and carry 4 crore passengers in the next 10 years. The scheme will also support helipads and smaller airports in hilly and aspiration districts. 

Greenfield airports will be facilitated in Bihar to meet the future needs of the State. These will be in addition to expansion of Patna airport.

Western Kosi canal project in Mithilanchal will be given financial support that will benefit a large number of farmers in Bihar.

Ship building financial assistance policy will be revamped to address cost disadvantages, which will also include credit notes for ship-breaking in Indian yards to promote the circular economy. 

For long term financing of maritime industry, a Maritime Development Fund with a corpus of ₹25,000 crore will be set up. This will have up to 49% of contribution from the government and the balance will be from ports and the private sector.

Development of at least 100 GW of nuclear energy by 2047 is essential for our energy transition efforts, Ms. Sitharaman said. 

For an active participation of​ private sector in this sector​, amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act will be taken up.

Nuclear Energy Mission for R&D of small, modular reactors with an outlay of ₹20,00 crores will be set up. At least five indigenously developed, small modular reactors will be operationalised by 2033.

We will incentivise electricity distribution reforms by States, Ms. Sitharaman said while speaking on power sector reforms . “An additional borrowing of 0.5% of GSDP will be allowed to States contingent on these reforms.”

Building on the July Budget proposals, Ms. Sitharaman says in her Budget speech, urban sector reforms will be incentivised through an Urban Challenge Fund of ₹1 lakh crore to implement proposals for creative redevelopment of cities and Cities as growth hubs, and for water and sanitation projects. 

This fund will finance upto 25% of the cost of bankable projects, with a stipulation that at least 50% of the funding is secured through bonds, bank loans and PPPs. Allocation of ₹10,000 crores proposed. 

Speaking on​ the Jal Jeevan Mission​, Ms. Sitharaman informs that since 2019, the mission has benefited 15 crore households with potable tap water connections. 

To achieve 100% coverage by 2028 in rural India, from the current 80%, the outlays will be enhanced, she announced. 

Expanding on the government’s plans to “Investing in the Economy”, Ms. Sitharaman announces that each infrastructure ministry will come up with a three-year pipeline of projects to be developed in PPP mode.

An outlay of ₹1.5 lakh crore is proposed for States’ infrastructure spending through 50-year interest free loans.

Second Asset Monetisation plan for 2025 -2030 to plough back capital of ₹10 lakh crore in new projects. 

To assist Urban Poor and vulnerable groups, a scheme for socio-economic development for urban workers will be launched.

PM SVANidhi, which has benefitted more than 68 lakh street vendors, ill be revamped with enhanced loans and UPI-linked credit cards, and capacity building support. 

Online platform workers or gig workers provide great dynamism to the new-age services economy, Ms. Sitharaman said, adding that the government will arrange for ID cards for them with registration on the E-shram portal and give them health cover. This will benefit 1 crore gig workers.

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.

The government will also focus on expansion of medical education. Ms. Sitharaman notes that the government has added 1.1 lakh UG and PG seats in 10 years. In the next year, 10,000 additional seats to be added in medical education.

“Our government will facilitate setting up day-care Cancer centres in all district hospitals in the next three years, with 200 centres to be established in 2025-26 itself.”

Investment - the third engine, Ms. Sitharaman says encompasses investing in people, economy and innovation.

Investing in People: ​Saksham Anganwadi and Poshan 2.0 ​provides nutritional support to over 8 crore children and 1 crore pregnant women, mothers and 20 lakh adolescent girls. The cost norms will be enhanced in the scheme.

50,000 Atal Tinkering labs will be set up in government schools in the next five years. 

Broadband connectivity to be provided to all government secondary schools and primary centres in all rural areas. 

A Bharatiya Bhasha Pustak scheme to be implemented for Indian language books for schools and higher education.

Five National centres of excellence for Skilling will be set up with global expertise and partnerships, building on announcements made in July 2024 budget.

IITs’ capacity will be expanded. Total number students in 23 IITs has increased 100% from 65,000 to 1.35 lakh in the past 10 years. Additional infrastructure will be created in the five IITs started after 2014 and IIT Patna will also be expanded.

