Union Budget 2025: What’s Changed from Last Year?

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.

Comparison of Union Budget 2024-25 and 2025-26

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

Category	Union Budget 2024-25	Union Budget 2025-26
Economic Development	Focused on self-reliance (Atmanirbhar Bharat) & MSMEs, employment, skilling, and middle class	Emphasising the Vision for "Viksit Bharat" with increased private sector investment
Agriculture & Rural Development	₹1,22,528.77 Crore allocated PM Kisan Yojana continued	₹ 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	₹50,000 crore allocated for MSMEs MUDRA limit doubled ₹20 lakhs from ₹10 lakhs.	Increased credit guarantee cover of ₹ 20 Crore Customized credit card limit ₹5 lakh for microenterprises ₹2 crore loans for first-time entrepreneurs
Education & Healthcare	Expansion of medical colleges & skill development 1.48 lakh crore to education, employment and skill development	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	₹10 lakh crore capital outlay PM Gati Shakti Plan	₹1 lakh crore Urban Challenge Fund New Greenfield Airports ₹530 crore UDAN expansion
Tax Reforms & Benefits	Simplified tax slabs focus on digital tax filing	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	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	FDI in insurance increased to 100% Grameen Credit Score System
Defence & National Security	₹6.21 lakh crore allocation including pension	rises by 9.53% to ₹6.81 lakh crore, focusing on pensions, salaries, and modernisation Nuclear Energy Mission
Gig Economy & Worker Welfare	Limited formal provisions	a comprehensive framework to extend formal recognition and social security benefits Improving social security for gig workers and healthcare access
Investments & Employment	₹15,000 crore for Affordable and Mid-income Housing (SWAMIH)  Rs 6,323 crore and RE of Rs 6,350 crore	₹20,000 crore for R&D Expanded tourism sector SWAMIH Fund-2 for housing, R&D budget remains unchanged
Revenue & Expenditure	Estimated to be Rs 32,07,200 crore Estimated at ₹16.13 Lakh crore, or about 4.9 per cent of GDP	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.