{"id":66930,"date":"2025-01-28T15:54:47","date_gmt":"2025-01-28T10:24:47","guid":{"rendered":"https://www.5paisa.com/finschool/?p=66930"},"modified":"2025-03-11T11:57:20","modified_gmt":"2025-03-11T06:27:20","slug":"union-budget-2025-key-expectations","status":"publish","type":"post","link":"https://www.5paisa.com/finschool/union-budget-2025-key-expectations/","title":{"rendered":"Union Budget 2025 -Key Expectations,Infrastructure, Tax Breaks, and More"},"content":{"rendered":"\u003cdiv data-elementor-type=\u0022wp-post\u0022 data-elementor-id=\u002266930\u0022 class=\u0022elementor elementor-66930\u0022\u003e\u003csection class=\u0022elementor-section elementor-top-section elementor-element elementor-element-180a7ab elementor-section-boxed elementor-section-height-default elementor-section-height-default\u0022 data-id=\u0022180a7ab\u0022 data-element_type=\u0022section\u0022\u003e\u003cdiv class=\u0022elementor-container elementor-column-gap-default\u0022\u003e\u003cdiv class=\u0022elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-cac4104\u0022 data-id=\u0022cac4104\u0022 data-element_type=\u0022column\u0022\u003e\u003cdiv class=\u0022elementor-widget-wrap elementor-element-populated\u0022\u003e\u003cdiv class=\u0022elementor-element elementor-element-cc7d404 elementor-widget elementor-widget-text-editor\u0022 data-id=\u0022cc7d404\u0022 data-element_type=\u0022widget\u0022 data-widget_type=\u0022text-editor.default\u0022\u003e\u003cdiv class=\u0022elementor-widget-container\u0022\u003e\u003cp\u003eWith the highly anticipated \u003cstrong\u003eUnion Budget 2025\u003c/strong\u003e around the corner, expectations are mounting for significant policy announcements that will steer India’s economic future. Important topics including GDP growth in 2025, tax reforms in 2025, and economic revival are anticipated to be covered by Finance Minister Nirmala Sitharaman. The budget is also anticipated to prioritize sustainable development, affordable housing, infrastructure investment, and tax reduction in 2025. The budget for this year promises to promote strong growth and guarantee a better, more prosperous future for the nation.\u003c/p\u003e\u003cp\u003e\u003cimg fetchpriority=\u0022high\u0022 decoding=\u0022async\u0022 class=\u0022aligncenter wp-image-66933 size-full\u0022 src=\u0022https://www.5paisa.com/marathi/finschool/wp-content/uploads/2025/01/Budget-2025.png\u0022 alt=\u0022Union Budget 2025\u0022 width=\u00221400\u0022 height=\u0022800\u0022 srcset=\u0022https://www.5paisa.com/marathi/finschool/wp-content/uploads/2025/01/Budget-2025.png 1400w, https:/www.5paisa.com/finschool/wp-content/uploads/2025/01/Budget-2025-300x171.png 300w, https:/www.5paisa.com/finschool/wp-content/uploads/2025/01/Budget-2025-1024x585.png 1024w, https:/www.5paisa.com/finschool/wp-content/uploads/2025/01/Budget-2025-768x439.png 768w, https:/www.5paisa.com/finschool/wp-content/uploads/2025/01/Budget-2025-50x29.png 50w, https:/www.5paisa.com/finschool/wp-content/uploads/2025/01/Budget-2025-100x57.png 100w, https:/www.5paisa.com/finschool/wp-content/uploads/2025/01/Budget-2025-150x86.png 150w\u0022 sizes=\u0022(max-width: 1400px) 100vw, 1400px\u0022 /\u003e\u003c/p\u003e\u003col\u003e\u003cli\u003e\u003ch3\u003e\u003cstrong\u003eTax Reforms 2025\u003c/strong\u003e:\u003c/h3\u003e\u003c/li\u003e\u003c/ol\u003e\u003cp\u003e\u003cimg decoding=\u0022async\u0022 class=\u0022aligncenter wp-image-66934 size-full\u0022 src=\u0022https://www.5paisa.com/marathi/finschool/wp-content/uploads/2025/01/Tax-Reforms-Expectations-Union-Budget-2025.png\u0022 alt=\u0022Tax Reforms Expectations Union Budget 2025\u0022 width=\u00221400\u0022 height=\u0022800\u0022 srcset=\u0022https://www.5paisa.com/marathi/finschool/wp-content/uploads/2025/01/Tax-Reforms-Expectations-Union-Budget-2025.png 1400w, https:/www.5paisa.com/finschool/wp-content/uploads/2025/01/Tax-Reforms-Expectations-Union-Budget-2025-300x171.png 