Topic 8: UNION BUDGET 2025 HIGHLIGHTS

• TAX REFORMS

• Income Tax Changes: The budget raises the income tax exemption limit to ₹12 lakh, meaning individuals earning up to this amount will not pay any income tax under the new regime.
• Standard Deduction: A standard deduction of ₹75,000 is introduced for incomes up to ₹12.75 lakh. • TDS/TCS Rationalization: The TDS threshold for senior citizens on interest income is increased from ₹50,000 to ₹1 lakh, and the threshold for rent is raised from ₹2.4 lakh to ₹6 lakh.

• AGRICULTURE AND RURAL DEVELOPMENT

• Investment of ₹1.52 lakh crore: Focused on modernizing agriculture and rural development.
• Kisan Credit Card Expansion: Loan limits increased to ₹5 lakh to improve financial access for farmers.
• PM Dhan Dhanya Krishi Yojana: Aims to enhance crop diversification and irrigation in low-productivity districts

• HEALTHCARE

• Allocation of ₹98,311 crore: Emphasizing accessibility and affordability.
• Ayushman Bharat Expansion: ₹4,200 crore allocated for extending health insurance coverage.
• New Cancer Care Centre’s: 200 daycare cancer centre’s to be established in district hospitals. • DEFENCE
• Defence Budget of ₹6.81 lakh crore, 9.53% increase focused on modernization and self-reliance
• Domestic Procurement Focus: 75% of capital procurement will be sourced from domestic manufacturers.

• INFRASTRUCTURE DEVELOPMENT

• ₹12 lakh crore allocated: For infrastructure projects including roads, railways, and airports.
• Maritime Sector Development: ₹25,000 crore earmarked for shipbuilding and port infrastructure.
• Government will provide ₹1.5 lakh crore in 50-year interest-free loans to states specifically for capital expenditure projects.

• EDUCATION AND SKILL DEVELOPMENT

• Investment in AI and Research: ₹500 crore allocated for AI research initiatives.
• Expansion of Medical Seats: Additional medical seats planned with a target of 75,000 over five years.
• Establishment of 50,000 Atal Tinkering Labs in government schools and additional medical college seats planned.

• FISCAL STRATEGY

• Fiscal Deficit Target: Set at 4.4% of GDP for FY 2025-26, down from a revised estimate of 4.8% for FY 2024-25.
• Total Expenditure: Estimated at ₹50.65 trillion with government receipts projected at ₹34.96 trillion.

• SUPPORT FOR STARTUPS AND MSMES
• Special provisions aimed at enhancing support for startups and micro, small, and medium enterprises (MSMEs) to drive innovation and economic growth.
• Emphasis on enhancing manufacturing capabilities and integrating MSMEs into global supply chains through dedicated export promotion initiatives.



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