July 3, 2025
No CommentsBudget 2025 Key Highlights for UPSC Mains & Prelims
The Union Budget 2025‑26, presented on 1 February 2025, carries the theme “Sabka Vikas”, focusing on inclusive growth across sectors.
1. Taxation & Middle-Class Relief
-
Zero tax for incomes up to ₹12 lakh under the new regime; with a ₹75,000 standard deduction, income up to ₹12.75 lakh becomes tax‑free
-
TDS & TCS rationalization:
-
Senior citizen interest exemption doubled from ₹50k → ₹1 lakh,
-
Rent TDS threshold raised from ₹2.4 lakh → ₹6 lakh
-
- Digital compliance ease: Updated return filing window extended from 2 → 4 years
2. Fiscal Management & Expenditure
-
Fiscal deficit target set at 4.4% of GDP for 2025‑26
-
Capital expenditure allocation stands at ₹11.21 lakh crore (~3.1% of GDP)
3. Agriculture & Rural Focus
-
Prime Minister Dhan‑Dhanya Krishi Yojana across 100 districts: crop diversification, credit, irrigation, storage
-
Six‑year pulses mission: State procurement guarantees for toor, urad, masur; also boosts cotton R&D and fertilizer supply via a new urea plant
4. Growth Engines: MSMEs, Investment, Exports
-
MSMEs & manufacturing: Duty exemptions on open cells, LED/LCD panels, EV/mobile battery capital goods.
-
Export trade facilitation: Easier customs processes, leather and ship‑building duty breaks .
5. Financial Reforms & Regulatory Ease
-
FDI increase: Insurance FDI cap raised from 74% to 100%
-
Investment Friendliness Index and light-touch regulatory reform via FSDC mechanism.
6. Infrastructure & Mobility
-
Railways support: ₹2.52 lakh crore allocation; 200 new Vande Bharat trains announced
Why This Matters for UPSC Prelims
These highlights are directly aligned with the GS‑3 syllabus under Economic Development, Budgeting, and Inclusive Growth. Focus on:
-
Tax reforms, fiscal & capital outlay metrics
-
Key agriculture schemes and missions
-
Custom duties & MSME/export incentives
-
Infrastructure allocations & sectoral funding
Strategy Tip
Convert these into crisp prelims-friendly points:
-
Create comparative tables (e.g., previous vs current tax slabs, fiscal deficit targets).
-
Map schemes (“Dhan‑Dhanya” → food security), note launch timelines & objectives.
-
Link budget announcements to core concepts (e.g. why FDI cap matters for global competitiveness).
Latest Blogs
India’s Successful Space Missions from Chandrayaan to Gaganyaan
September 18, 2025
A Discussion on BRICS Expansion 2025: Opportunities and Challenges
September 11, 2025
Leave Comment