300w, https:/www.5paisa.com/finschool/wp-content/uploads/2025/01/Tax-Reforms-Expectations-Union-Budget-2025-1024x585.png 1024w, https:/www.5paisa.com/finschool/wp-content/uploads/2025/01/Tax-Reforms-Expectations-Union-Budget-2025-768x439.png 768w, https:/www.5paisa.com/finschool/wp-content/uploads/2025/01/Tax-Reforms-Expectations-Union-Budget-2025-50x29.png 50w, https:/www.5paisa.com/finschool/wp-content/uploads/2025/01/Tax-Reforms-Expectations-Union-Budget-2025-100x57.png 100w, https:/www.5paisa.com/finschool/wp-content/uploads/2025/01/Tax-Reforms-Expectations-Union-Budget-2025-150x86.png 150w\u0022 sizes=\u0022(max-width: 1400px) 100vw, 1400px\u0022 /\u003e\u003c/p\u003e\u003cul\u003e\u003cli\u003eSignificant changes in tax policies are anticipated, particularly around income tax. This could include changes in tax slabs and rates to provide relief to taxpayers.\u003c/li\u003e\u003cli\u003eA higher basic exemption limit could be introduced, making the tax system more progressive. Additionally, reforms are expected to simplify tax compliance and administration, enhancing ease of doing business.\u003c/li\u003e\u003cli\u003eThe basic exemption limit under the new regime is expected to increase from \u003cstrong\u003e 3 lakhs to Rs. 5 lakhs\u003c/strong\u003e, giving relief to individual taxpayers and boosting consumption and disposable income.\u003c/li\u003e\u003cli\u003eThe government is anticipated to raise the \u003cstrong\u003eSection 80C cap, which has been at Rs. 1.5 lakhs since 2014, to Rs. 2 lakhs. \u003c/strong\u003e\u003c/li\u003e\u003cli\u003eTo encourage homeownership and support the expansion of the real estate industry, the government may raise the deduction limit under \u003cstrong\u003esection 24(b) on interest on home loans from Rs. 2 lakhs to Rs. 3 lakhs.\u003c/strong\u003e\u003c/li\u003e\u003cli\u003eOne of the main factors luring investors to India has been the \u003cstrong\u003e15% tax rate reduction provided under Section 115BAB \u003c/strong\u003efor new domestic manufacturing firms.\u003c/li\u003e\u003cli\u003eExtending this rate for businesses that begin operations after April 1, 2024, would continue to spur growth as it expired in March 2024.\u003c/li\u003e\u003cli\u003eFurthermore, a suggestion has been made to provide a \u003cstrong\u003e15% tax rate comparable to that of the Global Capability Centres (GCCs),\u003c/strong\u003e which currently number 1,700 and are expanding, in order to support their growth and job creation.\u003c/li\u003e\u003cli\u003eThe government may implement new production-linked incentives for research and development (R\u0026amp;D) endeavours in order to promote innovation.\u003c/li\u003e\u003cli\u003eThese can include extra deductions for particular R\u0026amp;D expenses in accordance with predetermined standards, like higher capital investment, employment creation, or turnover.\u003c/li\u003e\u003c/ul\u003e\u003col start=\u00222\u0022\u003e\u003cli\u003e\u003ch3\u003e\u003cstrong\u003eStandard Deduction Increase\u003c/strong\u003e:\u003cimg decoding=\u0022async\u0022 class=\u0022aligncenter wp-image-66935 size-full\u0022 src=\u0022https://www.5paisa.com/marathi/finschool/wp-content/uploads/2025/01/Standard-Deductions.png\u0022 alt=\u0022Standard Deductions\u0022 width=\u00221400\u0022 height=\u0022800\u0022 srcset=\u0022https://www.5paisa.com/marathi/finschool/wp-content/uploads/2025/01/Standard-Deductions.png 1400w, https:/www.5paisa.com/finschool/wp-content/uploads/2025/01/Standard-Deductions-300x171.png 300w, https:/www.5paisa.com/finschool/wp-content/uploads/2025/01/Standard-Deductions-1024x585.png 1024w, https:/www.5paisa.com/finschool/wp-content/uploads/2025/01/Standard-Deductions-768x439.png 768w, https:/www.5paisa.com/finschool/wp-content/uploads/2025/01/Standard-Deductions-50x29.png 50w, https:/www.5paisa.com/finschool/wp-content/uploads/2025/01/Standard-Deductions-100x57.png 