Union Budget 2025: Major Tax Cuts, Agriculture Boost, And Economic Growth Measures

Key Announcements in Budget 2025

1. Tax Reforms: Relief for Middle-Class Taxpayers

The government has introduced significant income tax relief measures to boost disposable income and consumer spending:

Income Range (₹)	Previous Tax Rate	New Tax Rate (2025)
0 - 5 lakh	No Tax	No Tax
5 - 12 lakh	10%	No Tax
12 - 18 lakh	20%	10%
Above 18 lakh	30%	25%

• The new tax reform benefits taxpayers because individuals who make less than ₹12 lakh per year can now have no income tax obligations.

• The tax rates dropped for taxpayers whose income falls between ₹12-18 lakh to 10% from the previous 20% rate.

• The standard deduction available to workers in salaried positions received an increase through government policy.

• These reforms serve two main purposes: they enhance purchasing capabilities and promote saving habits to achieve economic expansion.

2. Agricultural Reforms and Rural Development

The government has launched different agricultural initiatives to enhance agricultural productivity while improving rural infrastructure systems.

PM Dhandhanya Krishi Yojana:

• The programme will focus on enhancing yield levels in 100 districts that maintain low productivity standards.

• The initiative reaches out to 1.7 crore farmers to enhance micro-level storage facilities.

National Mission on High-Yield Seeds:

• This initiative operates to distribute seed varieties that fight disease infections while being tolerant to climate variations.

• The project works to enhance productivity levels of agricultural output while diminishing the need for imports.

Boost to pulses and oilseed production:

• The government works to enhance both pulses and oilseed cultivation rates within the country.

• The government focuses special attention on the cultivation of urad, toor, and masoor dal to lower national import requirements.

• The government dedicates funds toward extending research programmes to advance crop yields.

Makhana Board in Bihar:

• A specific Makhana Board institution will assist farmers in cultivating makhana (fox nuts).

• The organisation delivers financial funds alongside special training and marketing support to recipients.

The planned reforms will bring about enhanced farmer earnings at the same time they will boost agricultural outputs while decreasing import needs.

Also Read: 20 Easy Ways to Save Income Tax in 2025

4. Infrastructure and Tourism Development

The government aims at economic growth by investing resources in essential infrastructure projects.

Increased Capital Expenditure (CapEx):

• Infrastructure projects receive funding at the amount of ₹11 lakh crore through government financial support.

• The government dedicates its attention to railroad and road infrastructure development along with implementing smart city developments.

Tourism Sector Boost:

• The government established fresh policies to position India as an international tourist destination.

• Investment in heritage site development and eco-tourism.

The measures will build job opportunities throughout India while boosting its position in world economics.

Also Read: Difference Between GST Compensation Cess And Income Tax Cess?

5. Energy and Sustainability Initiatives

The budget presents an aggressive initiative for developing renewable energy while advancing sustainability objectives.

Nuclear Energy Mission:

• The national goal includes establishing a total of 100 GW of nuclear energy capacity by the year 2047.

• Nuclear power facilities will receive additional development in important state regions.

Renewable Energy Investments:

• More government money will support wind power along with solar energy installations.

• Encouraging public-private partnerships for green energy initiatives.

The campaigns fit with India's goals to minimise carbon emissions and secure nationwide power stability.

6. Fiscal Management and Borrowing Plans

The government aims to maintain fiscal discipline while continuing to invest in growth-oriented projects:

Fiscal Parameter	2024-25 Target
Fiscal Deficit	4.4% of GDP
Total Government Borrowing	₹14.82 lakh crore

• Financial stability requires the reduction of fiscal deficit as the main priority.

• Strategic debt management practices from the government will facilitate capital investment through controlled borrowing rates.