Budget 2025: Budget does not mean just numbers, it is a roadmap for the development of the country. If we talk about Budget 2025, it is quite significant because it is going to address new financial challenges and opportunities. In this article, we will simplify and explain every important aspect of this budget.
Table of Contents
Key Highlights of Budget 2025
1. Extra support for agriculture sectorInfrastructure and Manufacturing
Heavy investment is expected in infrastructure development, which will boost employment and economic growth. Make in India has also been given a push in this budget.
In this budget, allocation to the agriculture sector has been increased by more than 15%. Its aim is to introduce new high-yield seeds, improve storage facilities, and make the supply chain better for farmers.
2. 8% increase in subsidies
An allocation of $47.41 billion has been made on subsidies, which will help tackle the rising prices of food, fertilizers and cooking gas.
3. Disinvestment target redacted
The government has reduced its disinvestment target by 40% to less than Rs 300 billion.
Sector-wise Impact
1. Healthcare and Pharmaceuticals
Healthcare and pharma sectors demanded 2.5-3% more budget allocation, and also requested for tax exemptions.
2. Infrastructure and Manufacturing
Heavy investment is expected in infrastructure development, which will boost employment and economic growth. Make in India has also been given a push in this budget.
Taxation Changes
1. Income Tax
The basic exemption limit for middle-class taxpayers was expected to be increased in the budget. Changes were also demanded in Section 80C deductions.
2. Capital Gains Tax
Major structural changes were expected in the capital gains tax, but the government did not address them in this budget.
Economic Projections
1. Growth Targets
The government has set a nominal growth target of 10.5%, and expects real GDP growth to be 6.5-7%.
2. Fiscal Deficit
A major focus of this budget is to reduce the fiscal deficit to 4.9% of GDP.
