Union Budget 2025 Update: On February 1, Finance Minister Nirmala Sitharaman introduced this year’s budget in Parliament. Her address highlighted several key measures, raising curiosity about what kind of support women, farmers, and workers have received.
For the farming community, the government announced a higher credit limit under the Kisan Credit facility, giving cultivators easier access to financial help. At the same time, steps were outlined for people working in small occupations and daily wage earners in towns and cities, with a focus on improving their income stability.
Women, too, were given priority through new policies aimed at increasing their opportunities and financial strength. Overall, the 2025 budget directed special attention toward these three groups, with the goal of easing their difficulties and opening new avenues for growth.
Union Budget 2025 Update
Finance Minister Nirmala Sitharaman unveiled the first full budget of Modi 3.0, marking her eight consecutive budget presentation in Parliament. The highlight for the middle class was a major tax relief—no income tax up to ₹12 lakh, while the 30% tax slab will now apply only after ₹24 lakh annual income.
During her speech, Sitharaman announced that the government will set aside ₹100 crore to boost startups. In addition, for the very first time, financial assistance will be extended to five lakh women, while entrepreneurs from SC and ST communities will be eligible for loans of up to ₹2 crore.
Women will be able to access these loans on simple terms without the need for collateral, helping them launch and grow their small or medium-scale businesses. The initiative also promises digital training, marketing support, and easier access to government schemes, ensuring women entrepreneurs get the right tools to expand their ventures.
In the latest budget, the borrowing capacity available the Kisan Credit Card has been expanded from ₹3 lakh to ₹5lakh, giving farmers greater access to funds. Alongside this, Bihar will see the establishment of a Makhana Board as well as a new institute focused on food technology, entrepreneurship, and management.
For gig and platform-based workers, the government has planned a new system of identity cards, which will help them register easily on the E-Shram portal. Nearly one crore laborers are also expected to gain access to health coverage under the Ayushman Bharat scheme.
A separate program for city-based workers is also on the way, aimed at boosting the earnings of underprivileged urban households. The initiative seeks to create more livelihood options and improve overall living conditions for these groups.
Key Highlights from Union Budget 2025
In this year’s budget, a revised tax structure under the new regime has been introduced. As per the changes, income between ₹16-20 lakh will be taxed at 20%, earnings from ₹20-24 lakh will attract 25%, and income above ₹24 lakh will fall under the 30% bracket.
The timeline for filling updated income tax returns has also been extended. Instead of the earlier 2 years, taxpayers will now have up to 4 years to make corrections or updates to their returns, giving them more flexibility and time.
On the development front, the Jal Jeevan Mission has been given an extension till 2028, with the aim of ensuring tap water supply for every household, along with improvements in sanitation and sewerage management.
In 2025, the government plans to finish construction of one lakh pending houses, while also handing over 40,000 newly built homes within the year. A strong push has also been given to agriculture, with fresh schemes aimed at boosting crop output and improving irrigation facilities.
A new program called the Dhan Dhanya Yojana has been rolled out for farmers, while the borrowing limit under the Kisan Credit Card has been raised to ₹5 lakh. These steps are expected to benefit nearly one crore cultivators across the country.
The budget also focuses on enhancing the production of pulses such as tur, urad, and lentils, along with initiatives to promote fisheries. Additionally, a special cotton mission has been introduced, and support for makhana growers has been promised through the creation of a dedicated Makhana Board in Bihar.
The Union Budget 2025 has introduced several fresh measures for women, senior citizens, and key industries. For the first time, women entrepreneurs from SC and ST backgrounds will be able to access term loans of up to ₹2 crore, while export-focused MSMEs will now have the opportunity to secure financing of up to ₹20 crore.
Older citizens have also been given relief, as the maximum interest income exempted from TDS has been raised from ₹50,000 to ₹1 lakh, providing them with added financial comfort.
On the industry side, the government has announced a national setup to strengthen the toy manufacturing sector. At the same time, foreign investment rules in insurance have been further relaxed, allowing companied to attract up to 100% overseas funding, compared to the earlier 75% limit.
The government has shared that a fresh Income Tax Bill is set to be introduced in Parliament next week, signaling upcoming changes in the tax system. Support for startups has also been expanded, with funding access being raised from ₹10 crore to ₹20 crore, while the cost of availing guarantees will be reduced to ease pressure on new businesses.
On the healthcare side, the budget outlines the creation of 10,00 additional seats for medical studies and studies and the establishment of cancer care units within district-level hospitals, making advanced treatment more accessible to citizens.
What are the key announcements for farmers?
Finance Minister Nirmala Sitharaman presented the first full budget of the India 3.0 government, where several major decisions were announced for sectors ranging from MSMEs to women’s empowerment. During her speech, she also referred to Bihar, confirming the creation of a Makhana Board in the state.
Among the agricultural measures, a new initiative called the PM Dhan Dhanya Yojana has been introduced. This program will be rolled out in partnership with state governments, with 100 districts included in the first phase. Around 1.7 crore farmers are expected to directly benefit from it.
The primary goal of this scheme is to bring growth and stability to rural India by improving the financial well-being of farmers and encouraging greater investment in agriculture.
What got cheaper, and what became costlier?
In the latest budget, several everyday items are set to become more affordable. LCD and LED TVs will now cost less, and mobile phones are also expected to see a price drop. Along with these, lithium-ion batteries will be cheaper, making electronic devices and gadgets more accessible.
The electric vehicle segment has received a boost as well, with both two-wheelers and four-wheelers expected to see reduced prices. On the healthcare side, some cancer medicines along with 36 other life-saving drugs will now be available at lower costs, giving relief to patients.
Additionally, the import duty on leather products has been reduced, which means leather items will now be cheaper. Cloths manufactured within India will also see a price cut, providing further benefit to consumers.
Union Budget 2025 – New Income Tax Exemptions
The latest budget has introduced major relief in the income tax slabs. The comparison below shows how much taxpayers will save under the new system:
| Annual Income | Tax Earlier (₹) | Tax Now (₹) | Savings (₹) |
| 10 Lakh | 50,000 | 0 | 50,000 |
| 12 Lakh | 71,500 | 0 | 71,500 |
| 13 Lakh | 88,400 | 66,300 | 22,100 |
| 15 Lakh | 1,30,000 | 97,500 | 32,500 |
| 17 Lakh | 1,84,600 | 1,30,000 | 54,600 |
| 22 Lakh | 3,40,000 | 2,40,000 | 1,00,100 |
| 25 Lakh | 4,34,200 | 3,19,800 | 1,14,400 |
Conclusion
The new income tax changes in Union Budget 2025 bring significant relief to the middle class, ensuring higher savings across different income levels. These measures aim to reduce financial stress and increase disposable income for taxpayers.
For more detailed updates and the latest budget highlights, visit newskaghar24.com.
Good to hear that tax is getting reduced by that woman…