The Union Budget
2025-26 is here, and it’s all about making life better for you—whether you’re a
taxpayer, a business owner, or someone who cares about India’s future. This
year’s budget focuses on giving more money back to the middle class, boosting
clean energy, improving infrastructure, and creating jobs—all while keeping the
country’s finances in check. Let’s break it down and see how it impacts you.
Tax Reforms: Big Relief for Middle-Class Taxpayers
Higher Tax Rebate: More People Pay Zero Tax
- What’s New: If you earn up to ₹12 lakh a year, you won’t have to pay any income tax. That’s up from
the previous limit of ₹7 lakh.
- Why It Matters: This means more money in your pocket to spend, save,
or invest.
Revised Tax Slabs: More Savings for the Middle Class
- New Slabs: The highest tax rate of 30% will now apply only if
you earn more than ₹24
lakh a year (up from ₹15 lakh).
- What It Means for You: Middle-class families will see a significant drop in
their tax bills, leaving more money for essentials or luxuries.
Impact on the Economy
- Boost in Spending: With more disposable income, people are likely to
spend more, which helps businesses grow.
- More Investments: Extra savings could flow into stocks, mutual funds,
or real estate, boosting the economy further.
Fiscal Discipline: Keeping Borrowing and Inflation in Check
- Lower Deficit: The government plans to reduce the fiscal deficit
to 4.4%
of GDP, down from 4.8%.
- Why This is Good: Less borrowing means lower interest rates and stable
prices, which is good for everyone.
Sectoral Outlook: Key Investments and Growth Plans
Energy Sector: Powering India’s Future
- 18% More Funding: The energy sector gets ₹81,174 crore, up from ₹68,769 crore last year.
- Nuclear Energy Push: India aims to produce 100 GW of nuclear energy by
2047, with ₹20,000 crore set aside
for small modular reactors (SMRs).
- Better Electricity: States will get incentives to improve power
distribution, making electricity more reliable and affordable.
Clean Technology: Building a Greener India
- Customs Duty Cuts: Critical materials like cobalt and lithium (used in
solar panels and EV batteries) will be duty-free.
- EV and Battery Manufacturing: More tax exemptions for equipment will boost local
production of EVs and batteries.
- What It Means: More jobs, cleaner air, and a stronger position in
the global clean energy market.
Water for All: Jal Jeevan Mission Extended
- Achievements So Far: Since 2019, 15 crore rural households (80% of rural India) have gotten access to clean
tap water.
- New Goal: The mission now aims for 100% coverage by 2028, with a focus on better infrastructure and
maintenance.
- Why It Matters: Clean water means healthier communities and stronger
rural economies.
Shipbuilding: Making India a Global Leader
- Financial Support: The government will revamp policies to make Indian
shipyards more competitive.
- Shipbreaking Incentives: New credit notes for recycling old ships will promote
a circular economy.
- What’s in It for You: More jobs in coastal areas and a stronger maritime
industry.
Tourism: Showcasing India’s Best
- Top 50 Destinations: The government will develop 50 top tourist spots in
partnership with states.
- Better Connectivity: A modified UDAN scheme will connect 120 new destinations, including hilly and North Eastern regions.
- Why This is Exciting: More tourists mean more business for local hotels,
restaurants, and shops.
Affordable Housing: Completing Stalled Projects
- SWAMIH Fund 2: A new ₹15,000 crore fund will help complete 1 lakh stalled homes.
- Progress So Far: The first SWAMIH fund has already completed 50,000 homes, with another 40,000 expected by 2025.
- What It Means for You: If you’ve been waiting for your home, this fund could
finally get it completed.
Conclusion
The Union Budget
2025-26 is a balanced mix of tax relief, infrastructure investment, and clean
energy growth. It’s designed to put more money in your pocket, create jobs, and
build a sustainable future for India. While the plans are ambitious, their
success will depend on how well they’re implemented. One thing’s for sure: this
budget has something for everyone.
FAQs
1. Who benefits the most from the new income tax changes?
Middle-class
taxpayers, especially those earning below ₹12 lakh annually, now pay zero tax.
2. How does the budget support clean energy?
Increased funding for
solar, EVs, and nuclear energy, plus duty exemptions for critical materials.
3. What is the impact on infrastructure spending?
Capital expenditure
has slowed down but remains at historically high levels compared to pre-2019
budgets.
4. How will the Jal Jeevan Mission help rural areas?
100% rural tap water
coverage by 2028, improving health and rural development.
5. What is SWAMIH Fund 2?
A ₹15,000 crore initiative to complete 1 lakh stalled homes, providing relief to buyers.