Budget 2025: How India Plans to Spend in 2025

Budget 2025: How India Plans to Spend Highlights

Finance Minister Nirmala Sitharaman presented the Union Budget 2025-26 on February 1, outlining the government’s plans to boost economic growth, improve infrastructure, and support key sectors like healthcare, education, and agriculture. This budget comes at a crucial time as India continues to navigate global economic challenges while maintaining its position as one of the world’s fastest-growing economies.

Major Announcements in Budget 2025

1. Income Tax Relief for the Middle Class

One of the biggest takeaways from this budget is the increase in the tax exemption limit. The government has raised the income tax exemption threshold to ₹12 lakh (earlier ₹7 lakh). This means more savings for the middle class, which could lead to higher spending and investments.

2. Focus on Farmers and Rural Development

The government has launched a National Mission for High-Yield Crops to help farmers increase their production. Additionally, subsidized loans for farmers have been expanded. These steps aim to boost rural income and strengthen India’s agricultural sector.

3. Big Investment in Infrastructure

The government has allocated ₹10 lakh crore ($130 billion) for infrastructure development. This includes major road, railway, and urban development projects. Such investments will create jobs, improve transportation, and enhance living standards.

4. Funds for Healthcare and Education

Healthcare: ₹89,287 crore ($12 billion) has been set aside for the health sector. This includes funds for new hospitals and healthcare centers.
Education: ₹1.25 lakh crore ($6.8 billion) will be used to improve schools, promote digital learning, and enhance the Samagra Shiksha scheme.

5. Fiscal Deficit and Borrowing:

The government projects the fiscal deficit to decrease to 4.4% of GDP in 2025-26, down from 5.9% in the previous year. To finance this deficit, plans are in place to borrow ₹14.82 trillion.

Industry Reactions: Budget 2025

Positive Feedback: The tax cuts have been welcomed by many, with expectations that increased disposable income will boost consumer spending.
Concerns: Some analysts express caution regarding the potential impact of reduced tax revenues on long-term government projects and fiscal health.

Market Response:

Following the Budget 2025 announcement, Indian stock markets experienced mixed reactions. While infrastructure-related stocks saw a slight decline due to perceived modest capital expenditure increases, sectors such as fast-moving consumer goods (FMCG), automotive, and real estate benefited from anticipated rises in consumer spending driven by tax cuts.

Conclusion:

The Union Budget 2025 introduces significant tax reforms and substantial investments across key sectors, reflecting the government’s commitment to fostering economic growth and supporting the middle class. While the initiatives have been largely praised, careful implementation and monitoring will be essential to ensure fiscal sustainability and the successful realization of the budget’s objectives.

Sumit

Bhartiyakhabhar is a Professional News Platform. Here we will only provide you with interesting content that you will enjoy very much. We are committed to providing you the best of News, with a focus on reliability and Daily News, Sports, Govt.Jobs, tech, Entertainment. we strive to turn our passion for News into a thriving website. We hope you enjoy our News as much as we enjoy giving them to you.