The Union Budget 2025–26, presented under Article 112 of the Constitution, lays out India’s financial roadmap with a strong focus on inclusive growth and the Viksit Bharat vision. It projects total receipts (ex-borrowings) at ₹34.96 lakh crore, expenditure at ₹50.65 lakh crore, net tax receipts of ₹28.37 lakh crore, and a fiscal deficit target of 4.4% of GDP.
Key measures include nil income tax up to ₹12 lakh, crop-specific agricultural missions under the PM Dhan-Dhaanya Krishi Yojana, enhanced MSME credit support, startup funds, and customs duty relief for life-saving drugs and EV battery inputs. With ₹11.21 lakh crore capital expenditure, the Budget strengthens infrastructure, human capital, and manufacturing to accelerate India’s transformation into a globally competitive economy.
| Indicator | FY 2025–26 Estimates |
|---|---|
| Total Receipts (ex-borrowings) | ₹34.96 lakh crore |
| Total Expenditure | ₹50.65 lakh crore |
| Net Tax Receipts | ₹28.37 lakh crore |
| Fiscal Deficit Target | 4.4% of GDP |
| Gross Market Borrowings | ₹14.82 lakh crore |
| Capital Expenditure (Capex) | ₹11.21 lakh crore (~3.1% of GDP) |
| Income Tax Relief | Nil tax up to ₹12 lakh |
| Key Focus Areas | Agriculture, MSMEs, Manufacturing, Exports, Human Capital |
| Policy Anchors | Sabka Vikas, Viksit Bharat |
Union Budget 2025–26: Key Highlights, Themes, and Implications
The Union Budget is India’s most awaited financial statement, shaping the economic course of the nation each year. Presented under Article 112 of the Constitution, it outlines estimated receipts, expenditures, and policy priorities for the upcoming fiscal year. The Finance Minister tables it in Parliament, and once approved, it becomes law through the Appropriation Bill and Finance Bill. The Union Budget 2025–26 stands out for its strong focus on inclusive growth, middle-class relief, MSME empowerment, and the Viksit Bharat vision.
What is Union Budget?
The Union Budget is the central government’s annual roadmap that projects revenues and expenditures for one financial year (April to March). It serves both as a policy statement and a financial plan, aligning spending with economic growth and development priorities. Importantly, no taxes can be levied, nor can money be withdrawn from the Consolidated Fund of India, without Parliament’s approval. Through the Appropriation Bill and Finance Bill, the government legally operationalizes its fiscal proposals and tax reforms.
Budget 2025–26: An Overview
This year’s Union Budget emphasizes “Sabka Vikas” and India’s transformation into a “Viksit Bharat.” The government has announced measures to encourage investment, strengthen agriculture, support MSMEs, and provide relief to the middle class. With strong capital expenditure outlays, the budget signals its commitment to long-term growth. Major aggregates include ₹34.96 lakh crore in receipts (excluding borrowings), ₹50.65 lakh crore in expenditure, ₹28.37 lakh crore in net tax receipts, 4.4% fiscal deficit target, and ₹11.21 lakh crore in capital spending.
Key Themes and Growth Pillars
The Budget frames India’s economic journey around four engines of growth: Agriculture, MSMEs, Investments, and Exports. These pillars are supported by reforms designed to create jobs, boost consumption, and ensure social inclusion. At its core, the Budget envisions a future where India achieves zero poverty, universal quality education, comprehensive healthcare, full employment, higher women’s participation, and globally competitive agriculture. These cross-cutting goals anchor the government’s schemes and allocations, shaping both near-term priorities and long-term national ambitions.
Major Announcements for 2025–26
Agriculture sees a major push with the launch of the PM Dhan-Dhaanya Krishi Yojana, crop-specific missions, and credit enhancements under Kisan Credit Card. Rural initiatives include a new urea plant in Assam and a Makhana Board in Bihar. For industry, MSME classifications are updated, new Micro Enterprise Credit Cards are introduced, and a Fund of Funds for Startups is launched. The Manufacturing Mission further strengthens Make in India by promoting footwear, leather, toys, electronics, and food processing industries.
Tax and Customs Reforms
One of the biggest announcements is the new income tax framework, with nil tax up to ₹12 lakh and progressive slabs thereafter. Salaried taxpayers also get additional deductions for relief. To promote compliance, timelines for updated returns have been extended to four years. On the indirect tax front, the TDS threshold on rent is raised from ₹2.4 lakh to ₹6 lakh. Customs duty exemptions are extended to 36 life-saving drugs, capital goods for EV battery production, and inputs for textiles and electronics manufacturing.