100w, https:/www.5paisa.com/finschool/wp-content/uploads/2025/01/Standard-Deductions-150x86.png 150w\u0022 sizes=\u0022(max-width: 1400px) 100vw, 1400px\u0022 /\u003e\u003c/h3\u003e\u003c/li\u003e\u003c/ol\u003e\u003cp style=\u0022padding-left: 40px;\u0022\u003eIn the present tax regime, the standard deduction is a flat amount deducted from the income of salaried individuals to ease their tax liability. It\u0026#8217;s currently set at:\u003c/p\u003e\u003cul\u003e\u003cli\u003e\u003cstrong\u003e₹75,000\u003c/strong\u003e under the new tax regime\u003c/li\u003e\u003cli\u003e\u003cstrong\u003e₹50,000\u003c/strong\u003e under the old tax regime.\u003c/li\u003e\u003cli\u003eThere is a growing expectation that the \u003cstrong\u003estandard deduction limit will be increased to ₹1 lakh under both the new and old regimes. \u003c/strong\u003e\u003c/li\u003e\u003cli\u003eThis increment aims to provide significant tax relief and increase disposable income for salaried taxpayers. With an increased standard deduction, taxpayers could see a reduction in their taxable income, leading to lower tax liabilities.\u003c/li\u003e\u003cli\u003eThis essentially translates to more money in the hands of the working population. The standard deduction does not require any proof or documentation, making it a hassle-free perk.\u003c/li\u003e\u003cli\u003eAn increase would further simplify the tax filing process for a larger segment of taxpayers. Higher disposable income means more spending power, potentially leading to increased consumer spending and a positive impact on the economy.\u003c/li\u003e\u003cli\u003e\u003cstrong\u003eThe last increment in standard deduction was from ₹50,000 to ₹75,000 in 2024, which provided savings of up to ₹17,500 per year\u003c/strong\u003e. Despite this relief, the cost of living continued to rise, prompting calls for further adjustment.\u003c/li\u003e\u003cli\u003e\u003cstrong\u003eThe expected increase to ₹1 lakh is seen as a necessary measure to support the middle class in managing daily expenses amidst inflationary pressure.\u003c/strong\u003e\u003c/li\u003e\u003c/ul\u003e\u003col start=\u00223\u0022\u003e\u003cli\u003e\u003ch3\u003e\u003cstrong\u003eBoost to Capital Expenditure\u003c/strong\u003e.\u003c/h3\u003e\u003c/li\u003e\u003c/ol\u003e\u003cp\u003e\u003cimg loading=\u0022lazy\u0022 decoding=\u0022async\u0022 class=\u0022aligncenter wp-image-66936 size-full\u0022 src=\u0022https://www.5paisa.com/marathi/finschool/wp-content/uploads/2025/01/Capital-Expenditure.png\u0022 alt=\u0022Capital Expenditure\u0022 width=\u00221400\u0022 height=\u0022800\u0022 srcset=\u0022https://www.5paisa.com/marathi/finschool/wp-content/uploads/2025/01/Capital-Expenditure.png 1400w, https:/www.5paisa.com/finschool/wp-content/uploads/2025/01/Capital-Expenditure-300x171.png 300w, https:/www.5paisa.com/finschool/wp-content/uploads/2025/01/Capital-Expenditure-1024x585.png 1024w, https:/www.5paisa.com/finschool/wp-content/uploads/2025/01/Capital-Expenditure-768x439.png 768w, https:/www.5paisa.com/finschool/wp-content/uploads/2025/01/Capital-Expenditure-50x29.png 50w, https:/www.5paisa.com/finschool/wp-content/uploads/2025/01/Capital-Expenditure-100x57.png 100w, https:/www.5paisa.com/finschool/wp-content/uploads/2025/01/Capital-Expenditure-150x86.png 150w\u0022 sizes=\u0022(max-width: 1400px) 100vw, 1400px\u0022 /\u003e\u003c/p\u003e\u003cul\u003e\u003cli\u003eCapital expenditure (Capex) refers to the funds used by the government to acquire or upgrade physical assets such as infrastructure, buildings, and equipment. This spending is essential for creating future benefits and is a key component in stimulating economic growth.\u003c/li\u003e\u003cli\u003e\u003cstrong\u003eIn the Union Budget 2025, an increase in capital expenditure is anticipated, aiming for a growth rate of around 14% compared to the previous budget. This would mean an allocation of approximately ₹11 trillion for various infrastructure projects.