Heading: Union Budget 2025-26: A People’s Budget Shaping India’s Future
Subheading: Finance Minister Nirmala Sitharaman unveils pro-middle class measures and transformative reforms across key sectors
The Indian Union Budget 2025-26, presented by Finance Minister Nirmala Sitharaman, has set the tone for what many are calling the 'people's budget'. This budget seeks to address the needs of the poor (garib), youth, farmers (annadata), and women (nari), whilst asserting the government’s commitment to deliver transformative reforms across six fundamental sectors: taxation, urban development, mining, financial sector, power, and regulatory reforms.
During her presentation, Sitharaman emphasized the importance of these reforms as vehicles for inclusive growth and economic transformation, underscoring the government’s resolve to stimulate the economy. "This budget continues our Government’s efforts to accelerate growth, secure inclusive development, invigorate private sector investments, and uplift household sentiments," she explained, as she projected India’s economic growth potential amid global uncertainties.
Highlighting the importance of regional diversity, she articulated the aspiration for 'Viksit Bharat', stating, "Together, we will work to fulfill our nation’s potential for greater prosperity and global positioning under the leadership of Prime Minister Narendra Modi." The Finance Minister emphasized the twin pillars of the budget: zero poverty, and quality education and healthcare, encapsulated under the phrase “Sabka Vikas” or everyone's development.
The budget outlines ten broad areas of focus, explicitly addressing issues such as spurring agricultural growth, building rural prosperity, enabling employment-led development, and nurturing innovation. With agriculture expected to be the first of four powerful economic engines, the government plans to implement the ‘Prime Minister Dhan-Dhaanya Krishi Yojana’ to cover 100 districts with low productivity, expecting to positively impact approximately 1.7 crore farmers.
Further, Sitharaman introduced significant changes to the income tax regime, announcing no income tax for individuals earning up to ₹12 lakh under the new tax structure. "To tax payers up to ₹12 lakh of normal income, tax rebate is being provided, ensuring no tax is payable by them," she stated. The new tax bill, anticipated to be introduced next week, is set to be simpler and more taxpayer-friendly, aimed at reducing litigation and increasing compliance rates.
Prime Minister Modi praised this move as part of fulfilling the aspirations of middle-class families, asserting, "This budget is all about filling the pockets of the people, not the government’s coffers." The focus on increasing disposable income is expected to boost savings, spending, and overall economic growth.
Exactly how this budget tackles entrepreneurship was also noteworthy. Sitharaman announced the launch of schemes for 5 lakh first-time entrepreneurs, including women and marginalized communities, providing term loans up to ₹2 crore over the next five years. This is expected to significantly empower underrepresented groups, stimulating grassroots economic activity.
Modernization of transport infrastructure featured prominently, with the Modi administration committing to modify the ‘UDAN’ scheme to reach 120 new destinations, bringing regional connectivity to the forefront. "This modification will carry four crore passengers over the next ten years," Sitharaman noted, focusing heavily on both rural and urban travel enhancements.
Fiscal prudence remains evident within the budget framework, which projects the fiscal deficit at 4.4% of GDP. The government plans to finance this deficit through net market borrowings projected at ₹11.54 lakh crore, with additional funding sourced from small savings and other means.
Healthcare improvements took center stage as well, with plans to add 75,000 medical seats across colleges by 2030 as part of the measures to bolster the nation’s healthcare workforce. "We will also facilitate the establishment of Day Care Cancer Centres across district hospitals, which will start with 200 additional centres by 2026," she stated. This move aims to address healthcare accessibility for populations at risk.
MSMEs, which make up 36% of India's manufacturing sector, were another key focus area. The investment and turnover limits for MSME classification will see substantial increases, anticipated to promote growth and confidence among small enterprises. Sitharaman stated, "With increased support, MSMEs will generate significant employment opportunities for our youth. This is not just about supporting businesses; it’s about bolstering our economy. ”
The budget also recognizes the need to empower marginalized groups, with investments planned for skilling women and youth, and initiatives related to digital literacy across rural and urban settings. The proposal to develop broadband connectivity for all government schools and rural health centres underlines the government’s commitment to bridging the digital divide.
Some critics have raised concerns about the efficacy of these measures, especially with regards to unemployment levels. Congress MP Shashi Tharoor remarked, "This budget seems to benefit only those with salaries; what provisions are there for the unemployed?" This highlights the ever-present dialogue about how to equitably distribute resources amid economic reforms.
PM Modi’s endorsement of the budget reverberated through Parliament, stating, "This budget has put our ambitious targets firmly within reach. We are resetting our course to capitalize on our strengths, focusing on infrastructure and empowerment." Such themes are consistent with the government's persistent push for economic revitalization.
The Union Budget 2025-26, characterized by its commitment to social equity and economic growth, lays the groundwork for future initiatives aimed at consolidative development. With its strategic focus on inclusive reforms and enhancing individual financial agency, it is poised to steer India toward its envisioned future of comprehensive prosperity and growth.