February 01, 2025

Budget 2025: 10 key announcements

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Finance Minister Nirmala Sitharaman presented the Union Budget 2025, outlining reforms aimed at driving economic growth. Here are 10 key announcements.

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The government has increased the zero-tax threshold to ₹12 lakh from the existing ₹7 lakh limit.

1. Tax relief for middle class

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The government has set the fiscal deficit target to 4.8% for FY25 and 4.4% of GDP for FY26.

2. Fiscal deficit target

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The budget allocated ₹11.2 lakh crore for capital expenditure for FY26, lower than the ₹11.5 lakh crore allocation of FY25. 

3. Capex allocation

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The budget announced a new  scheme called the Prime Minister Krishi Yojana. This ₹20,000 crore scheme will benefit 1.75 crore farmers of India.

4. Support for agriculture sector

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₹30,000 crore allocated under the expanded PLI scheme to bolster production in key sectors, including electronics, textiles, and automobiles, and drive economic growth.

5. Manufacturing sector boost

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The government has allocated around ₹26,550 crore to the Ministry of New and Renewable Energy, including solar and wind initiatives, to promote sustainable development. 

6. Focus on green energy

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The healthcare sector received a total allocation of ₹98,311 crore, up from ₹89,287 crore in the previous fiscal year, prioritising the expansion of medical care and infrastructure.

7. Enhanced healthcare

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The central government will establish a new centre of excellence with an outlay of ₹500 crore, aiming to drive AI-powered innovation in education. 

8. Digital economy push

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The finance minister announced that gig workers will be provided healthcare under the PM Jan Arogya Yojana, benefitting around 1 crore gig workers.

9. Social welfare schemes

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The government announced a hike in the FDI limit for insurance from 74% to 100% with enhanced limit available for companies that invest the entire premium in India.

10. FDI reforms

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