\u003c/strong\u003e\u003c/li\u003e\u003cli\u003eSignificant investments are expected in the transportation sector, covering roads, railways, airports, and ports to improve connectivity and reduce logistics costs.\u003c/li\u003e\u003cli\u003eFocus on developing smart cities, enhancing urban infrastructure, and improving public amenities will be a priority.\u003c/li\u003e\u003cli\u003eProjects related to water supply and sanitation will receive funding to ensure access to clean water and improved sanitation facilities in urban and rural areas.\u003c/li\u003e\u003cli\u003eIncreased capital expenditure is expected to generate employment opportunities, particularly in the construction and infrastructure sectors.\u003c/li\u003e\u003cli\u003eBy improving infrastructure, the government aims to enhance the overall productivity and efficiency of the economy, leading to sustained economic growth. Better infrastructure can attract private investments, both domestic and foreign, boosting economic activities and contributing to GDP growth. Balancing increased capital expenditure with fiscal discipline is essential. \u003cstrong\u003eThe expected fiscal deficit target is projected between 4.7% and 4.8% of GDP for FY25\u003c/strong\u003e\u003c/li\u003e\u003c/ul\u003e\u003col start=\u00224\u0022\u003e\u003cli\u003e\u003ch3\u003e\u003cstrong\u003eAgricultural Sector Support\u003c/strong\u003e:\u003c/h3\u003e\u003c/li\u003e\u003c/ol\u003e\u003cp\u003e\u003cimg loading=\u0022lazy\u0022 decoding=\u0022async\u0022 class=\u0022aligncenter wp-image-66937 size-full\u0022 src=\u0022https://www.5paisa.com/marathi/finschool/wp-content/uploads/2025/01/Agriculture.png\u0022 alt=\u0022Agriculture\u0022 width=\u00221400\u0022 height=\u0022800\u0022 srcset=\u0022https://www.5paisa.com/marathi/finschool/wp-content/uploads/2025/01/Agriculture.png 1400w, https:/www.5paisa.com/finschool/wp-content/uploads/2025/01/Agriculture-300x171.png 300w, https:/www.5paisa.com/finschool/wp-content/uploads/2025/01/Agriculture-1024x585.png 1024w, https:/www.5paisa.com/finschool/wp-content/uploads/2025/01/Agriculture-768x439.png 768w, https:/www.5paisa.com/finschool/wp-content/uploads/2025/01/Agriculture-50x29.png 50w, https:/www.5paisa.com/finschool/wp-content/uploads/2025/01/Agriculture-100x57.png 100w, https:/www.5paisa.com/finschool/wp-content/uploads/2025/01/Agriculture-150x86.png 150w\u0022 sizes=\u0022(max-width: 1400px) 100vw, 1400px\u0022 /\u003e\u003c/p\u003e\u003cul\u003e\u003cli\u003eThe agricultural sector is a critical pillar of India\u0026#8217;s economy, supporting a significant portion of the population and contributing substantially to the GDP.\u003c/li\u003e\u003cli\u003eEfforts are anticipated to enhance financial inclusion for farmers, particularly small and marginal ones.\u003c/li\u003e\u003cli\u003eAgricultural credit disbursements are expected to increase, with a focus on innovative financing models to make credit more accessible and affordable.\u003c/li\u003e\u003cli\u003eEnhancing credit access allows farmers to invest in quality seeds, fertilizers, and modern farming practices, ultimately improving productivity and income levels\u003c/li\u003e\u003cli\u003eUpgraded irrigation systems to ensure efficient water use, addressing the scarcity of water in many regions Expanded and improved cold storage facilities to minimize wastage of perishable goods Better rural road networks to facilitate easier transportation of goods from farms to markets. Adoption of digital tools and technologies to enhance productivity, transparency, and market access for farmers.\u003c/li\u003e\u003cli\u003eLegal guarantees for MSPs are expected to provide financial security for farmers. Ensuring that farmers receive a fair price for their produce, even during market fluctuations, helps in recovering production costs and reduces distress selling.