Ms. Sitharaman, in her budget speech announced the setting up of a National Manufacturing Mission for small, medium and large industries to further Make In India.

The mission will also support clean tech manufacturing and will help build our ecosystem for solar cells, EV batteries, motors, controllers, wind turbines, grid-scale batteries etc.

For Labour-intensive sectors, to promote employment, our government will undertake specific policy and facilitation measures, says Ms. Sitharaman during her budget speech. 

For the footwear and leather sector, a Focus Product scheme will be implemented. The scheme is expected to generate 22 lakh jobs. 

For the toy sector, we will implement a scheme to make India a global hub of toys. 

For food processing, we will establish a National Institute of Food Technology, Entrepreneurship and Management in Bihar. “This will result in enhanced income for farmers through value addition and skilling, entrepreneurship and employment opportunities for the youth.”

MSMEs are the second engine which encompasses manufacturing and services, with a focus on MSME numbering 5.7 crores. 

“Currently, over 1 crore registered MSMES, generating 36% of our manufacturing have come together to position India as a global manufacturing hub,” Ms. Sitharaman says. 

“These MSMEs are responsible for 45% of our exports. To help them achieve higher efficiencies of scale, technological upgradation, get better access to capital, the investment and turnover limit for classification of all MSMEs will be enhanced to 2.5 and 2 times respectively.”

To improve access to credit, the credit guarantee cover will be enhanced, which will also include Start-ups. 

Fund of Funds for Startups - Alternative investment funds have received commitments of more than ₹91,000 crore. Now a new Fund of Funds with expanded scope and a fresh contribution of another ₹10, 000 crore will be set up. A new scheme will be launched for 5 lakh women Scheduled Caste and Schedule Tribe first-time entrepreneurs.

Proposals for agriculture:

PM Dhan Dhanya Krishi Yojana, a developing agri-districts programme, will cover 100 districts. 

A national mission for high yielding seeds will be launched. 

A comprehensive program for vegetable and fruits will also be launched in partnership with States. 

Makhana Board to be set up in Bihar.

India ranks second largest globally in fishery products. “Our government will bring an enabling framework for sustainable harnessing of fisheries in India’s economic zone.”

Mission for Cotton productivity will facilitate significant improvement in cotton farming. 

Kisan credit cards facilitate short term loans for 7.7 crore farmers, fishermen and dairy farmers. The loan limit will be enhanced from ₹3 lakh to ₹5 lakh.

For Atmanirbharta in urea production, a plant with annual capacity of 12.7 lakh metric tonnes will be set up in Assam.

India Post with 1.5 lakh rural post offices, complemented by the India Posts Payment Bank, will be repositioned to act as a catalyst for the rural economy. India Post will also be transformed as a large public sector logistics organisation to meet rising needs.

Read more on the six-year mission for edible oils and pulses announced

Opposition parties walked out of Lok Sabha to register their protest after their demand to discuss Mahakumbh stampede was not accepted.

To realise the goal of Viksit Bharat, this budget focuses on transformative reforms across six domains. These are: 

1. Taxation
2. Power sector
3. Urban development
4. Mining
5. Financial sector
6. Regulatory reforms

Ms. Sitharaman moves on to stating the proposed development measures in the budget. 

These span 10 broad areas, focusing on gareeb, youth, annadata, and naari.

1. Spurring Agricultural growth
2. Building rural prosperity and resillience
3. Taking everyone together on an inclusive growth path
4. Boosting manufacturing
5. Supporting MSMEs
6. Enabling employment-led development
7. Investing in people, economy and innovation
8. Securing energy supplies
9. Promoting exports
10. Nurturing innovation

Answering the question what Viksit Bharat encompasses, Ms. Sitharaman says: 

• Zero poverty
• 100% quality, good school education
• Access to high quality, affordable and comprehensive healthcare
• 100% skilled labour with meaningful employment
• 70% women in economic activities
• farmers making India the food basket of the world

Stating that the Indian economy is the fastest growing among all major economies, Ms. Sitharaman adds that the development track record and structural reforms have drawn global attention. “We see the next 5 years as a unique opportunity to realise Sabka Vikas -- stimulating balanced growth of all regions”

Sitharaman cites continuing geopolitical headwinds as a reason for lower global economic growth over the median term. “However, our aspiration for a Viksit Bharat inspires us and the transformative work we have done in previous terms guides us to march forward resolutely.”

