Budget statement 2025

The Union Budget 2025-26, presented by Finance Minister Nirmala Sitharaman, is a comprehensive roadmap aimed at accelerating India’s growth trajectory and realizing the vision of a ‘Viksit Bharat’ by 2047. With a strong emphasis on inclusive development, infrastructure, innovation, and sustainability, the budget seeks to address key challenges while unlocking opportunities across sectors. The government’s focus on enhancing middle-class spending power through substantial tax reforms is commendable and timely, as it will directly contribute to boosting economic activity. The emphasis on fiscal consolidation, alongside strategic investments in agriculture and infrastructure, demonstrates a commitment to sustainable development. While prioritizing infrastructure and capital expenditure, the government remains committed to fiscal consolidation. The fiscal deficit for FY25 is set at 4.8 per cent, with an estimated reduction to 4.4 per cent in FY26. This disciplined approach ensures that thecentral government debt remains on a declining trajectory as a percentage of GDP. In line with the government’s recognition of MSMEs as the ‘second engine’ of economic expansion, the 2025-26 Budget introduces key reforms to enhance financial accessibility, technological adoption, and market linkages. A notable step was the enhancement of the credit guarantee cover forMSMEs from Rs. 5 crores to Rs. 10 crores, leading to additional credit of Rs. 1.5 lakh crore over the next 5 years. The government’s vision aligns with broader industry expectations and takes significant strides in bolstering the MSME sector, setting the stage for sustained growth and competitiveness. While there is always room for further enhancements, the budget represents a decisive step inthe right direction. The Budget also presents a roadmap to reinforce India’s commitment to promote innovation and entrepreneurship. After doing away with Angel Tax during the last budget, the additional ₹10,000 crore Fund of Funds Scheme (FFS) and proposed Deep Tech Fund will provide crucial capital for startups, particularly in AI, Climate Tech, and Agri Tech. Enhanced MSME support and policies will improve ease of doing business and further accelerate growth for the future entrepreneurs. The new simplified taxation and regulatory framework will attract private capital, which in turn will further accelerate growth. In conclusion, the Union Budget 2025-26 lays a robust foundation for achieving a ‘Viksit Bharat’ by 2047. It prioritizes human capital development, enhancing healthcare, education, and nutrition, while significantly supporting agriculture and MSMEs. The budget also emphasizes urban infrastructure, clean energy initiatives, and tax reforms, fostering inclusive growth and sustainable economic progress.