\u003c/li\u003e\u003cli\u003eThe government aims to support and empower women in agriculture. Increased credit access and leadership opportunities for women farmers and entrepreneurs will contribute to rural economic growth and gender equality in the agricultural sector.\u003c/li\u003e\u003c/ul\u003e\u003cp style=\u0022padding-left: 40px;\u0022\u003e\u003cstrong\u003eSustainability and Climate Resilience\u003c/strong\u003e\u003c/p\u003e\u003cp style=\u0022padding-left: 40px;\u0022\u003eFocus on sustainable farming practices to mitigate the impacts of climate change.\u003c/p\u003e\u003cul\u003e\u003cli\u003e\u003cstrong\u003eMicro-Irrigation Systems\u003c/strong\u003e: Promoting schemes like Per Drop More Crop (PDMC).\u003c/li\u003e\u003cli\u003e\u003cstrong\u003eCrop Diversification\u003c/strong\u003e: Incentivizing the cultivation of climate-resilient crops such as millets, oilseeds, and pulses.\u003c/li\u003e\u003cli\u003e\u003cstrong\u003eRenewable Energy\u003c/strong\u003e: Integrating solar energy installations with irrigation systems to enhance energy efficiency and reduce costs. Policy supports to boost investments in agricultural R\u0026D. Encouraging innovations in seed technology, sustainable fertilizers, and digital agriculture to optimize yields and ensure environmental sustainability\u003c/li\u003e\u003c/ul\u003e\u003col start=\u00225\u0022\u003e\u003cli\u003e\u003ch3\u003e\u003cstrong\u003eEducation Sector Reforms\u003c/strong\u003e:\u003c/h3\u003e\u003c/li\u003e\u003c/ol\u003e\u003cp\u003e\u003cimg loading=\u0022lazy\u0022 decoding=\u0022async\u0022 class=\u0022aligncenter wp-image-66938 size-full\u0022 src=\u0022https://www.5paisa.com/marathi/finschool/wp-content/uploads/2025/01/Education.png\u0022 alt=\u0022Education\u0022 width=\u00221400\u0022 height=\u0022800\u0022 srcset=\u0022https://www.5paisa.com/marathi/finschool/wp-content/uploads/2025/01/Education.png 1400w, https:/www.5paisa.com/finschool/wp-content/uploads/2025/01/Education-300x171.png 300w, https:/www.5paisa.com/finschool/wp-content/uploads/2025/01/Education-1024x585.png 1024w, https:/www.5paisa.com/finschool/wp-content/uploads/2025/01/Education-768x439.png 768w, https:/www.5paisa.com/finschool/wp-content/uploads/2025/01/Education-50x29.png 50w, https:/www.5paisa.com/finschool/wp-content/uploads/2025/01/Education-100x57.png 100w, https:/www.5paisa.com/finschool/wp-content/uploads/2025/01/Education-150x86.png 150w\u0022 sizes=\u0022(max-width: 1400px) 100vw, 1400px\u0022 /\u003e\u003c/p\u003e\u003cul\u003e\u003cli\u003eIndia’s education sector is poised for transformative reforms in this Union Budget. The focus is multifaceted, ranging from enhancing digital infrastructure to broadening access to higher education. In 2024, a significant allocation of ₹1.12 lakh crore was directed towards digital learning initiatives, including virtual labs and the Digital University initiative.\u003c/li\u003e\u003cli\u003e\u003cstrong\u003eThe 2025 Budget is expected to build on this foundation by increasing investments in technology integration, particularly in AI, machine learning, and data sciences\u003c/strong\u003e.\u003c/li\u003e\u003cli\u003eThis will involve improving internet connectivity in rural areas and providing affordable devices to students, aiming to bridge the digital divide and ensure that students from all backgrounds have equal access to quality education.\u003c/li\u003e\u003cli\u003eAdditionally, there is an emphasis on updating curricula to include industry-relevant skills, particularly in emerging fields like AI, cloud computing, and data visualisation.\u003c/li\u003e\u003cli\u003eFunding and policy reforms are critical. With India\u0026#8217;s public spending on education below 3% of GDP, there is a push for increased funding to ensure the growth and accessibility of education. Stakeholders call for allocating 6% of GDP to educational initiatives, focusing on infrastructure, teacher training, and digitalization.