Synopsis
The Union Budget 2025-26 highlights India's focus on innovation and knowledge with significant reforms in agriculture, MSMEs, and more, according to SBI Chairman C.S. Setty. The budget aims to enhance economic growth through various initiatives, benefiting both individuals and sectors.Key Takeaways
- India's Union Budget emphasizes an innovation-driven economy.
- Reforms targeted at agriculture aim to boost farmers' income.
- MSME sector to benefit from expanded credit access.
- Increased TCS and TDS limits will simplify business operations.
- No cuts in capital expenditure, maintaining fiscal discipline.
New Delhi, Feb 1 (NationPress) The Union Budget 2025-26 underscores India’s status as a knowledge-driven and innovation-centric economy, introducing a variety of reforms in sectors like agriculture, MSMEs, export focus, education, and healthcare, while also integrating skills and AI, stated SBI Chairman C.S. Setty on Saturday.
The restructuring of personal tax laws could trigger a potential consumption surge, estimated at around Rs 3.3 lakh crore over the baseline.
Setty remarked, “The fiscal metrics are cautiously optimistic. The budget features several ambitious plans for the agricultural sector aimed at enhancing farmers’ earnings through crop diversification, engagement in agricultural value chains, and a focus on allied activities.”
The MSME sector is set to gain from increased credit access through credit guarantees, promoting women entrepreneurs and introducing credit cards for micro-businesses.
He further noted, “The raised TCS limit on remittances and increased TDS thresholds for senior citizens will greatly enhance the ease of doing business. This budget marks a pivotal move towards establishing India as a global center for innovation and advanced manufacturing.”
Finance Minister Nirmala Sitharaman affirmed that there would be no reductions in capital spending. “We have maintained fiscal discipline in line with the trajectory set in 2020,” she stated.
She added, “We continue to recognize the multiplier effect of government capital expenditure, which has been a sustaining factor for us.”
In addition, Central Board of Direct Taxes (CBDT) Chairman Ravi Agrawal reported that approximately 8.75 crore returns have been submitted for the assessment year 2024-25, with all taxpayers poised to benefit from the recent relief initiatives.
Taxpayers earning Rs 24 lakh will receive a benefit of Rs 1.1 lakh, while a million taxpayers will experience the most significant advantage, as they will no longer be subject to any taxation.
The option to transition to the new tax system is available for taxpayers without a deadline imposed.
Furthermore, TDS rates and thresholds have been streamlined, responding to a long-standing appeal from taxpayers for simplification, Agrawal stated.
