Key Takeaways for Everyday Indian🤝
The drums have beaten, the speeches made, and the numbers revealed. Finance Minister Nirmala Sitharaman presented her 6th Budget.
Standing at just 56 minutes this was Ms. Sitharaman’s shortest Budget speech till date. This pre-election budget emphasized youth and women's empowerment as top priorities. At the same time, the government aimed to maintain fiscal discipline and consolidation while continuing investments in capital expenditures. The overarching focus was on inclusive growth by targeting segments like youth and women but pursued through strong fiscal policies in an election year.
The Vision: A Prosperous Bharat in Harmony with Nature
The government's vision emphasizes creating a prosperous India that lives harmoniously with the environment. The goals are modern infrastructure, opportunities for all citizens, and an inclusive society that taps into India's demographic strengths and diverse population through a framework of "Sabka Saath, Sabka Vikas, Sabka Vishwas."
This vision looks ahead to a developed India by 2047, backed by the collective efforts and contributions of all Indians through "Sabka Prayas." The central focus is on balanced and sustainable growth that lifts all segments of society.
• No alterations have been made to the direct and indirect tax rates.
• The government has rescinded income tax demands, exempting amounts up to ₹25,000 for the fiscal year 2009-10 and ₹10,000 for the period spanning 2010-11 to 2014-15. This move is anticipated to benefit approximately one crore taxpayers.
• A new initiative will be introduced to assist the middle class residing in rented accommodations in either purchasing or constructing their own homes.
• The extension of tax benefits for start-ups and investments by sovereign wealth or pension funds has been prolonged by 1 year until March 31, 2025.
• Capital expenditure has seen an 11% increase, reaching ₹11.11-lakh crore.
• The fiscal deficit for the fiscal year 2025 is projected at 5.1%, a reduction from the revised estimate of 5.8% in the fiscal year 2024.
• The government plans to borrow ₹14.13-lakh crore in the upcoming fiscal year, a decrease from ₹15.43 lakh crore in the fiscal year 2024.
• The projected nominal GDP growth for the fiscal year 2025 is set at 10.5%.
• Anticipated revenue from the disinvestment of central public sector enterprises (CPSEs) is pegged at ₹50,000 crore for the fiscal year 2025, up from ₹30,000 crore in the fiscal year 2024.
• The gross tax revenue target for the fiscal year 2025 has been raised by 11.46% to ₹38.31-lakh crore, compared to ₹34.37 lakh crore in the fiscal year 2024.
• The direct tax collection target is established at ₹21.99-lakh crore, while the indirect tax target is set at ₹16.22-lakh crore.
• The government is set to publish a white paper addressing the mismanagement of the economy before 2014.
• Next-generation reforms will be introduced in collaboration with states and relevant stakeholders.
• A high-powered panel will be formed by the government to tackle challenges related to population growth and demographic changes.
The focus has been on people-centric inclusive development through infrastructure building, digital public goods, formalization, prudent fiscal policies, financial sector strengthening, macroeconomic stability, and enabling participative growth across all regions.
Primary Areas of Focus
● Multidimensional poverty reduced significantly, with 25 crore people lifted out.
● Direct Benefit Transfers (DBT) led to Rs 2.7 lakh crore savings in leakage.
● 78-lakh street vendors assisted with credit under PM-SVANidhi.
● Youth empowerment through increased funding for PM-SHRI scholarship and Skill India Mission.
● Education infrastructure expanded - new IITs, Universities, AIIMS.
● 43 crore MUDRA loans sanctioned to promote entrepreneurship amongst youth.
Welfare of Farmers
● PM-KISAN provided direct support to 11.8 crore farmers
● Crop insurance to 4 crore farmers under PM Fasal Bima Yojana
● eNAM integrated 1,361 mandis, enabling ₹3 lakh crore trading
Women's Empowerment (Nari Shakti)
● 30 crore MUDRA loans to women entrepreneurs
● 28% increase in female higher education enrollment in 10 years
● 43% female enrollment in STEM courses
● 1 crore women assisted by SHGs to become Lakhpati Didis
● Rise in female labour force participation rate from 23.3% to 37%
● Increased procurement of wheat and rice to ensure MSP for farmers
● The focus on welfare schemes like PM-KISAN, crop insurance, eNAM and higher MSP procurement helped farmers. Women's empowerment was driven by access to credit, higher education and STEM skilling.
The budget reinforces India's commitment to become a $5 trillion economy with global leadership in sectors like electric mobility, energy transition, and technology. The growth orientation balances short-term priorities with the long-term vision.
The budget sets the foundation for achieving the vision of a ‘Viksit Bharat’ by 2047. It draws on India's demographic strengths of youth, its democratic credentials, and its diversity across states and regions. This new era of duty or ‘Kartavya Kaal’ focuses on national development with fresh energy.