\u003c/li\u003e\u003cli\u003eMoreover, strengthening industry-academia partnerships can enhance job readiness among graduates. Initiatives such as educational loans for economically weaker students, funding for STEM research, and skill development programs are essential steps towards making education more affordable and accessible.\u003c/li\u003e\u003cli\u003eEnhancing hands-on training and providing internships in real-world settings is also crucial for preparing students to enter the labour market. By fostering a globally competitive workforce, India can significantly boost its economic growth.\u003c/li\u003e\u003cli\u003eThe 2025 Budget is expected to focus on these key areas to build a future-ready education system that aligns with global trends and addresses the unique challenges faced by India\u0026#8217;s diverse education ecosystem\u003c/li\u003e\u003c/ul\u003e\u003col start=\u00226\u0022\u003e\u003cli\u003e\u003ch3\u003e\u003cstrong\u003eHealthcare Investments\u003c/strong\u003e:\u003c/h3\u003e\u003c/li\u003e\u003c/ol\u003e\u003cp\u003e\u003cimg loading=\u0022lazy\u0022 decoding=\u0022async\u0022 class=\u0022aligncenter wp-image-66940 size-full\u0022 src=\u0022https://www.5paisa.com/marathi/finschool/wp-content/uploads/2025/01/Healthcare-1.png\u0022 alt=\u0022Healthcare\u0022 width=\u00221400\u0022 height=\u0022800\u0022 srcset=\u0022https://www.5paisa.com/marathi/finschool/wp-content/uploads/2025/01/Healthcare-1.png 1400w, https:/www.5paisa.com/finschool/wp-content/uploads/2025/01/Healthcare-1-300x171.png 300w, https:/www.5paisa.com/finschool/wp-content/uploads/2025/01/Healthcare-1-1024x585.png 1024w, https:/www.5paisa.com/finschool/wp-content/uploads/2025/01/Healthcare-1-768x439.png 768w, https:/www.5paisa.com/finschool/wp-content/uploads/2025/01/Healthcare-1-50x29.png 50w, https:/www.5paisa.com/finschool/wp-content/uploads/2025/01/Healthcare-1-100x57.png 100w, https:/www.5paisa.com/finschool/wp-content/uploads/2025/01/Healthcare-1-150x86.png 150w\u0022 sizes=\u0022(max-width: 1400px) 100vw, 1400px\u0022 /\u003e\u003c/p\u003e\u003cul\u003e\u003cli\u003eUnion Budget 2025 promises to be pivotal for India’s healthcare sector, with an emphasis on accessibility, affordability, and digital transformation. \u003cstrong\u003eBuilding on the previous year’s allocation of ₹91,000 crore, this year’s budget is expected to prioritize the expansion of digital health infrastructure under the Ayushman Bharat Digital Mission (ABDM).\u003c/strong\u003e\u003c/li\u003e\u003cli\u003eSignificant investments in telemedicine services, AI-driven diagnostics, and electronic health records (EHRs) are anticipated. These measures aim to bridge the urban-rural healthcare divide, ensuring that remote communities have access to quality healthcare services. \u003cstrong\u003eAnother major focus is on enhancing public health infrastructure, with proposals to increase healthcare spending to 2.5-3% of GDP. \u003c/strong\u003e\u003c/li\u003e\u003cli\u003eThis includes investing in primary healthcare facilities, improving disease surveillance systems under the PM-Ayushman Bharat Health Infrastructure Mission, and upgrading district hospitals.\u003c/li\u003e\u003cli\u003eAffordability remains a pressing issue, as nearly 63% of medical expenses are borne out-of-pocket by patients.\u003c/li\u003e\u003cli\u003eExpanding insurance coverage under Ayushman Bharat to include outpatient services and preventive care, along with rationalizing GST rates for medical devices and diagnostics, could help alleviate financial burdens. Further, the budget is expected to support domestic manufacturing of medical devices and pharmaceuticals through the Production Linked Incentive (PLI) scheme.