Budget 2025: What FM Nirmala Sitharaman Offers For Taxpayers, Farmers, And Businessmen – Key Takeaways

Budget 2025: Union Finance Minister Nirmala Sitharaman began her eighth consecutive Union Budget presentation in the Lok Sabha at 11 AM, aiming to balance middle-class tax relief with the country’s economic growth needs. She has also set a new record as the only finance minister to present the budget for eight consecutive years and the first to do so in the third term of Prime Minister Narendra Modi's government. Earlier in the day, Sitharaman met President Droupadi Murmu to seek approval for the Budget.

Finance Minister Nirmala Sitharaman outlined the core priorities of Budget 2025. Let’s take a quick look at the key takeaways for the financial year 2025-26.

Key Takeaways Of The Union Budget 2025 

Kisan Credit Cards (KCC)

The scheme will continue to provide short-term loans to 7.7 crore farmers, fishermen, and dairy farmers. The loan limit under the modified interest subvention scheme will increase from ₹3,000 to ₹5,000, offering greater financial support for agriculture.

Boost To Tourism And Infrastructure

The government will promote medical tourism and "Heal in India" initiatives with private sector collaboration, including easier visa norms. The private sector will also get access to PM GatiShakti data and maps. Additionally, the top 22 tourist destinations will be developed in partnership with states to drive employment-led growth.

Expansion Of UDAN Scheme

The UDAN scheme has connected 88 airports and facilitated travel for 1.5 crore middle-class passengers. A modified UDAN will be launched to cover 120 new destinations, benefiting 4 crore additional passengers and enabling greenfield airports in Bihar.

Strengthening Healthcare

The government will add 10,000 new medical seats in colleges and hospitals this year, with a plan to increase 75,000 seats over the next five years to improve healthcare access.

Investment In People And Economy

Investment is a key focus, with the government prioritizing programs like Sashakt Anganwadi and Poshan 2.0, which provide nutritional support to 8 crore children, pregnant women, lactating mothers, and 20 lakh adolescent girls in aspirational districts and the Northeast. The budget for these programs will be increased.

Rationalization of TDS

Finance Minister Nirmala Sitharaman announced the rationalization of Tax Deducted at Source (TDS) by reducing the number of rates and thresholds for deduction. Additionally, the annual limit for TDS on rent has been raised from ₹2.40 lakh to ₹6 lakh, benefiting small taxpayers receiving lower rental payments.

Income Tax Exemption Limits Over the Years

The income tax exemption limit has progressively increased, providing substantial relief to taxpayers:

2005: ₹1 lakh
2012: ₹2 lakh
2014: ₹2.5 lakh
2019: ₹5 lakh
2023: ₹7 lakh
2025: ₹12 lakh

The latest increase to ₹12 lakh marks a significant tax relief for individuals.

Expansion of India Post Payments Bank & Insurance Sector Reforms

The government plans to deepen and expand the services of India Post Payments Bank in rural areas, increasing financial inclusion. Additionally, the Foreign Direct Investment (FDI) limit in the insurance sector will be raised from 74% to 100%, promoting greater foreign investment in the industry. 

Boost for Air Cargo & Horticultural Produce

The government will enhance infrastructure and warehousing facilities for air cargo, particularly for high-value perishable horticultural products, to support agricultural exports and supply chain efficiency.

Expansion Of Infrastructure Facilities In IIT Patna

In Budget 2025-26, FM Nirmala Sitharaman announced a National Institute of Food Technology in Bihar and the expansion of hostel and infrastructure facilities at IIT Patna.