The Union Budget is one of the most important annual events in India’s economic calendar. Presented by the Finance Minister in Parliament, it outlines the Government of India’s revenue and expenditure plans for the upcoming financial year. The Union Budget 2025-26 reflects the government’s priorities for economic growth, development, welfare, and reforms.

For aspirants preparing for Banking, SSC, Railway, UPSC, Defence, Insurance, and State PCS exams, understanding the key highlights of the Union Budget is crucial. Questions from this topic frequently appear in the General Awareness, Economy, and Current Affairs sections of both prelims and mains exams.

This article the union budget highlights provides a summary of the Union Budget 2025’s major announcements, schemes, allocations, and policy changes. It also includes a downloadable PDF (English and Hindi) to help you revise important points for your upcoming exams quickly and effectively.

Union Budget Highlights PDF Download

Candidates can download the Union Budget Highlights PDF from the link below. All in-depth details of the Union Budget 2025 are provided here. Candidates can also download the Union Budget 2023 and 2024 highlights PDF from the link below.

Union Budget 2025-26 Highlights PDF Download Link

Union Budget 2024 Highlights PDF Download Link

Union Budget 2023-24 Highlights PDF Download Link

The Union Budget 2025 highlights of India outline the ongoing initiatives focused on Ten key priorities to create abundant opportunities for everyone. They are:

1. Agriculture
   

2. MSMEs
   

3. Funds or Investment for Startups

4. Additional Seats in IITs and Medical Colleges

5. Uplift Household Sentiments

6. Enhance the Spending Power Of India’s Rising Middle Class

7. Greenfield Airports for Bihar
   

8. Promoting innovation in partnership with the private sector
   

9. Income tax reductions

10. Exports

These are the important things discussed in the Union budget 2025 by the finance minister of India Smt. Nirmala Sitaraman.

Union Budget Highlights: Key Points

The Live updates started at 11 AM on February, 1st, 2025.

• Honourable Finance Minister Smt. Nirmala Sitaraman starts the presentation.

• Finance Minister Nirmala Sitharaman stated that the development initiatives outlined in Budget 2025 encompass ten key areas, particularly emphasising the welfare of the underprivileged, youth, farmers, and women.

• Agriculture serves as the primary driving force behind the Union Budget 2025. The PM Dhandhanya Krisihi Yojna is set to encompass 100 districts with low productivity levels. This initiative aims to improve agricultural output and increase storage capabilities at the panchayat level. It is projected to benefit approximately 1.7 crore farmers and will be implemented in collaboration with the states. The program seeks to create abundant opportunities and will incorporate global best practices. "Our government will introduce a program focused on pulses, particularly urad, tuar, and masoor," stated FM Sitharaman.

• A unique opportunity has arisen in Bihar with the establishment of the Makhana board in the state. This board will offer training and assistance to Makhana farmers, as stated by FM Nirmala Sitharaman.

• India Post to be transformed into a large public logistics organisation announced Finance Minister Nirmala Sitharaman.

• On MSMEs: FM Nirmala Sitharaman announced that MSMEs are recognized as the second pillar of the Union Budget 2025. Presently, over one crore registered MSMEs are contributing 37 per cent to the manufacturing sector, collectively striving to establish India as a global manufacturing hub. These enterprises account for 45 per cent of the nation's exports. To support their growth, the investment and turnover thresholds for MSME classification will be increased to 2.5 times and double, respectively. This initiative aims to instil confidence in these businesses, enabling them to expand and create job opportunities for the youth.

• Nirmala Sitharaman added that the credit guarantee coverage for micro, small, and medium enterprises (MSMEs) will be substantially increased.

• Funds for Startups: A new 'Fund of Funds for Startups' is to be established to enhance entrepreneurship through a fresh allocation of Rs. 10,000 crore, supplementing the existing government contribution of Rs. 10,000 crore. This initiative will also introduce a new scheme to support 5 lakh first-time entrepreneurs from Women, Scheduled Castes, and Scheduled Tribes.

• Expansion of capacity in IITs: Regarding the increase in capacity at the Indian Institutes of Technology (IITs), Finance Minister Nirmala Sitharaman stated that over the past decade, 23 IITs have exceeded a total student capacity of 135,000. She also mentioned, "In 2023, I announced the establishment of three centres of excellence in artificial intelligence for agriculture. Additionally, a centre of excellence focused on education will be established with a budget allocation of 500 crores."

• Additional Seats in Medical Colleges: Finance Minister Nirmala Sitharaman announced that an additional ten thousand seats will be introduced in medical colleges next year, with a total of seventy-five thousand seats expected to be added over the next five years.

• New Classification Criteria for MSMEs: The investment threshold for the classification of Micro, Small, and Medium Enterprises (MSMEs) will be increased to 2.5 times its current value. Additionally, the turnover limits for MSME classification will be doubled.

• Modified ‘Udaan’ scheme: The Udaan regional connectivity initiative has facilitated 15 million middle-class individuals in achieving their desire for faster travel. Encouraged by this success, a revised Udaan scheme will be introduced to improve regional connectivity to an additional 120 destinations, stated Finance Minister Nirmala Sitharaman.