\u003c/li\u003e\u003c/ul\u003e\u003ch3\u003e\u003cstrong\u003e       7. \u003c/strong\u003e\u003cstrong\u003eEncouragement for Electric Vehicles (EVs)\u003c/strong\u003e:\u003c/h3\u003e\u003cp\u003e\u003cimg loading=\u0022lazy\u0022 decoding=\u0022async\u0022 class=\u0022aligncenter wp-image-66943 size-full\u0022 src=\u0022https://www.5paisa.com/marathi/finschool/wp-content/uploads/2025/01/Electric-Vehicles.png\u0022 alt=\u0022Electric Vehicles\u0022 width=\u00221400\u0022 height=\u0022800\u0022 srcset=\u0022https://www.5paisa.com/marathi/finschool/wp-content/uploads/2025/01/Electric-Vehicles.png 1400w, https:/www.5paisa.com/finschool/wp-content/uploads/2025/01/Electric-Vehicles-300x171.png 300w, https:/www.5paisa.com/finschool/wp-content/uploads/2025/01/Electric-Vehicles-1024x585.png 1024w, https:/www.5paisa.com/finschool/wp-content/uploads/2025/01/Electric-Vehicles-768x439.png 768w, https:/www.5paisa.com/finschool/wp-content/uploads/2025/01/Electric-Vehicles-50x29.png 50w, https:/www.5paisa.com/finschool/wp-content/uploads/2025/01/Electric-Vehicles-100x57.png 100w, https:/www.5paisa.com/finschool/wp-content/uploads/2025/01/Electric-Vehicles-150x86.png 150w\u0022 sizes=\u0022(max-width: 1400px) 100vw, 1400px\u0022 /\u003e\u003c/p\u003e\u003cp\u003e \u003c/p\u003e\u003cul\u003e\u003cli\u003eThe upcoming Union Budget 2025-26 is expected to prioritize the growth of the \u003cstrong\u003eelectric vehicle (EV) sector by extending financial support through subsidies and tax rebates, \u003c/strong\u003einvesting in robust public charging infrastructure, and simplifying the GST structure for EV-related products.\u003c/li\u003e\u003cli\u003eLocal battery manufacturing is anticipated to receive a boost with reduced GST rates, while targeted subsidies and reduced interest rates on EV loans aim to make EVs more affordable.\u003c/li\u003e\u003cli\u003eAdditionally, the budget may promote innovation through a government-backed fund for private sector R\u0026amp;D, ultimately supporting environmental sustainability and energy security.\u003c/li\u003e\u003c/ul\u003e\u003ch3\u003e\u003cstrong\u003e      8. Fiscal Consolidation\u003c/strong\u003e:\u003c/h3\u003e\u003cul\u003e\u003cli\u003e\u003cstrong\u003eThe Union Budget 2025-26 is expected to prioritize fiscal consolidation by adhering to the government\u0026#8217;s target of reducing the fiscal deficit to 4.5% of GDP by FY26. \u003c/strong\u003e\u003c/li\u003e\u003cli\u003eThis involves maintaining a balance between reducing public debt and continuing to support economic growth through investments in infrastructure.\u003c/li\u003e\u003cli\u003eThe government aims to achieve fiscal consolidation without sacrificing growth objectives, which means measures such as moderated income tax cuts and controlled public spending will be critical.\u003c/li\u003e\u003cli\u003eThere will likely be a focused approach on enhancing tax efficiency, managing debt prudently, and fostering a stable economic environment for sustained growth\u003c/li\u003e\u003c/ul\u003e\u003ch3\u003e\u003cstrong\u003e     9. Incentives for Start-ups and MSMEs\u003c/strong\u003e:\u003c/h3\u003e\u003cul\u003e\u003cli\u003e\u003cstrong\u003eThe Union Budget 2025-26 is anticipated to bring significant focus on start-ups and MSMEs by offering tax reliefs, enhanced credit access, and lowered compliance burdens. \u003c/strong\u003e\u003c/li\u003e\u003cli\u003eProposals include simplified GST structures, reduced tax rates, and subsidies tailored for these ventures to stimulate growth.\u003c/li\u003e\u003cli\u003eThe government is also expected to introduce measures for better access to working capital, such as streamlined loan approval processes and increased limits for credit guarantee schemes.\u003c/li\u003e\u003cli\u003eAdditionally, incentives might be provided for technology adoption to boost operational efficiency and market reach. These efforts aim to foster a thriving entrepreneurial ecosystem and support India\u0026#8217;s economic ambitions.