Union Budget 2025 - Highlights 

Union Finance Minister Nirmala Sitharaman announced the Union Budget for the Financial year 2024-25 on 1st February 2025.

Let’s look at the key highlights -

• Tax slabs revised to boost savings and consumption by middle-class people 

• The four engines of development recognised by this budget are as follows -

  • Agriculture

  • MSME

  • Investments

  • Export

• Gig workers and freelancers will get employer benefits like healthcare and identity cards

• Increased TDS on rent

New Tax Slab

One of the first questions that taxpayers ask when the budget is announced is ‘how much tax will I have to pay?’ Let’s understand tax slabs and know the new ones -

• People earning less than Rs.12 Lakh, i.e. up to Rs.1 Lakh in a month need not pay any taxes.

• Salaried individuals earning less than Rs.12.75 Lakh in a year need not pay any taxes. This is higher due to the standard deduction of Rs.75,000.

If your income is higher, you will have to pay taxes based on the slabs mentioned below -

Agriculture

Here are the new schemes that were launched as a focus on the agriculture sector -

• Prime Minister Dhan-Dhaanya Krishi Yojana

The Prime Minister Dhan-Dhaanya Krishi Yojana was launched covering over 100 districts. This aims to improve productivity, crop diversification, post-harvest storage, irrigation facilities, and credit availability.

• Rural Prosperity and Resilience

The Rural Prosperity and Resilience program which is a multi-sectoral program, will be launched. The aim is to address underemployment through skill-building, investment, and technology. 

This is expected to generate opportunities in rural areas, focusing on rural women and youth, young, small, and marginal farmers, and landless families.

• Mission for Atmanirbharta in Pulses

A 6-year Mission for Aatmanirbharta in Pulses will be launched, focusing on pulses like Tur, Urad, and Masoor. The National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED) and National Cooperative Consumers’ Federation of India Ltd. (NCCF) will procure these 3 pulses, as much as offered, during the next 4 years.

• Loans

Loan limits through the Kisan Credit Cards will be increased from Rs.3 Lakh to Rs.5 Lakh with interest subvention schemes.

• Other Schemes

Schemes like the Comprehensive Programme for Vegetables & Fruits, the National Mission on High Yielding Seeds, and a 5-year Mission for Cotton Productivity will be launched. The aim is to promote agriculture and allied activities.

Micro, Small, and Medium Enterprises

MSMEs are a major part of India’s economy and thus several reforms were suggested related to them. Let’s take a look at them -

• Investment limits increased by 2.5 times

• Turnover limits increased by 2 times

• Credit availability increased 

• New scheme for 5 lakh first-time enterpremuers who are women, or belong to Scheduled Castes and Scheduled Tribes. Under this scheme, loans of up to Rs.2 Crore will be provided.

• New scheme to make India a global hub for toys representing the ‘Made in India’ brand. 

Investments

Investments refer to investing in people, infrastructure and other things to improve the economy. Here are some of the proposed schemes -

• For investing in people, 50,000 Atal Tinkering Labs will be set up in Government schools

• Under the Bharatnet scheme, internet broadband connectivity will be provided to all Government secondary schools and primary health centers in rural areas

• The Bharatiya Bhasha Pustak Scheme will be launched to provide digital-form Indian language books for school and higher education

• A Centre of Excellence in Artificial Intelligence will be set up for education

• Gig workers will get identity cards, will be registered on the e-Shram portal, and also receive healthcare

• The Jal Jeevan Mission is now extended till 2028

• Rs.20,000 Crore will be allocated for a private sector-driven Research, Development, and Innovation

• A National Geospatial Mission will be launched to benefit urban planning

Export

This is the fourth engine of growth according to the Finance Minister and will help MSMEs tap into the export market. Here are the highlights -

• The BharatTradeNet or the BTN which is a unified digital public infrastructure platform will be launched. It will help document and finance export solutions.

• Infrastructure and warehousing of air cargo will be upgraded 

• Domestic manufacturing units will also be supported so that India’s economy can integrate with global supply chains

• The domestic electronic equipment industry will also be supported

Expensive Vs. Economical

Here are some of the products that have either become dearer or cheaper based on the new budget -