Budget 2025 Highlights – Many people and businesses in India look forward to Budget Day to hear about new government plans that could help them. On February 1, 2024, Finance Minister Nirmala Sitharaman presented the Union Budget for the financial year 2024-25. This budget is an interim one as it is announced before the Lok Sabha elections. Here’s a simple guide to the important Budget 2025 highlights and what they mean for you.
Main Highlights of Budget 2025
Finance Minister Nirmala Sitharaman shared important plans focused on growth, fairness, and making life better for women, youth, and farmers. The government plans to bring down the fiscal deficit to 5.1% of GDP in 2024-25 and increase capital spending by 11% to Rs 11.1 lakh crore. There were no changes to direct or indirect tax rates, giving taxpayers stable conditions.
Main Features of Budget 2025
The Budget keeps fiscal discipline while increasing spending on important sectors. The government will support housing for middle-class people living in rented homes, slums, or unapproved colonies by helping them buy or build houses. Ayushman Bharat health coverage will now include all ASHA and Anganwadi workers.
Important Points to Note
Income Tax and TDS Rates Stay the Same
The personal income tax slabs stay the same. This means no increase or decrease in income tax or TDS rates, offering stability to taxpayers and businesses.
Focus on Job Creation and Infrastructure
The government is focusing on infrastructure, housing, and inclusive development that matches India’s needs. New loans and funds will encourage states to invest in tourism and innovation, creating many jobs for the youth.
Tax Relief on Small Disputed Direct Tax
Taxpayers with unpaid direct tax claims between Rs 10,000 and Rs 25,000 from previous years up to 2009-10 will get temporary relief as these claims are waived.
Support for Startups and Businesses
Tax benefits for startups and other incentives have been extended until March 31, 2025, encouraging innovation and investment in India’s growing business sectors.
New Helpful Schemes
The budget allocates funds for 2 crore new homes under Pradhan Mantri Awas Yojana – Gramin (PMAY-G) to provide affordable housing in rural areas. A fund of Rs 1 lakh crore will be created to support long-term loans for technology growth and innovation.
Other Important Announcements
- The government aims to reduce the fiscal deficit further to less than 4.5% in 2025-26.
- Direct tax collections have nearly tripled since 2014, showing increased compliance.
- Railways will focus on three new corridors to improve freight transport efficiency and reduce costs.
- Efforts to increase women’s participation with laws against triple talaq and reservation of seats in parliament and state assemblies.
- One crore households will get up to 300 units of free electricity monthly through rooftop solar panels, supporting green energy goals.
- Long-term interest-free loans will be offered to states to promote tourism.
- More medical colleges will be created by using existing hospital infrastructure.
- The government is committed to supporting poor, women, youth, and farmers for overall sustainable growth.
This Budget promises steady economic growth with a focus on the needs of every Indian. It aims to improve infrastructure, housing, health, and job creation while keeping tax policies steady and business-friendly.