\u003c/li\u003e\u003c/ul\u003e\u003ch3\u003e\u003cstrong\u003e    10. Focus on Sustainability\u003c/strong\u003e:\u003c/h3\u003e\u003cul\u003e\u003cli\u003e\u003cstrong\u003eThe Union Budget 2025-26 emphasizes sustainability by focusing on renewable energy investments, green technologies, and eco-friendly infrastructure. \u003c/strong\u003e\u003c/li\u003e\u003cli\u003eExpected measures include subsidies for clean energy projects, incentives for adopting sustainable farming practices, and policies promoting eco-friendly transportation like electric vehicles.\u003c/li\u003e\u003cli\u003eThere will likely be increased funding for research in green technologies and initiatives to lower the carbon footprint across industries. These steps aim to balance economic growth with environmental responsibility and ensure long-term sustainability.\u003c/li\u003e\u003c/ul\u003e\u003ch2\u003e\u003cstrong\u003eConclusion\u003c/strong\u003e\u003c/h2\u003e\u003cul\u003e\u003cli\u003eThus In 2025, India\u0026#8217;s Union Budget is anticipated to prioritize economic growth while striking a balance between fiscal discipline and sustainability. Key expectations include income tax reforms, higher capital expenditure, and support for emerging technologies.\u003c/li\u003e\u003cli\u003eThe agriculture sector is set to receive increased investments and subsidies. There is also a significant emphasis on innovation, upskilling, and promoting green energy initiatives.\u003c/li\u003e\u003cli\u003eThis comprehensive approach aims to stimulate consumption, enhance GDP growth, and foster a more inclusive economy, driving progress towards India\u0026#8217;s ambitious growth targets\u003c/li\u003e\u003c/ul\u003e\u003c/div\u003e\u003c/div\u003e\u003c/div\u003e\u003c/div\u003e\u003c/div\u003e\u003c/section\u003e\u003c/div\u003e","protected":false},"excerpt":{"rendered":"\u003cp\u003eWith the highly anticipated Union Budget 2025 around the corner, expectations are mounting for significant policy announcements that will steer India’s economic future. Important topics including GDP growth in 2025, tax reforms in 2025, and economic revival are anticipated to be covered by Finance Minister Nirmala Sitharaman. The budget is also anticipated to prioritize sustainable … \u003ca title=\u0022Union Budget 2025 -Key Expectations,Infrastructure, Tax Breaks, and More\u0022 class=\u0022read-more\u0022 href=\u0022https://www.5paisa.com/marathi/finschool/union-budget-2025-key-expectations/\u0022 aria-label=\u0022Read more about Union Budget 2025 -Key Expectations,Infrastructure, Tax Breaks, and More\u0022\u003eRead more\u003c/a\u003e\u003c/p\u003e","protected":false},"author":1,"featured_media":66948,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[17],"tags":[],"class_list":["post-66930","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-whats-brewing"],"acf":[],"_links":{"self":[{"href":"https://www.5paisa.com/finschool/wp-json/wp/v2/posts/66930","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https://www.5paisa.com/finschool/wp-json/wp/v2/posts"}],"about":[{"href":"https://www.5paisa.com/finschool/wp-json/wp/v2/types/post"}],"author":[{"embeddable":true,"href":"https://www.5paisa.com/finschool/wp-json/wp/v2/users/1"}],"replies":[{"embeddable":true,"href":"https://www.5paisa.com/finschool/wp-json/wp/v2/comments?post=66930"}],"version-history":[{"count":7,"href":"https://www.5paisa.com/finschool/wp-json/wp/v2/posts/66930/revisions"}],"predecessor-version":[{"id":66949,"href":"https://www.5paisa.com/finschool/wp-json/wp/v2/posts/66930/revisions/66949"}],"wp:featuredmedia":[{"embeddable":true,"href":"https://www.5paisa.com/finschool/wp-json/wp/v2/media/66948"}],"wp:attachment":[{"href":"https://www.5paisa.com/finschool/wp-json/wp/v2/media?parent=66930"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https://www.5paisa.com/finschool/wp-json/wp/v2/categories?post=66930"},{"taxonomy":"post_tag","embeddable":true,"href":"https://www.5paisa.com/finschool/wp-json/wp/v2/tags?post=66930"}],"curies":[{"name":"wp","href":"https://api.w.org/{rel}","templated":true}]}}