Union Budget 2025-26: Major Announcements at a Glance
Why in the news
The Union Budget for 2025-26 was tabled on 1 February 2025. It aimed to push growth, ease the tax burden and back priority sectors while keeping public finances disciplined.
Key facts
- Presented by: Finance Minister Nirmala Sitharaman, for fiscal year 2025-26.
- Fiscal deficit target: 4.4% of GDP.
- Gross borrowing: ₹14.82 lakh crore.
- Debt goal: debt-to-GDP ratio to be brought below 50% by 2031.
- Corporate tax: no change; the rate for domestic companies stays at 22%.
- Customs duty cuts: proposed on semiconductors, electric vehicles and green hydrogen equipment.
- GST: slabs to be rationalised so that compliance becomes easier.
Sector-wise allocations
| Area | Announcement |
|---|---|
| Capital expenditure | ₹11.21 lakh crore |
| Rural welfare (total) | ₹4.57 lakh crore |
| MGNREGA | ₹86,000 crore |
| Fertiliser subsidy | ₹1.67 lakh crore (marginally lower) |
| Green hydrogen | ₹19,000 crore |
| Education | ₹1.3 lakh crore |
| Women empowerment programmes | ₹1.2 lakh crore |
Infrastructure and rural push
- Wider National Highways and Expressways, new high-speed rail corridors and more airports.
- Railway modernisation includes 100 new Vande Bharat trains.
- A high-yield crop programme aimed at 17 million farmers, plus interest-free loans for small and marginal farmers.
- Ayushman Bharat to be strengthened; mental health programmes get special attention.
- 50,000 schools to receive digital classrooms; AI and IT training to be expanded.
Energy and technology
- First-ever Nuclear Energy Mission with a goal of 100 GW nuclear capacity by 2047.
- Subsidy support for rooftop solar.
- Rural 5G rollout and promotion of digital payments and blockchain in banking.
Vision and market reaction
- The Budget is linked to the Amrit Kaal outlook and the Viksit Bharat 2047 goal, stressing self-reliance, sustainability and digital change.
- Markets reacted in a mixed way; consumer stocks such as Maruti Suzuki and Britannia rose while infrastructure names such as Larsen & Toubro fell.
Exam angle
- Remember the numbers: 4.4% fiscal deficit, ₹14.82 lakh crore borrowing, ₹11.21 lakh crore capex.
- Long-term targets: debt below 50% of GDP by 2031; 100 GW nuclear by 2047.
- Related terms: Amrit Kaal, Viksit Bharat 2047, Nuclear Energy Mission.