Fiscal Framework and FRBM Context
The government continues its balancing act between fiscal consolidation and growth support. Guided by the Fiscal Responsibility and Budget Management (FRBM) Act, India targets a fiscal deficit of 4.4% of GDP in FY 2025–26. While the pandemic widened the deficit to ~9.2% in FY21, the path of consolidation has been steady. Recommendations of the N. K. Singh Committee stress a calibrated glide path to ensure stability without compromising investment. This budget’s capex-heavy approach reflects that delicate balance.
Budget Process and Timeline
The Union Budget is the result of months of consultations and estimates across ministries. The Finance Minister presents it in the Lok Sabha, followed by debates and votes on Demands for Grants. The Appropriation Bill authorizes spending, while the Finance Bill enacts tax measures. Since 2017, the Budget has been presented on February 1, ensuring timely approval before April 1, the start of the new fiscal year. After parliamentary passage and presidential assent, provisions become law.
Union Budget vs Interim Budget
While the Union Budget covers a full fiscal year with comprehensive proposals, an Interim Budget is presented in years of general elections or government transitions. It seeks parliamentary approval for essential spending for a few months through a Vote on Account and avoids major tax or policy announcements. By contrast, the full Union Budget, like in 2025–26, sets the economic direction for the entire year with reforms, sectoral allocations, and fiscal targets.
Historical Evolution of Union Budget
The history of India’s Budget is rich with turning points. The first-ever budget in India was presented in 1860 by James Wilson under British rule. Independent India’s first Union Budget was delivered by R. K. Shanmukham Chetty in 1947. Key milestones include the 1991 Budget by Dr. Manmohan Singh that liberalized India’s economy, the 1997 “Dream Budget” that rationalized taxes, and the 2017 reform merging the Railway Budget with the Union Budget. These iconic budgets shaped India’s fiscal and economic journey.
Where to Access Budget Documents
The government makes budget documents easily accessible for transparency. The official India Budget portal hosts detailed statements, including Demands for Grants, Expenditure Profiles, Receipts, and Annexes. Users can also explore historical data from 1947–48 onwards. For quick summaries, the Ministry of Finance and the Press Information Bureau (PIB) publish “Key Features” and sectoral highlights. These resources are essential for researchers, policymakers, journalists, and citizens who wish to analyze fiscal priorities and reforms.
Sectoral Highlights for 2025–26
Beyond fiscal math, the Budget focuses on reforms in energy, power, infrastructure, and manufacturing to attract investment and reduce costs. In human capital, it emphasizes universal education, healthcare, and skilling pathways to boost productivity and employment. For agriculture, crop-specific missions and rural ecosystem development promise better incomes and resilience. With support for MSMEs, startups, and green technologies, the Budget outlines a strategy for both near-term growth and long-term transformation into a globally competitive economy.
SEO and Content Implications
Union Budget season sparks high public interest, especially around income tax slabs, TDS limits, customs exemptions, MSME reforms, and agriculture schemes. For SEO, these are hot search queries, ideal for explainers, FAQs, and calculators. Including fiscal data like receipts, expenditure, and deficit in structured formats enhances Google Discover visibility. Linking to official budget PDFs boosts authority (E-E-A-T), making articles more trustworthy and shareable. Websites can tap into this seasonal content wave by combining data-driven insights with user-friendly breakdowns.
Key Numbers at a Glance (FY 2025–26)
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Total Receipts (ex-borrowings): ₹34.96 lakh crore
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Total Expenditure: ₹50.65 lakh crore
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Net Tax Receipts: ₹28.37 lakh crore
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Fiscal Deficit: 4.4% of GDP
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Gross Market Borrowings: ₹14.82 lakh crore
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Capital Expenditure: ₹11.21 lakh crore (~3.1% of GDP)
Anchored in the principles of Sabka Vikas and Viksit Bharat, the Union Budget 2025–26 lays out India’s blueprint for sustainable growth and inclusive development.
FAQs on Union Budget
What is the Union Budget?
The Union Budget is the Government of India’s annual financial statement under Article 112, presenting estimates of receipts, expenditures, taxation changes, and policy priorities for one fiscal year. It serves as the country’s economic blueprint and requires parliamentary approval through the Appropriation Bill and Finance Bill.
Who presents the Union Budget in India?
The Union Budget is presented by the Finance Minister of India in the Lok Sabha, usually on February 1 each year, to outline the financial roadmap for the coming fiscal year starting April 1.
