01/02/2025
Key Union Budget Announcements - 2025
➡ No tax till INR 12 lakh income.
➡ Transformative reforms in 6 sectors which will set trends for next 5 years:
-Six sectors are:
* Power
* Mining
* Urban developments (covers water sector)
* Financial sector
* Regulatory reforms
* Taxation
➡ Dhan Dhanya Krishi Yojna
* Kisan Credit Card limits for farmers, fisherman etc. increased from 3 lakh to 5 lakh.
* 6 year mission for pulses.
* Agri plan to cover 100 districts with low productivity in phase 1.
➡MSMEs
-Focus on 5.7cr MSMEs
* Increase loan guarantees to micro entrepreneurs.
* Loans to startups in 27 focus sectors at 1% guarantee fees.
* Term loans upto 20cr for export MSMEs
* Customized credit cards for Udyam registered MSMEs
* Fund of fund for startups, another 10,000 cr. to be setup
➡ Credit guarantee cover will be enhanced from 2 cr to 5cr for MSME. Startups will have credit guarantee of 10cr to 20cr. Well run MSME: 20cr.
➡ Micro enterprise will have 5lk limit of credit card.
➡ Make India global hub for toys. Development of clusters and manufacturing of toys.
➡ Footwear and Leather sector scheme- to generate employment to 22lk people and generate investment of 4 lakh cr. Exports over Rs 1.1 lakh cr
➡ National Manufacturing Mission for MSME. Support clean tech manufacturing like wind turbines, batteries etc.
➡ Broadband connectivity to be provided to all secondary schools.
➡ Digital form of Indian language book – to understand subject in their language.
➡ Additional infra in the 5 IITs started after 2014, to add 6500 more students.
➡ 10,000 additional medical seats to be added in next 5 years.
➡ There is going to be AI in education with outlay of 500cr.
➡ Govt. will set up of daycare centres for cancer in all districts in the next 3years-- to pose competition for private sector hospitals, though tertiary care (at bigger hospitals) will not have much impact.
➡ PPP for infrastructure. 1.5 lakh Cr interest free loans for 50 years
➡ Registration and ID for gig workers will be provided to make this sector more organized also insurance for them will be provided to them.
➡ Jal Jeevan Mission to be extended till 2028 to achieve 100% coverage with separate O&M contracts under Jan Bhagidhari
➡ Outlay of 1.5 lakh cr for 50 year interest free loan to states that do capex/infra.
➡ Urban challenge fund of 1lk cr to create redevelopment of cities, water sanitation.
➡ Power sector reforms - incentivize inter-state and distribution sector reforms
➡ Nuclear energy mission: Small modular reactors indigenous built to be used. Development of 100GW of nuclear power.
➡ Nuclear Power: Liability clauses will be relaxed, small modular rectors R&D will be promoted.
➡ Ship Building financial assistance policy to be revamped
➡ Maritime development fund with INR 20,000 Cr to be setup
➡ UDAAN regional connectivity scheme: 120 new destinations and carry 4cr additional passengers in next 10 years
➡ Green field airports facilitated in Bihar.
➡ Tourism for employment led growth. 50 destinations to be revamped in cooperation with states.
➡ Medical tourism and heal in India will be promoted under PPP mode. Private hospitals to benefit.
➡ Geo spatial mission: modernization of land record, urban planning.
➡ Outlay of Rs 1.5 lakh cr towards 50-year interest free loans to states to augment infrastructure.
➡ Affordable housing: Another 40,000 units to be completed in FY26.
➡ GCCs in tier 2 cities, will be initiated, to provide employment and also focus to provide relevant skills to people; this will boost the investments from overseas.
➡ Insurance FDI increased from 74% to 100%.
➡ New tax bill to be introduced next week.
➡ Fiscal consolidation - Debt to GDP to be on declining path.
➡ Fiscal Deficit - 4.8% of GDP. Fiscal Deficit for FY26 - 4.4% of GDP. Borrowings to be INR 11.5 trn
➡ FY25 Infra spend RE (revised est.) at INR 10.18 Lakh cr fall short of FY25 BE (budget est.) of INR 11.1 Lakh cr.
➡ Adding 36 life saving drugs to the list of medicines fully exempt from basic duties.
➡ Levy not more than 1% cess surcharge. Remove 82 items for cess surcharge items.
➡ Interactive flat panel displays will see 20% customs (from 10%).
➡ Proposed to continue the exemption of BCD on raw materials, components, consumables or parts for the manufacture of ships for another 10 years.
➡ Full exemption on Lithium Ion batteries - helps EV and battery manufacturer.
➡ Reduce BCD from 30% to 5% on frozen fish feed.
➡ Removal of TDS on remittances for educational purposes.
➡ TDS and TCS will be rationalized at source.
➡ Threshold amount for tax deduction will be reduced.
➡ Senior citizen tax deduction will be increased to 1lk (from 15k).
➡ Time limit to file income tax returns increased from 2 years to 5 years for any financial year.
➡ TDS on rent threshold hiked to 6lk.
