Chinmay Finlease knows that the beginning of each year drives everyone’s attention to the budget of the year. The introduction of a budget creates concern and expectations for taxpayers, salaried employees, business persons, industrialists and each person in India.
While Hon’ble Finance Minister Nirmala Sitharaman has recently introduced the budget in Lok Sabha for the year 2025-26. The budget is an effort by the government to accelerate the growth of the nation, securing inclusive development, strengthening private sector investments and enhancing the expenditure power of the middle-class people of India.
The key expectations from the budget for this year were focused on simplified taxes, economic development and other key sectors. This brief guide shows you the major changes and the comparison of Union Budget 2024 and union budget 2025.
What is the Union Budget?
The Union budget is an official financial statement by the Government of India, presented every year by the financial minister.
When the Union Budget 2025 was introduced?
1 February, 2025, Saturday
What Is Included in a Budget?
Estimating Revenue: This section includes direct and indirect taxes on various goods and services and non-tax revenue.
Capital Budget: It includes infrastructure investments and long-term development projects.
Planning Expenditure: This includes expenses that will be made by the government on various sectors like defence, education, healthcare, infrastructure, and social welfare.
Receipts: These consist of tax revenue, non-tax revenue, and borrowings.
Key Purposes of Budget
Economic Growth and Stability
Resource Allocation
Social Welfare
Investment & Deficing Management
Revenue Generation
What to Expect for Salaried Professionals
No tax for citizens with annual income up to ₹12.75 lakh under the new tax regime
Comparison of Union Budget 2024-25 and 2025-26
Economic Development
Union Budget 2024-25
Focused on self-reliance (Atmanirbhar Bharat) & MSMEs, employment, skilling, and middle class
Union Budget 2025-26
Emphasising the Vision for "Viksit Bharat" with increased private sector investment
Agriculture & Rural Development
Union Budget 2024-25
- ₹1,22,528.77 Crore allocated
- PM Kisan Yojana continued
Union Budget 2025-26
- ₹ 1.37 lakh crore allocated
- Expanded Kisan Credit Card (₹5 lakh credit to 7.7 crore farmers)
- Improve research, develop seeds that resist pests and climate challenges
- Increase the availability of over 100 new seed varieties
- PM Dhan Dhaanya Krishi Yojana
MSMEs & Startups
Union Budget 2024-25
- ₹50,000 crore allocated for MSMEs
- MUDRA limit doubled ₹20 lakhs from ₹10 lakhs.
Union Budget 2025-26
- Increased credit guarantee cover of ₹ 20 Crore
- Customized credit card limit ₹5 lakh for microenterprises
- ₹2 crore loans for first-time entrepreneurs
Education & Healthcare
Union Budget 2024-25
- Expansion of medical colleges & skill development
- 1.48 lakh crore to education, employment and skill development
Union Budget 2025-26
- 50,000 Atal Tinkering Labs, 10,000 more medical seats
- AI Centres of Excellence
- ₹ 500 crore to setting up a Centre of Excellence in AI for education
Infrastructure & Urban Development
Union Budget 2024-25
- ₹10 lakh crore capital outlay
- PM Gati Shakti Plan
Union Budget 2025-26
- ₹1 lakh crore Urban Challenge Fund
- New Greenfield Airports
- ₹530 crore UDAN expansion
Tax Reforms & Benefits
Union Budget 2024-25
- Simplified tax slabs
- focus on digital tax filing
Union Budget 2025-26
- Higher deductions for senior citizens
- Higher TDS limit on rent
- Revised Tax Slabs with progressive rates
- No tax for citizens with annual income upto ₹ 12 lakhs
Banking & Financial Sector
Union Budget 2024-25
- FDI in insurance is capped at 74%
- INR 3,500 crores for the incentive scheme, with INR 3,000 crores for BHIM-UPI and INR 500 crores for RuPay debit cards
Union Budget 2025-26
- FDI in insurance increased to 100%
- Grameen Credit Score System
Defence & National Security
Union Budget 2024-25
- ₹6.21 lakh crore allocation including pension
Union Budget 2025-26
- rises by 9.53% to ₹6.81 lakh crore, focusing on pensions, salaries, and modernisation
- Nuclear Energy Mission
Gig Economy & Worker Welfare
Union Budget 2024-25
- Limited formal provisions
Union Budget 2025-26
- a comprehensive framework to extend formal recognition and social security benefits
- Improving social security for gig workers and healthcare access
Investments & Employment
Union Budget 2024-25
- ₹15,000 crore for Affordable and Mid-income Housing (SWAMIH)
- Rs 6,323 crore and RE of Rs 6,350 crore
Union Budget 2025-26
- ₹20,000 crore for R&D
- Expanded tourism sector
- SWAMIH Fund-2 for housing, R&D budget remains unchanged
Revenue & Expenditure
Union Budget 2024-25
- Estimated to be Rs 32,07,200 crore
- Estimated at ₹16.13 Lakh crore, or about 4.9 per cent of GDP
Union Budget 2025-26
- Estimated to be Rs 34,96,409 crore, an increase of 11.1% over the revised estimates for 2024-25.
- Fiscal deficit estimated at 4.4% of GDP
Conclusion
The Union Budget for fiscal year 2025-26 has been built upon the framework of fiscal year 2024-25 by bringing into focus higher investments, increased credit availability, improved taxation benefits, and enhanced support for innovation, infrastructure, and national security.
Source Link: Difference Between Union Budget
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