Union Finance Minister Nirmala Sitharaman commenced her eighth consecutive budget speech stating that this budget continues the government’s efforts to:

• accelerate growth
• secure inclusive development
• private investment
• uplift household sentiment
• enhance spending power of India’s rising middle class

The second day of Budget Session 2025 is under way in the Lok Sabha, where Nirmala Sitharaman will present the Union Budget today.

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Congress’ Jairam Ramesh, in a reaction ahead of the Budget presentation, said that the they “don’t have much expectations from the budget that some big announcements will be made and that will encourage private investment.”

The Union Cabinet, in a meeting held in Parliament ahead of the Budget presentation, approved the Union Budget 2025-26 proposal.

The document will now be presented by Finance Minister Nirmala Sitharaman at 11 a.m. 

Sensex rallies 136.44 points to 77,637.01 in opening trade ahead of Budget presentation; Nifty up 20.2 points to 23,528.60

​-​ PTI

Union Finance Minister, along with her team, seen outside the North Block, as she proceeds to leave for the Rashtrapati Bhavan. 

Photo: YouTube/@SansadTV

​ ​Ms. Sitharaman ditched the colonial legacy of a Budget briefcase for the traditional bahi-khata to carry Union Budget papers in July 2019.

She used the same the following year, and in 2021, she swapped traditional papers with a digital tablet for carrying her speech and other Budget documents. That tradition has continued this year as well.

She used a red cloth folder enclosed with a string and emblazoned with the national emblem to carry Budget documents.

“Why did I not use a leather bag to carry budget documents? I thought it is high time we moved on from the British hangover, to do something on our own. And well, easier for me to carry too,” she had said in 2019 after presenting her maiden Budget in 2019.

Union Finance Minister Nirmala Sitharaman has arrived at the North Block, which houses the Ministry of Finance, ahead of the presentation of the Union Budget 2025.

Following this she will proceed to meet with the President at the Rashtrapati Bhavan. 

All eyes will be on Union Finance Minister Nirmala Sitharaman when she takes centre stage on February 1 to present the Union Budget.As the nation grapples with increasingly frequent extreme weather events and mounting pressure to meet its climate commitments, the FY26 Budget carries the weight of both urgency and opportunity. With just five years left to achieve India’s first interim Net-Zero target, the Budget must take decisive steps to protect those on the frontlines of climate change.

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The Union Budget as a turning point for climate action

The Union Budget must prioritise key policy measures to strengthen India’s climate response and accelerate progress on both adaptation and mitigation fronts

A cut or tweak in income tax rates/slabs to ease the burden of the middle class struggling with high prices and stagnant wage growth is widely expected in Finance Minister Nirmala Sitharaman’s record-setting eighth consecutive Budget.

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India must harness its “best resources, advanced technologies, and expertise” to becoming a developed nation by 2047 while ensuring a low-carbon pathway. However, it shouldn’t shut its coal-fired plants “without adequate alternatives,” the Economic Survey noted.

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Watch the highlights of the Economic Survey 2024-25

Watch: Highlights of Economic Survey 2024-25

Key points in the Economic Survey 2024-25

With Budget FY 2025-26 scheduled to be presented on February 1, here is a look at some of the recently launched schemes, older schemes with significantly reduced funding, schemes under the Production Linked Incentive (PLI) umbrella, and those promoting electric mobility in India.

Read the full data story:

Union Budget 2025: 37 old and new schemes to look out for on Budget day

Preview of Budget FY2025-26 schemes: new, reduced funding, PLI, electric mobility initiatives in India. Clear breakdown in tables.