India Budget 2025-26 Explained in English : Income Tax Rates, Schemes & Sector Allocations

 Decoding Budget 2025-26

Big Highlights: No Tax up to ₹4 Lakhs • KCC Limit Increased to ₹5 Lakhs • Focus on Youth & Farmers.

Dive into the complete details of how every Rupee is earned and spent by the Government of India.

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India Budget 2025-26 Explained in Hindi : 4 Engines, Income Tax Changes & Sector Allocation

Central Budget : 2025-26

Presented by: FM Nirmala Sitharaman (1 Feb, 2025)

Finance Minister Nirmala Sitharaman presented the Central Budget 2025-26 on 1 February, 2025. In which four engines of development were outlined, which are as follows –

🚂 4 Engines of Development

  1. Agriculture
  2. Micro, Small and Medium Enterprises (MSME)
  3. Investment
  4. Export
Theme: “Sabka Vikas” (Development for All)

🇮🇳 Broad Principles of Viksit Bharat

  • Freedom from poverty.
  • 100 percent good level of school education.
  • Access to excellent, affordable and universally accessible health services.
  • Meaningful employment with 100 percent skilled workforce.
  • Seventy percent women in economic activities.
  • Farmers making our country the ‘Food Basket of the World’.
First Engine : Agriculture
  • Pradhan Mantri Dhan-Dhanya Krishi Yojana: Under this, 100 districts with low agricultural productivity have been included, from which 1.7 crore farmers will benefit.
  • Self-reliance in Pulses: Government will launch a six-year campaign for self-reliance in pulses with special focus on Tur, Urad and Masoor.
  • Increased limit of Kisan Credit Card: To make the credit limit convenient for 7.7 crore farmers, it has been increased from 3 lakh rupees to 5 lakh rupees.
  • National Mission on High Yielding Seeds: Strengthening research, ensuring availability of more than 100 high yielding and pest resistant seed varieties.

📊 Budget Estimates : 2025-26

(In ₹ Crore)

Particulars 2023-24
(Actual)
2024-25
(Budget Est.)
2024-25
(Revised)
2025-26
(Budget Est.)
Revenue Receipts 27,29,036 31,29,200 30,87,960 34,20,409
Capital Receipts 17,14,411 16,91,312 16,28,527 16,44,936
Total Receipts 44,43,447 48,20,512 47,16,487 50,65,345
Total Expenditure 44,43,447 48,20,512 47,16,487 50,65,345
Effective Capital Exp 12,53,111 15,01,889 13,18,320 15,48,282
Revenue Deficit 7,65,216 5,80,201 6,10,098 5,23,846
Effective Rev Deficit 4,61,300 1,89,423 3,10,207 96,654
Fiscal Deficit 16,54,643 16,13,312 15,69,527 15,68,936
Primary Deficit 5,90,771 4,50,372 4,31,587 2,92,598

Central Revenue & Expenditure

Rupee Comes In (Paise)
  • Borrowings & Liabilities 24 p
  • Income Tax 22 p
  • GST and other taxes 18 p
  • Corporation Tax 17 p
  • Non-tax receipts 9 p
  • Union Excise Duties 5 p
  • Customs 4 p
  • Non-debt capital receipts 1 p
Rupee Goes To (Paise)
  • States’ share of taxes 22 p
  • Interest Payments 20 p
  • Central Sector Schemes 16 p
  • Defense 8 p
  • Centrally Sponsored Schemes 8 p
  • Finance Comm. & transfers 8 p
  • Subsidies 6 p
  • Pension 4 p
  • Other Expenditure 8 p

How Central Government Money will be Spent?

Total: ₹ 50,65,345 Crore
Interest 12,76,338
Transport 5,48,649
Defense 4,91,732
Major Subsidies 3,83,407
Pension 2,76,618
Rural Development 2,66,817
Home (Inc. UTs) 2,33,211
Tax Administration 1,86,632
Agriculture & Allied 1,71,437
Education 1,28,650
Health 98,311
Urban Development 96,777
IT & Telecom 95,298
Energy 81,174
Commerce & Industry 65,553
Finance 62,924
Social Welfare 60,052
Scientific Depts 55,679
Foreign Affairs 20,517
Development of NE 5,915
Other 4,82,653

Revised Tax Structure in New Tax Regime

Income Slabs Tax Rate
0 – 4 Lakh Rupees Nil
4 – 8 Lakh Rupees 5 Percent
8 – 12 Lakh Rupees 10 Percent
12 – 16 Lakh Rupees 15 Percent
16 – 20 Lakh Rupees 20 Percent
20 – 24 Lakh Rupees 25 Percent
More than 24 Lakh Rupees 30 Percent

 

Central Govt Expenditure: Percentage Share

Total Budget: ₹ 50,65,345 Crore

Sector Amount (₹ Cr) Share (%)
Interest Payments 12,76,338 25.20%
Transport 5,48,649 10.83%
Defense 4,91,732 9.71%
Other 4,82,653 9.53%
Major Subsidies 3,83,407 7.57%
Pension 2,76,618 5.46%
Rural Development 2,66,817 5.27%
Home (Inc. UTs) 2,33,211 4.60%
Tax Administration 1,86,632 3.68%
Agriculture & Allied 1,71,437 3.38%
Education 1,28,650 2.54%
Health 98,311 1.94%
Urban Development 96,777 1.91%
IT & Telecom 95,298 1.88%
Energy 81,174 1.60%
Commerce & Industry 65,553 1.29%
Finance 62,924 1.24%
Social Welfare 60,052 1.19%
Scientific Depts 55,679 1.10%
Foreign Affairs 20,517 0.41%
Development of NE 5,915 0.12%
Note: Percentages are rounded to two decimal places.

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