India’s Financial Future: Union Budget 2025 Breakdown
The Union Budget 2025, presented by Finance Minister Nirmala Sitharaman, is a bold manifesto for India’s journey toward becoming a Viksit Bharat (Developed India) by 2047.
Centered around the vision of “Sabka Vikas” (Development for All), the budget outlines a roadmap for inclusive progress through groundbreaking reforms, targeted investments, and a strong emphasis on social equity.
It places key focus on four primary drivers of economic growth: Agriculture, Micro, Small and Medium Enterprises (MSMEs), Capital Investment, and Exports.
Let’s check the important pillars shaping India’s future, with a focus on healthcare, taxation, education, renewable energy, and sustainability.
Healthcare Budget Allocation:
The healthcare sector receives an allocation of ₹98,311 crore in this year Union Budget 2025, showing the government’s commitment to bring medical services nationwide.
The budget also emphasizes the integration of technology in healthcare, allocating ₹500 crore for the development of AI-driven healthcare solutions.
This investment is expected to revolutionize medical education and patient care, particularly in rural areas where broadband connectivity to primary health centers will facilitate telemedicine services and bridge the gap in healthcare access.
The budget showcase India’s healthcare vision with a double focus on accessibility and innovation:
Cancer Care Revolution: Day Care Cancer Centres will be established in all district hospitals within 3 years, starting with 200 units in 2025–26. This initiative brings to reduce travel burdens for rural patients and ensure timely treatment.
Medical Education Expansion: To address the doctor-patient gap, 10,000 new medical college seats will be added in 2025–26, part of a 5-year plan to create 75,000 seats.
Affordable Medicines: Customs duties on 36 lifesaving drugs for cancer, rare diseases, and chronic conditions have been waived, easing financial strain on families.
Gig Worker Welfare: Over 1 crore gig workers will receive identity cards, healthcare under PM Jan Arogya Yojana, and e-Shram portal registration, bridging gaps in social security.
Income Tax Slab Charges 2025-26:
In a move to boost disposable income and stimulate consumption, the budget introduces significant changes to the income tax structure.
Under the new tax regime presented by our FM Nirmala Sitharaman, the basic limit has been raised to ₹12 lakh, with a standard deduction of ₹75,000, effectively making income up to ₹12.75 lakh from taxation.
The revised tax slabs are as follows:
- ₹0 – ₹4 lakh: Nil
- ₹4 lakh – ₹8 lakh: 5%
- ₹8 lakh – ₹12 lakh: 10%
- ₹12 lakh – ₹16 lakh: 15%
- ₹16 lakh – ₹20 lakh: 20%
- ₹20 lakh – ₹24 lakh: 25%
- Above ₹24 lakh: 30%
In a historic move, the budget prioritizes middle-class savings and consumption:
Zero Tax for Salaried Professionals: The new tax regime clears income up to ₹12.75 lakh Yearly (including a ₹75,000 standard deduction), freeing millions from tax burdens.
Simplified Taxation Structure: Income Tax Bill reduces litigation and compliance issues. The deadline for filing revised returns extends from 2 to 4 years, offering taxpayers greater flexibility.
Senior Citizen Relief: In Budget 2025, the government doubled the TDS exemption on senior citizens’ interest income to ₹1 lakh and raised the rent TDS threshold to ₹6 lakh annually, enhancing retirees’ cash flow.
Education Budget Allocation 2025:
The education sector has been granted a significant budget of ₹1.28 lakh crore, representing a 6.22% rise compared to the previous year.
Additionally, the Department of School Education & Literacy has secured its highest allocation to date at ₹78,572 crore, underscoring the government’s emphasis on strengthening foundational learning.
The budget invests heavily in nurturing innovation and bridging the digital divide:
Atal Tinkering Labs: 50,000 labs will be set up in government schools over five years, fostering creativity and scientific temper among students.
AI for Education: A ₹500 crore Centre of Excellence in Artificial Intelligence will develop adaptive learning tools and teacher training modules.
Digital Bharat: Broadband connectivity will reach all rural government schools and primary health centres under BharatNet, democratizing access to online resources.
Bharatiya Bhasha Pustak Scheme: Digital textbooks in Indian languages aim to preserve linguistic diversity while enhancing learning outcomes.
Renewable Energy Projects 2025:
Reaffirming its commitment to sustainability, the government allocates ₹26,549 crore to the Ministry of New and Renewable Energy, a 53.48% increase from the previous year.
Key projects include ₹600 crore for Green Energy Corridors to integrate renewable power into the national grid, and ₹2,600 crore for the KUSUM scheme promoting solar energy in agriculture.
India’s clean energy ambitions take center stage with:
Nuclear Energy Mission: A ₹20,000 crore outlay for Small Modular Reactors (SMRs) aims to operationalize five indigenously built reactors by 2033, reducing fossil fuel dependence.
EV Manufacturing Boost: Customs duty exemptions on capital goods for EV and mobile battery production will accelerate domestic manufacturing.
Shipbuilding Clusters: Tax incentives for raw materials in shipbuilding and a ₹25,000 crore Maritime Development Fund position India as a global maritime hub.
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Sustainable Development Goals 2025:
The budget aligns with the Sustainable Development Goals by focusing on inclusive growth and environmental sustainability.
Investments in AI-driven solutions and broadband connectivity enhance access to healthcare and education in rural areas, promoting equitable development.
The budget integrates sustainability across sectors:
Urban Renewal: A ₹1 lakh crore Urban Challenge Fund will transform Urban cities into growth hubs through creative redevelopment, water management, and sanitation projects.
Agricultural Resilience: The 6-year Aatmanirbharta in Pulses Mission targets self-sufficiency in tur, urad, and masoor, while the Makhana Board in Bihar will boost value-added processing.
Cultural Conservation: The Gyan Bharatam Mission will digitize and preserve over 1 crore manuscripts, safeguarding India’s intellectual heritage.
Union Budget 2025 isn’t just a financial plan—it’s a social contract. From cancer care for rural India to tax breaks for salaried professionals, it reflects a nuanced understanding of India’s aspirations.
As FM Sitharaman quoted Telugu poet Gurajada Appa Rao, A country is not just its soil; it is its people. This budget, with its human-centric design, strives to honour that vision.
For deeper insights, explore the Union Budget 2025–26 documents on India’s official portal.
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