Key Highlights of the Union Budget: Major Tax Reforms, Infrastructure Investments, and Welfare Initiatives

New Delhi – The Union Budget brings significant tax reliefs, infrastructure investments, and social welfare initiatives, with a strong emphasis on education, agriculture, healthcare, and urban development.

Major Tax Reforms: Relief for Students and Individuals

  • TDS Exemption on Education Loans: The central government has waived Tax Deducted at Source (TDS) on loans for students studying abroad, ensuring they receive the full loan amount. Previously, remittances exceeding ₹7 lakh were subject to 0.5% TDS.
  • TCS Revisions on Foreign Remittances:
    • The Tax Collection at Source (TCS) limit on foreign remittances for travel and medical treatment has increased from ₹7 lakh to ₹10 lakh.
    • Foreign education loans from approved financial institutions are now completely exempted from TCS.
  • Income Tax Revisions:
    • The tax exemption limit under the new tax regime has been raised to ₹12 lakh, benefiting middle-class taxpayers.
    • This announcement was widely welcomed as a major financial relief for Indian households.

Agriculture and Rural Development: Boost to Farmers

  • ₹1,71,437 crore allocated for the agriculture sector, with a focus on increasing productivity and ensuring fair prices for farmers.
  • Pradhan Mantri Dhan Dhanya Krishi Yojana introduced to support districts with low agricultural productivity. The initiative aims to benefit 17 crore farmers through collaboration with state governments.
  • New allocations for crop-specific development:
    • ₹1,000 crore for the Mission for Pulses.
    • ₹500 crore each for the Mission for Vegetables and Fruits, cotton cultivation, Makhana Board, and Hybrid Seed Programme.
  • Short-term loans to 7.7 crore farmers, fishermen, and dairy farmers under the Kisan Credit Card scheme, with the loan limit increased from ₹1 lakh to ₹5 lakh.
  • ₹2,413 crore earmarked for agricultural development.

Education and Skill Development

  • ₹4,971 crore allocated for the Samagra Shiksha programme to enhance school education.
  • ₹2,721 crore allocated for PM Schools Rising India, a scheme aimed at improving school infrastructure.
  • 50,000 Atal Tinkering Labs to be established in government schools over the next five years.
  • Bharat Net initiative to provide broadband connectivity to all government secondary schools and rural primary health centres.
  • Bharatiya Bhasha Pustak Yojana to digitise and provide Indian language books for school and higher education.
  • AI Centre for Education to be set up with a ₹500 crore investment.
  • 10,000 additional medical seats to be created in colleges and hospitals.

Healthcare and Social Welfare

  • 36 life-saving medicines exempted from Basic Customs Duty (BCD) to provide relief for patients suffering from cancer, rare diseases, and chronic illnesses.
  • 200 Daycare Cancer centres to be established across district hospitals by 2025-26.
  • ₹2,324 crore allocated for the PM E-Drive scheme to promote electric vehicles.
  • Saksham Anganwadi & Poshan 2.0 Programme to provide nutritional support to one crore children, one crore pregnant/lactating mothers, and 20 lakh adolescent girls.

Infrastructure and Urban Development

  • ₹8,905 crore allocated for the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) project.
  • ₹649 crore earmarked as grants for metro rail projects.
  • ₹2,500 crore allocated for industrial housing and ₹10,000 crore for the Urban Challenge Fund.
  • No allocation for the Smart Cities Mission this year.
  • ₹5,935 crore allocated for the Polavaram project to address water scarcity in Andhra Pradesh.
  • ₹3,908 crore was allocated for river interlinking last year; however, this year, the allocation has been reduced to ₹2,330 crore.

Technology, Science, and Industry Development

  • ₹900 crore allocated for the science and technology sector.
  • ₹1,505 crore earmarked for new Indian Institutes of Technology (IITs), marking an ₹800 crore increase from last year.
  • ₹446 crore allocated for the Moss India Scheme to support earth sciences research.
  • India Post to be transformed into a large public logistics organisation.
  • A Focus Product Scheme for the footwear and leather sector aims to generate 22 lakh jobs and facilitate ₹4 lakh crore in turnover.

Tourism and Employment Initiatives

  • India’s top 50 tourist destinations to be developed in collaboration with state governments.
  • Employment-based growth in tourism to be supported through:
    • MUDRA loans for homestay businesses.
    • Incentives to states for better destination management.
    • Enhanced e-visa facilities.
  • Gig workers to receive healthcare coverage under the Pradhan Mantri Jan Arogya Yojana, benefiting one crore workers.
  • 40,000 additional housing units to be completed under the Swami Fund Phase 2.

Fisheries and Industrial Growth

  • A framework for sustainable fisheries development in India’s Exclusive Economic Zone (EEZ) and high seas, focusing on Andaman & Nicobar and Lakshadweep Islands.
  • A urea plant with an annual capacity of 12.7 lakh metric tonnes to be set up in Namrup, Assam.

Minority and Tribal Welfare

  • ₹1,000 crore allocated under the Pradhan Mantri Jan Vikas Karyakaram Yojana for minority welfare schemes.
  • ₹1,924 crore allocated for the PN Vanabandhu Kalyan Yojana, supporting the Scheduled Tribes.

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