What is the main focus of Union Budget 2025–26?
The 2025–26 Union Budget focuses on inclusive growth under the “Sabka Vikas” and “Viksit Bharat” vision, emphasizing agriculture, MSMEs, manufacturing, exports, human capital, private investment, and middle-class relief.
What are the key numbers in Union Budget 2025–26?
The Budget estimates total receipts (excluding borrowings) at ₹34.96 lakh crore, total expenditure at ₹50.65 lakh crore, net tax receipts at ₹28.37 lakh crore, fiscal deficit at 4.4% of GDP, gross market borrowings at ₹14.82 lakh crore, and capital expenditure at ₹11.21 lakh crore (~3.1% of GDP).
What are the new income tax changes in Budget 2025–26?
The Budget introduces a nil tax rate up to ₹12 lakh of annual income, progressive tax slabs thereafter, additional deductions for salaried taxpayers, and extends the timeline for updated returns to four years.
What are the new TDS rules in Union Budget 2025–26?
The TDS threshold on rental income has been raised from ₹2.4 lakh to ₹6 lakh annually, reducing the compliance burden on tenants and landlords.
What customs duty changes were announced in Budget 2025–26?
The Budget provides customs duty relief on 36 life-saving drugs, capital goods for lithium-ion battery production, and parts for textiles and electronics, encouraging domestic manufacturing and healthcare affordability.
What is the PM Dhan-Dhaanya Krishi Yojana?
The PM Dhan-Dhaanya Krishi Yojana is a flagship agricultural scheme announced in Budget 2025–26 to develop Agri Districts, support pulses, seeds, cotton, fisheries, and horticulture, and strengthen credit availability through the Kisan Credit Card.
What support has been announced for MSMEs in Union Budget 2025–26?
The Budget introduces revised MSME classifications, micro enterprise credit cards, a fund-of-funds for startups, first-time entrepreneur schemes, and targeted support for industries like leather, toys, footwear, electronics, and food processing.
What is the fiscal deficit target for FY 2025–26?
The fiscal deficit is targeted at 4.4% of GDP for FY 2025–26, continuing the path of fiscal consolidation while maintaining high levels of capital expenditure.
What role does the FRBM Act play in the Union Budget?
The Fiscal Responsibility and Budget Management (FRBM) Act provides the framework for fiscal discipline and transparency, guiding deficit targets and government borrowing while ensuring long-term macroeconomic stability.
What is the difference between Union Budget and Interim Budget?
The Union Budget is a full-year financial plan with detailed tax, expenditure, and policy measures. An Interim Budget is a temporary arrangement presented before elections to seek a Vote on Account for essential spending without major reforms.
When is the Union Budget usually presented?
The Union Budget is generally presented on February 1 each year in the Lok Sabha, allowing sufficient time for discussion and passage before the new fiscal year begins on April 1.
Who presented the first Union Budget of independent India?
The first Union Budget of independent India was presented by R. K. Shanmukham Chetty on 26 November 1947, focusing on post-independence stabilization and revenue adjustments.
Which was the most historic Union Budget in India?
The 1991 Budget presented by Dr. Manmohan Singh is considered historic for introducing economic liberalization, dismantling the license raj, and opening India to global markets.
What are the four pillars of Union Budget 2025–26?
The four growth engines identified in the Budget are Agriculture, MSMEs, Investments, and Exports, all supported by reforms aimed at achieving inclusive and sustainable growth.
What is capital expenditure in the Union Budget?
Capital expenditure refers to funds allocated for creating long-term assets like infrastructure, power, transport, and industry. In FY 2025–26, capital expenditure is set at ₹11.21 lakh crore, about 3.1% of GDP.
Where can I find official Union Budget documents?
All official Budget documents, including Demands for Grants, Expenditure Profiles, Receipts, and Highlights, are available on the official India Budget portal (www.indiabudget.gov.in) and the Press Information Bureau website.
What are the key schemes announced in Union Budget 2025–26?
Key schemes include the PM Dhan-Dhaanya Krishi Yojana, crop-specific missions, MSME support programs, startup funding initiatives, manufacturing missions, and reforms in healthcare, education, and skilling under the Viksit Bharat framework.
What are the implications of Union Budget 2025–26 for the middle class?
The Budget provides significant tax relief with nil tax up to ₹12 lakh, increased deductions for salaried taxpayers, higher TDS limits on rent, and broader access to credit, directly boosting disposable incomes and consumption.