Union Budget 2025, Key Highlights and Impacts

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The Union Budget 2025 as presented by the Finance Minister of India, Ms. Nirmala Sitharaman, grabs all the front pages with her comprehensive forward-looking fiscal plan presentation on February 1, 2025, which is essential to boost growth in the economy and makes easier fiscal management alongside an upgrade for various sectors along with infrastructure technology, etc. In this article, we have covered every aspect of budget time, budget date and time, live streaming details, and other highlights of Union Budget 2025.

Union Budget 2025: Date and Time

The much-anticipated Union Budget 2025 was formally delivered on February 1, 2025. The speech on a budget started at 11:00 AM IST and lasted for nearly two hours. Under Finance Minister Nirmala Sitharaman’s leadership, it was her seventh successive budget presentation under the Modi government. This has established consistency in its fiscal policy and economic planning.

Check here: Economic Survey 2025

Key Highlights of Union Budget 2025

The Union Budget 2025 is not just about numbers; it represents the government’s vision for a resilient and robust economy. Here are the main highlights and sector-wise initiatives announced:

Sector	Key Highlights
Fiscal Management	Fiscal deficit target set at 4.4% of GDP for FY 2025-26. Government borrowing planned at ₹14.82 trillion. Capital expenditure increased by 12% to enhance infrastructure development.
Income Tax & New Tax Regime	No changes in income tax slabs under the new tax regime. Tax exemption limit increased from ₹7 lakh to ₹8 lakh. Standard deduction increased for salaried individuals. Senior citizens get additional tax relief with higher exemption limits.
Agriculture & Rural Development	Increase in MSP (Minimum Support Price) for key crops. New farm credit scheme was introduced to support small farmers. Higher allocation for rural employment schemes under MNREGA.
Infrastructure & Urban Development	₹1.5 lakh crore allocated for infrastructure projects. Expansion of UDAN scheme to 120 new destinations. Increased investments in smart cities and affordable housing projects.
Healthcare & Education	10,000 new medical seats to be added to government medical colleges. Boost in funding for healthcare infrastructure. All government secondary schools to receive broadband connectivity.
MSMEs & Startups	Increased funding for MSMEs to foster job creation. Introduction of ease of doing business reforms for startups. Tax exemptions extended for startups.
Technology & AI Development	₹1.2 lakh crore allocated for AI and Digital India initiatives. Focus on semiconductor manufacturing in India. Incentives for electric vehicles and green technology.
Economic Growth & Fiscal Discipline	Fiscal deficit is set at 4.4% of GDP, aligning with long-term sustainability. Increased capital expenditure is targeted to drive economic growth and development. Focus on inclusive growth through social welfare schemes.
Social Welfare	Tax relief measures for middle and lower-income groups. Increased funding for social security schemes for senior citizens. Allocation for women’s empowerment through various welfare programs.
Foreign Investment & Global Trade	Emphasis on creating an environment for foreign direct investment (FDI) and encouraging global trade relations. Proposals to enhance India’s export infrastructure.
Climate Change & Sustainability	Promotion of green technology. Allocations to support electric vehicle adoption. Focus on renewable energy and environmentally sustainable growth
Defense & National Security	Increase in defense budget to ensure modernized armed forces. Enhanced budget for cybersecurity and border security initiatives.
Skill Development & Employment	Significant investment in skill development programs. Introduction of employment generation schemes targeting youth and unemployed populations.

Summary of Key Budget Proposals

The Union Budget 2025 highlights various dimensions of economic development that include fiscal discipline, infrastructure development, healthcare system, and digital transformation. These measures are towards building resilience in the economy while improving social welfare and propelling technological innovation to shape a sustainable, inclusive future for India. Building on initiatives through sectors, this Budget will pay special attention to creating a business-friendly environment for startups and MSMEs besides propelling the digital revolution and a green economy.

Union Budget 2025 Tax Slabs

The Union Budget 2025 introduced some key changes to income tax slabs, mainly focusing on the new tax regime and providing relief for taxpayers. Here are the key tax slabs under the new and old regimes:

1. New Tax Regime (Revised) for FY 2025-26:

Under the new tax regime, the government has made a few significant changes to provide relief to individual taxpayers.

Income (₹)	Tax Rate
Up to ₹3,00,000	Nil
₹3,00,001 to ₹6,00,000	5%
₹6,00,001 to ₹9,00,000	10%
₹9,00,001 to ₹12,00,000	15%
₹12,00,001 to ₹15,00,000	20%
₹15,00,001 and above	30%

Key Changes

Tax exemption limit is increased from ₹7 lakh to ₹8 lakh.
The tax slabs remain unchanged, but the tax-free income threshold has been raised to benefit middle-class taxpayers.
Standard deduction of ₹50,000 for salaried individuals has been incorporated.
Senior citizens benefit from higher exemption limits.

2. Old Tax Regime for FY 2025-26:

Under the old tax regime, taxpayers can continue to claim various exemptions, deductions, and rebates.

Income (₹)	Tax Rate
Up to ₹2,50,000	Nil
₹2,50,001 to ₹5,00,000	5%
₹5,00,001 to ₹10,00,000	20%
₹10,00,001 and above	30%

Check Here: New Tax Regime vs Old Tax Regime Slabs

Impact of the Union Budget 2025 on the Indian Economy

The Union Budget 2025 is strategically designed to meet both the short-term needs of the economy and long-term growth objectives. Here’s how:

Economic Growth: Capital expenditure will increase and infrastructure projects will be enhanced. This means the government is well-positioned to stimulate economic activity, create employment, and attract foreign investments.
Fiscal Discipline: With a target for the fiscal deficit strictly set, the government maintains fiscal discipline while supporting crucial investments.
Social welfare in terms of tax relief is enhanced and funding for more healthcare and education with rural development initiatives is probably well balanced for inclusive growth.
Innovation and Technology: The budget has provided significant allocations for AI and digital initiatives, setting the stage for a more technologically advanced and competitive economy.

Union Budget 2025 FAQs

What is the new tax regime in 2025?

Enumerating revisions in tax slabs, the Finance Minister informed that incomes up to ₹4 lakh would not be taxed, ₹4 to 8 lakh would host 5% taxation rate, ₹12-16 lakh 10%, ₹12-16 lakh 15%, ₹16-20 lakh 20%, ₹20-24 lakh 25% and incomes above ₹24 lakh 30%.