For the best experience, open
https://m.greaterkashmir.com
on your mobile browser.

Focus on Growth: Union Budget 2025-26 sets Rs 50.65 lakh crore vision for India’s development

The 2024-25 expenditure (Revised Estimates) is Rs 47.16 lakh crore
12:53 AM Feb 02, 2025 IST | GK NEWS SERVICE
focus on growth  union budget 2025 26 sets rs 50 65 lakh crore vision for india’s development
Focus on Growth: Union Budget 2025-26 sets Rs 50.65 lakh crore vision for India’s development___File photo
Advertisement

Srinagar, Feb 1: Finance Minister Nirmala Sitharaman on Saturday presented Union Budget 2025-26, envisaging an expenditure of Rs 50,65,345 crore, an increase of 7.4 per cent over the current fiscal.

The 2024-25 expenditure (Revised Estimates) is Rs 47.16 lakh crore.

According to Budget documents, Rs 5,41,850 crore has been earmarked for Centrally Sponsored Schemes for financial year starting April 1, 2025. This compares with Rs 4,15,356  crore for the current financial year.

Advertisement

For central sector schemes, Rs 16.29 lakh crore have been earmarked for FY26 as compared to Rs 15.13 lakh crore for 2024-25.

Advertisement

Budget estimates of expenditure for 2025-26 has increased due to several reasons, including rise in payment of interest on market loans, treasury bills, external loans, small savings and provident funds; higher requirements of Armed Forces including capital expenditure; and more provisions for employment generation scheme.

Advertisement

Total capital expenditure proposed for the next fiscal is Rs 11.22 lakh crore and effective capital expenditure of Rs 15.48 lakh crore.

Advertisement

Total resources being transferred to states, including devolution of states' share, grants/loans and releases under Centrally Sponsored Schemes, in Budget 2025-26 are Rs 25,01,284 crore, a rise of Rs 4,91,668 crore over actuals of 2023-24.

Advertisement

If resources of public enterprises are included, the total expenditure in Budget rises to Rs 54.97 lakh crore.

The budget estimates highlight total receipts, excluding borrowings, at Rs 34.96 lakh crore, while total expenditure is projected to reach Rs 50.65 lakh crore. The estimated net tax receipts stand at Rs 28.37 lakh crore and a fiscal deficit is anticipated at 4.4% of GDP. Additionally, gross market borrowings are slated to be Rs 14.82 lakh crore, with a capital expenditure of Rs 11.21 lakh crore, equating to 3.1% of GDP for the fiscal year.

The budget identified agriculture as a primary engine for development with several initiatives. The Prime Minister Dhan-Dhaanya Krishi Yojana aims to establish a Developing Agri Districts Programme that will be implemented in collaboration with state governments, targeting 100 districts characterized by low productivity and underdeveloped credit conditions, benefiting approximately 1.7 crore farmers. Further, efforts toward 'Aatmanirbharta' (self-reliance) in pulses include a 6-year mission focusing on key varieties such as tur, urad, and masoor, with procurement through NAFED and NCCF.

The budget also announces the establishment of a Makhana Board in Bihar and a National Mission on High Yielding Seeds intended to enhance the agricultural research ecosystem.

Recognising the critical role of MSMEs, the budget proposes changes in classification criteria, increasing investment and turnover limits significantly. Additionally, customized credit cards will be made available for micro enterprises, with plans to issue 10 lakh cards in the first year. A new Fund of Funds with a contribution of Rs 10,000 crore will be introduced to support startups and first-time entrepreneurs, particularly among women and marginalized communities.

Education initiatives will see the establishment of 50,000 Atal Tinkering Labs in government schools over the next five years. Connectivity improvements are planned for government secondary schools and health centres under the Bharatnet project.

To bolster infrastructure development, the budget includes an outlay of ₹1.5 lakh crore in interest-free loans to states for capital expenditure, with additional support for projects aimed at enhancing urban growth and sanitation. The Urban Challenge Fund will allocate ₹1 lakh crore to facilitate creative city redevelopment.

Sitharaman highlighted the importance of tourism for employment-led growth, announcing that 50 tourist sites will be developed in collaboration with state governments.

In a move towards modernizing the financial sector, the budget proposes raising the Foreign Direct Investment (FDI) limit in the insurance sector from 74% to 100% for specific companies. Additionally, a new Export Promotion Mission, directed jointly by multiple ministries, aims to enhance India's international trade capabilities.

As the country gears up for a transformative year, the Union Budget 2025-26 sets a clear vision for economic recovery and prosperity, emphasizing the need for sustainable growth across various sectors. The initiatives underscore the government's commitment to inclusive development and a robust economic framework.