### **Union Budget 2025-26: Benefits and Challenges**
The Union Budget 2025-26, presented by Finance Minister Nirmala Sitharaman, focuses on economic growth, tax relief, and infrastructure development. This budget aims to boost the middle class, support businesses, and enhance foreign investment. However, it also brings challenges like fiscal deficit concerns and inflation risks. Let’s explore the key highlights, benefits, and challenges of this budget.
---
## **Key Highlights of Budget 2025-26**
- **Income Tax Relief**: The tax exemption limit increased to ₹12 lakh; the highest 30% tax rate applies to incomes above ₹24 lakh.
- **Economic Growth**: Nominal GDP projected to grow at **10.1%**.
- **Fiscal Deficit**: Estimated at **4.4% of GDP**, reflecting high government borrowing.
- **Agriculture Support**: New schemes to boost **pulses and cotton production**, along with increased farm loan subsidies.
- **Infrastructure Boost**: Investment in **regional air connectivity and critical minerals** development.
- **Foreign Investment**: **100% FDI allowed in the insurance sector** to attract global investors.
- **Energy Initiatives**: **100 GW Nuclear Energy Mission** to promote clean energy.
---
## **Benefits of Budget 2025-26**
1. **Tax Relief for the Middle Class**
- Higher exemption limits increase disposable income, boosting consumer spending.
2. **Stronger Economic Growth**
- Government spending and investment incentives will drive business expansion.
3. **Support for Farmers**
- Missions for pulses and cotton will **reduce import dependence** and improve farmer earnings.
4. **Boost to Infrastructure and Jobs**
- More funds for **roads, railways, and regional connectivity** will generate employment.
5. **Encouragement for Startups and Manufacturing**
- The **National Manufacturing Mission** promotes local production and innovation.
6. **Increased Foreign Direct Investment (FDI)**
- The **insurance sector’s FDI limit is raised to 100%**, bringing more global players.
7. **Sustainable Energy Growth**
- The **100 GW nuclear energy plan** supports India’s clean energy goals.
---
## **Challenges of Budget 2025-26**
1. **Fiscal Deficit Concerns**
- At **4.4% of GDP**, high government borrowing could **lead to inflation** and higher interest rates.
2. **Limited Direct Support for the Poor**
- While the middle class benefits from tax cuts, there are fewer welfare schemes for low-income groups.
3. **Inflation Risks**
- Increased government spending could **drive up prices** of essential goods.
4. **Agriculture Challenges**
- Farmers are concerned about the **lack of clear MSP (Minimum Support Price) policies**.
5. **Execution Delays**
- Government programs like the **National Manufacturing Mission** may face bureaucratic delays.
---
## **Conclusion**
The **Union Budget 2025-26** takes a balanced approach by offering **tax relief, investment opportunities, and economic growth initiatives**. However, challenges like the **fiscal deficit, inflation, and execution issues** remain. If implemented effectively, this budget can strengthen India’s position as a **fast-growing economy** while ensuring **sustainable development**.
**What do you think about this budget? Let us know in the comments!**
Comments
Post a Comment