Gopocket

Budget Estimates for 2025-26 Total receipts other than borrowing: ₹34.96 lakh crore Total expenditure: ₹50.65 lakh crore Fiscal Deficit: 4.4% of GDP. To finance the fiscal deficit, the net market borrowings from dated securities are estimated at ₹11.4 lakh crore.

Revised Tax slabs under New Tax Regime ₹0-4 lakh - nil ₹4-8 lakh - 5 per cent ₹8-12 lakh - 12 per cent ₹12-16 lakh - 15 per cent ₹16-20 lakh - 20 per cent ₹20-24 lakh - 25 per cent Above 24 lakh - 30 per cent

Revised estimates for 2024-25 Total receipts other than borrowing: ₹31.47 lakh crore Total expenditure: ₹47.16 lakh crore Fiscal Deficit: 4.8% of GDP

Gopocket Live Updation (Budget 2025): No Income Tax Payable up to 12 Lakhs per Annum

Fiscal Policy Announcing the fiscal policy for this year’s Budget, Ms. Sitharaman says that the roadmap for the next 6 years for fiscal consolidation has been detailed in the FRBM statement.

Measures for reforming Regulatory framework In order to reform regulatory framework, making it more people-friendly, Ms. Sitharaman announces four measures: A high-level committee for regulatory reforms for a review of all non-financial sector regulations, certifications, licences and permits. The Committee will be expected to make recommendations within a year to drive trust-based regulations. Investment-friendliness index of States will be launched in 2025 Mechanism will be set up to evaluate impact of current financial regulations and subsidiary instructions. In the Jan Vishwas Act, 2023, more than 180 legal provisions were decriminalised. A new bill Jan Vishwas 2.0 will be moved to decriminalise another 100 provisions.

Financial sector reforms Announcing reforms in the Financial Sector, Ms. Sitharaman said that the FDI limit in the insurance sector will be enhanced from 74% to 100%, for companies that invest their entire premium in India. The services of India Post Payment Bank will be deepened and expanded in rural India. Public sector banks will develop a Grameen credit score framework. A forum for regulatory coordination and development of pension products will be set up. A revamped central KYC registry will be rolled out in 2025, and we will also streamline the process for speedier re-KYCs . Bilateral investment treaties were signed with two countries in 2024. To encourage more investment, the current BIT will be revamped and made more investor-friendly.

Reforms as the fuel Speaking on “reforms as the fuel”, for the four engines mentioned previously in her speech, Ms. Sitharaman notes that over the past 10 years, government has implemented several reforms for convenience of taxpayers. “I reaffirm the commitment of the tax department to ‘Trust First and Scrutinise Later’. I also propose to introduce a new Income Tax Bill next week.”

Exports as fourth engine: Sitharaman Expanding on the government’s allocation of Exports as fourth engine to driving the goal of Viksit Bharat, Ms. Sitharaman announces setting up an export promotion mission, driven by the Ministries of Commerce, MSMEs and Finance, that will support easier access to credit and help MSMEs to deal with non-tariff barriers. Digital Public Infrastructure -- Bharat Trade Net -- for international trade will be set up for trade documentation and financial solutions. A national framework will be formulated as guidance to States for promoting Global Capability Centres in emerging tier-2 cities.

Investing in Innovation Announcing measures to promote “Investing in Innovation”, Ms. Sitharaman announces an allocation of ₹20,000 crores. A DeepTech Fund of Funds will also be explored to catalyse the next generation startups. 10,000 fellowships to be provided for technological research in IITs and IISC with enhanced financial support. National geo-spacial mission to be set up to develop foundational geo-spacial infrastructure and data. Gyan-Bharatam Mission for survey, documentation, and conservation of manuscripts heritage will be undertaken to cover 1 crore manuscripts

Gopocket Live Updation (Budget 2025): Indirect Tax Measures to Support Domestic Manufacturing and Value Addition • Cobalt powder and waste, scrap of lithium-ion battery, Lead, Zinc and 12 more critical minerals to be exempted from Basic Customs Duty (BCD). • 35 additional goods for EV battery manufacturing, and 28 additional goods for mobile phone battery manufacturing to be added to list of exempted capital goods

Tourism for employment-led growth: Sitharaman Top 50 tourism sites to be developed with States in a challenge mode. Hotels under this programme will be included in the infrastructure harmonised list. Measures will be taken for facilitating employment-led growth which will include: Organising intensive skill development programs in institutes of hospitality management. Providing Mudra Loans for homestays, Providing PLIs to States for effective destination management, including tourist amenities and marketing efforts, and will include e-visa facilities for some tourists. Medical tourism and Heal In India will be promoted in partnership with the private sector along with capacity building and easier visa norms.

Gopocket Live Updation (Budget 2025): FM Nirmala Sitharaman mentioned that the Deep Tech fund will further encourage startups from both technical and non-technical backgrounds to bring their ideas to life.

Tourism for employment-led growth: Sitharaman Top 50 tourism sites to be developed with States in a challenge mode. Hotels under this programme will be included in the infrastructure harmonised list. Measures will be taken for facilitating employment-led growth which will include: Organising intensive skill development programs in institutes of hospitality management. Providing Mudra Loans for homestays, Providing PLIs to States for effective destination management, including tourist amenities and marketing efforts, and will include e-visa facilities for some tourists. Medical tourism and Heal In India will be promoted in partnership with the private sector along with capacity building and easier visa norms.

Mining sector reforms Mining sector reforms, including those for minor minerals, will be encouraged through sharing of best practices and the institution of a State Mining Index, Ms. Sitharaman says in her Budget speech. A policy of recovering critical minerals from tailings will be brought out.

Modified UDAAN regional connectivity scheme will be launched The UDAAN regional connectivity scheme, Ms. Sitharaman says, has enabled 1.5 crore middle class people to make their aspirations for speedier travels. A modified Udaan scheme will be launched to enhance regional connectivity to 120 new destinations and carry 4 crore passengers in the next 10 years. The scheme will also support helipads and smaller airports in hilly and aspiration districts. Greenfield airports will be facilitated in Bihar to meet the future needs of the State. These will be in addition to expansion of Patna airport. Western Kosi canal project in Mithilanchal will be given financial support that will benefit a large number of farmers in Bihar.

Ship building financial assistance policy to be revamped Ship building financial assistance policy will be revamped to address cost disadvantages, which will also include credit notes for ship-breaking in Indian yards to promote the circular economy. For long term financing of maritime industry, a Maritime Development Fund with a corpus of ₹25,000 crore will be set up. This will have up to 49% of contribution from the government and the balance will be from ports and the private sector.

Gopocket Live Updation (Budget 2025): Nuclear Energy Mission Development of at least 100 GW of nuclear energy by 2047 is essential for our energy transition efforts, Ms. Sitharaman said. For an active participation of private sector in this sector, amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act will be taken up. Nuclear Energy Mission for R&D of small, modular reactors with an outlay of ₹20,00 crores will be set up. At least five indigenously developed, small modular reactors will be operationalised by 2033.

Sitharaman announced an outlay of ₹1.5 lakh crore for 50-year interest free loans to states for capex and infrastructure.

Gopocket Live Updation (Budget 2025): Finance Minister Nirmala Sitharaman announces, 36 live savings drugs and medicines fully exempted from basic customs duty