Omkar Dattatray
As we kick off 2025, the much anticipated Union Budget 2025 has been unveiled, offering a roadmap for India’s growth, fiscal stability and social development. The finance minister Nirmala Sitharaman the first female FM is presenting her 8th consecutive and Modi government 3.0’s second budget. She has presented the country’s budget for the year 2025-26 in the parliament today on 1st February 2025. This union budget will be the blue print for Viksit Bharat by 2047 and sets forth the vision of a developed India. The government has outlined several strategic initiatives aimed at bolstering economic recovery post-pandemic, promoting inclusive growth, and enhancing India’s competitive edge on the global stage.The budget 2025 projects economic growth rate of 6.3% to 6.8%. One of the most awaited aspects of the budget is tax relief for individuals and businesses. Taxpayers are expecting changes in tax slabs under the new tax regime, with hopes of an increase in exemption limits and standard deductions since the centre government has approved the 8th pay commission for central government employees, and pensioners as well as family pensioners will all be benefitted. There is a genuine demand for making annual income up to Rs 10 lakh tax free. The outstanding feature of the budget 2025 will be that Mahlaxmi – the goddess of wealth and prosperity will shower her blessings on the middle income group. But finance minister Sitharaman has shown magnanimity and broadmindedness and announced a big bonanza and great relief for the salaried class and the general people and made income up to Rs 12,0000 lakh annually free & exempted from income tax and it is no less than the gift of finance minister to the salaried class and middle income group. By this announcement of far-reaching importance Modi government has won appreciation from the salaried class, middle income group and has won the hearts and minds of the majority of the people and this great relief to salaried and middle income group will boost the political fortunes of NDA/BJP as the elections in Delhi are underway and some state assembly elections are near. .The new budget 2025 will be pro people and pro poor. The household consumption, demand and investment will grow up. The budget 2025 should focus on investment, employment generation and control of inflation. In the face and middle of global economic slowdown India economy is robust as its fundamentals are strong and it will continue its march towards Viksit Bharat and there are no two views about it. The union budget 2025-26 is expected to include measures to support the economy ,employment, and businesses. In the upcoming union budget ,the finance ministry may take steps to revive export -boosting schemes ,such as the interest Equalization Scheme -IES ,offer financial support to exporters, and enable flexibility for certain service sector units in special economic zones -SEZ’s. PM has said that the new year budget will be historical as it will focus on the overall development of the economy while giving big relief to the middle income group and poor people. Since the IES expired on December 31,the commerce department is seeking approval for a slightly modified version of the scheme to cover at least micro, small ,and medium enterprises -MSME’s. The IES is an interest -subvention scheme under which exporters are given benefits in the interest rates charged by banks on their pre-and post -shipment rupee export credits. Lenders are subsequently compensated by the government. The scheme was launched in 2015 for five years to reduce stress among exporters, especially in labor -intensive sectors and MSME’s. Majority of the people are hoping for policy measures that will bring down prices of daily household items. Additionally youth are looking for announcements that will create more jobs ,while the salaried class is expecting income tax concessions. The inflation rate should be checked and government should focus on areas such as travel expenses as it is getting costlier. In new budget there should be better tax rebate. Train facilities should be made even better and frequency of trains should also be increased. It is hoped that there will be several announcements for the middle class ,poor people and farmers as the farmers are the back bone of the economy and president Droupadi Murmu in her address to the joint session of the parliament made several references to the middle class. The government is expected to continue its fiscal consolidation roadmap ,bringing down the fiscal deficit from 4.9 percent in FY 25 to 4.8% ,with a target of 4.5 % in FY 26.A major focus of budget 2025 is expected to be tax reform and simplification. The a government is likely to introduce modernized Direct Tax Code -DTC ,replacing the 63-year old Income Tax Act -much like how GST revolutionized indirect taxation. The focus of the budget 2025 are on the following-A-Focus on Infrastructure Development B-Digital Economy & Innovation. C-Taxation Reforms for a Simplified System. C-Focus on Health and Education D-Support for Farmers and Agriculture. E-Green Growth and Climate Action .F -Strengthening Social Welfare Schemes G-Revitalization of the MSME Sector.
The key highlights will shape the financial trajectory and financial landscape of the country in the coming year. One of the most significant thrust areas in Budget 2025 is infrastructure .The government has allocated a substantial increase in funding for key infrastructure projects ,aiming to drive long -term growth and enhance connectivity across the country. Boost to rural infrastructure, focus on National Infrastructure Pipeline-NIP Expansion ,digital economy and innovation as the digital revolution continues to be a cornerstone of India’s growth .A much awaited reform is the proposed simplification of the tax system .Budget 2025 outlines various initiatives designed to make tax compliance easier for both individuals and businesses. Finance minister rather the Modi government has recognized that a healthier and better-educated population is vital for sustained economic growth and thus expansion of National Health Mission and increased funding for skill development has been given top attention in the budget. India’s agricultural sector remains the backbone of its economy and the budget 2025 addresses the need for long-term agricultural reforms. The government is set to increase direct cash transfers to farmers under the PM-Kisan Yojana ,aiming to boost agricultural income and improve financial security.
Budget focuses on green growth and climate action. Sustainability is at the core of budget 2025 and there is special stress on clean energy investment and carbon reduction targets. Social welfare programs continue to play a pivotal role in Budget 2025 .There is increased allocations for women and child welfare.
The government aims to enhance financial inclusion ,with focus on expanding access to credit and banking services for rural and underserved populations. Besides this, micro ,small ,and medium enterprises -MSME’s form the backbone of India’s economy .To ensure the growth of this crucial sector ,the government is focusing on-A-Easy access to credit ,credit guarantee scheme extension. India aims to position itself as a global economic player with increased foreign investment. In this regard attracting FDI is one of the main initiatives as per the budget. .In short the budget 2025 delivers a comprehensive vision for India’s future. It focuses not only on driving economic growth but also on ensuring that this growth is inclusive and sustainable. From infrastructure development to green energy, taxation reforms to social welfare, this budget sets the stage for a stronger ,more resilient economy. Budget 2025 combines modernization with inclusivity, striking a delicate balance between driving innovation and maintaining social welfare. In fact this budget is growth oriented and pro people and pro poor.
Thus it is a historical budget in many ways and it is a big milestone for contributing for a Vilsit Bharat @ 2047.Hats off to the first finance minister Nirmala Sitharaman for giving a balanced budget which address the concerns of all most all stakeholders .The new year will provide us the opportunity to make India a powerhouse of global economic power and the new budget will pave way for a developed India by 2047.
(The author is a columnist, social, KP activist)