Union Budget 2025-26 has been presented by Finance Minister Nirmala Sitharaman, and will play a key role in shaping India’s economy for the year ahead. As the new year begins, this budget is expected to focus on important reforms and priorities for the country. 

Union Budget 2025-26 has announced significant tax reforms, infrastructure development, and measures to boost economic growth. The budget is also expected to allocate more funds for education and healthcare and announce measures to boost the stock market and encourage investment. 

 In this article, we will look at the expected date, key highlights, and what to expect from the upcoming Union Budget 2025-26. This Budget 2025 is expected to be a crucial one, given the current economic scenario. 

What is the Budget?

A budget is an annual financial document that details estimated income and expenses for a specific period, typically one year. It serves as a framework for managing resources and achieving objectives like resource mobilization and fiscal stability.

In India, the national budget is drafted by the Budget Division of the Department of Economic Affairs (DEA) under the Ministry of Finance. It is then presented to Parliament for review and approval, guiding the country’s financial planning and supporting its economic and social policies.

Constitutional Provisions for Union Budget

In the constitution of India the Budget is not directly mentioned; it is referred to as Annual Financial Statement. Here are constitutional provisions which make the Budget necessary.

Union Budget 2025 Date and Timings

The constitution mandates the President to lay down the Annual Financial Statement (Union Budget) in the parliament. The Finance Minister on behalf of the President lays it down in Parliament on 1st February, 11 A.M IST.

Union Budget 2025 PDF Download

Here is the speech of Finance Minister Nirmala Sitaraman which provides an overview of the budget. 

Here is the actual Union Budget 2025 Document.

Union Budget 2025 Explained

Union Budget divides itself into two parts:

1. A)   Revenue Account: Transactions occurring within one year. Transactions on this account have no influence over assets and liability creation.
2. B) Capital Account: Transactions taking place over more than a year. Transactions on this account have no influence over assets and liability creation.

These accounts are further divided into 4 more parts by inclusion of expenditure and income sections in the above two parts.

Union Budget 2025 Key Terms

Following are the few terms that will help you understand the complexities of Union Budget:

• Revenue Receipts: Government income from taxes, fines, and services, without affecting assets or liabilities.
• Capital Receipts: Funds received from selling government assets or borrowing, impacting assets or liabilities.
• Revenue Expenditure: Regular government spending like salaries and subsidies, with no asset creation.
• Capital Expenditure: Spending on infrastructure and long-term assets, leading to economic growth.
• Deficit Budget: When expenditure exceeds income, leading to borrowing or fiscal imbalance.
• Surplus Budget: When income surpasses expenditure, creating excess funds.
• Direct Taxes: Taxes like income tax, paid directly by individuals or entities.
• Indirect Taxes: Taxes like GST, passed on from consumers to businesses and then to the government.
• Disinvestment: Selling PSUs or government stakes to generate capital receipts.
• Borrowing: Government loans that create a liability to repay in the future.
• Recovery of Loans: When the government recovers money from past loans, reducing assets but receiving funds.

Union Budget 2025 Highlights

Tax & Personal Finance

• Higher Tax Exemption: No income tax for earnings up to ₹12 lakh per year (up from ₹7 lakh). More savings for middle-class families.

Farmers & Rural Support

• Boost for Pulses & Cotton: Govt will buy more pulses and support farmers to reduce imports.
• More Farm Loans: Higher subsidized loans for farmers to improve agriculture.

Jobs & Welfare

• Gig Workers Support: Better access to healthcare and social benefits for gig workers like delivery partners and freelancers.

Infrastructure & Energy

• Big Push for Nuclear Power: Plan to generate 100 GW of nuclear power by 2047.

Economy & Fiscal Health

• Lower Fiscal Deficit: Govt aims to bring down the deficit to 4.4% of GDP.
• Planned Borrowing: Govt will borrow ₹14.82 trillion to manage expenses.

Who Gains & Who Loses?

• Winners: Middle-class earners (tax relief), FMCG & auto sectors (more spending).
• Losers: Insurance companies (fewer tax-saving insurance buyers).

Union Budget 2025 Tax Relief Breakdown

The standard deduction has been increased to ₹75,000, further reducing the taxable income for salaried individuals.

Thus, a salaried individual has to pay nil tax on incomes upto ₹12.75 lakh.

Securities Transaction Tax

The Securities Transaction Tax (STT) is a tax levied on the purchase and sale of securities, including stocks, bonds, and mutual funds. The government may announce a reduction in the STT rate to boost the stock market and encourage investment.

• In the lead-up to Union Budget 2025, the PHD Chamber of Commerce & Industry (PHDCCI) has urged Finance Minister Nirmala Sitharaman to abolish the Securities Transaction Tax (STT). The industry body argues that the recent hike in long-term capital gains tax on listed shares to 12.5% places it on par with other assets, making STT redundant. With STT collections reaching ₹40,114 crore in the current fiscal, the move is seen as a measure to reduce the tax burden on stock market investors and foster economic growth.

Budget 2025 FAQs