• Greenfield Airports for Bihar: Nirmala Sitharaman stated, “The revised ‘Udaan’ scheme is projected to accommodate an additional four crore passengers over the next decade. Furthermore, the initiative will enhance the development of helipads and smaller airports in hilly, aspirational, and northeastern districts.” She also mentioned that Greenfield airports will be established in Bihar to address the future requirements of the state.

• Promoting innovation in partnership with the private sector: Finance Minister Nirmala Sitharaman announced that a sum of 20,000 crores will be allocated to foster innovation in collaboration with the private sector.

• New income tax bill to come next week: Nirmala Sitharaman stated, "Next week, I plan to introduce the new income tax bill."

• Nirmala Sitharaman announced that the fiscal deficit is anticipated to reach 4.4 per cent of the GDP.

• Items added in the duty-free sector: Nirmala Sitharaman has declared that nine items will be included in the duty-free sector.

• Simple to understand: Regarding the proposals for direct taxation, Finance Minister Nirmala Sitharaman stated, "I am pleased to announce that in the new income tax framework, we will uphold the principle of 'nyay'. The forthcoming bill will be straightforward and unambiguous in its language, ensuring that it is easily comprehensible for taxpayers, which will consequently minimize litigation."

• Focus areas of tax proposals: Sitharaman's tax initiatives include:

1. Reforms in personal income tax aimed specifically at benefiting the middle class.

2. Additionally, there is a focus on the rationalization of Tax Deducted at Source (TDS) and Tax Collected at Source (TCS), 

3. Reducing the compliance burden.

4. Enhance the ease of doing business.

5. Promote both employment and investment.

• No income tax: Nirmala Sitharaman has announced that individuals earning up to ₹12 lakhs will not be subject to income tax.

• A revised framework aimed at significantly lowering taxes for the middle class will result in increased disposable income, thereby enhancing household consumption, savings, and investment opportunities.

• The adjustments to slabs and rates are being implemented universally to provide advantages to all taxpayers. They are:

1. 0 - 4 Lakhs - NIL

2. 4 - 8 Lakhs - 5%

3. 8 - 12 Lakhs - 10%

4. 12 - 16 Lakhs - 16%

5. 16 - 20 Lakhs - 20%

6. 20 - 24 Lakhs - 25%

7. Above 24 Lakhs - 30%

• On income tax: Nirmala Sitharaman stated that individuals residing in India with a total income of up to ₹7,00,000 are not required to pay any tax, due to the rebate offered under the new tax regime. She further proposed an increase in the rebate for resident individuals under this regime, ensuring that those with a total income of up to ₹12,00,000 will also be free from tax obligations. Additionally, she noted that marginal relief, as previously established under the new tax regime, will continue to apply for incomes that slightly exceed ₹12,00,000.

• Cheaper and Costlier: Thirty-six cancer and rare disease treatments have been relieved from Basic Customs Duty by the government. Moreover, a proposal has been made to exempt Basic Customs Duty on 37 additional medications. The Centre has also recommended a complete exemption for cobalt products, LED items, zinc, lithium-ion battery scrap, and 12 essential minerals from Basic Customs Duty.

• Honourable Finance Minister Smt. Nirmala Sitaraman Ends the presentation.

FAQs - Union Budget Highlights PDF

Q. Why is the Union Budget important for competitive exams?

The Union Budget outlines key government policies, schemes, and allocations, making it a hot topic in the General Awareness, Economy, and Current Affairs sections of Banking, SSC, UPSC, Railway, Defence, and State PCS exams.

Q. Does the PDF cover the major schemes and allocations from Budget 2025-26?

Yes! The PDF includes a clear summary of flagship schemes, sector-wise allocations, and key reforms announced in the Union Budget 2025-26.

Q. Will this PDF help for both prelims and mains exams?

Absolutely! The Budget’s key points are relevant for both prelims MCQs and mains descriptive answers, and even for interview discussions.

Q.  Is the Budget PDF available in both English and Hindi?

Yes, the Union Budget 2025 Highlights PDF is provided in English and Hindi so you can revise comfortably in your preferred language.

Q. How can I effectively memorize Budget highlights for exams?

Break the Budget into sections (e.g., Agriculture, Health, Education, Infrastructure) and revise using the PDF. Making short notes or flashcards can also help with retention.

Q. Are sector-specific highlights (like Agriculture, MSME, Defence) covered?

Yes! The summary lists sector-wise key points to help you focus on areas that are often asked in exams.

Q. Does the PDF cover new taxes or policy changes?

Definitely! Any major tax proposals, fiscal deficit targets, or policy shifts mentioned in the Budget are highlighted in the PDF.

Q.  Is the Budget PDF available in both English and Hindi?

Yes, the Union Budget 2025 Highlights PDF is provided in English and Hindi so you can revise comfortably in your preferred language.

Q. How soon should I study the Budget highlights before my exam?

Start your revision as soon as the Budget is released, and revisit the key points at least once a week before your exam to stay confident.

Q. Can Budget-related questions appear in interview rounds?

Yes! Especially in Banking, UPSC, and State PCS interviews, you may be asked about key Budget provisions, government priorities, or how certain schemes impact the economy. Knowing the Budget highlights helps you give confident, well-informed answers.