The central government is going to present the budget for the financial year 2025-26 soon. Many important announcements are expected in this budget which will have a direct impact on the lives of the common man. Experts believe that this time the budget will focus on farmers, middle class and youth. The government will try to give impetus to the economy and create new employment opportunities.
In this budget, steps like reduction in prices of petrol and diesel, increase in Kisan Samman Nidhi, new schemes for jobs, tax relief to the middle class and big investment on infrastructure can be taken. Let us know which 5 big announcements are expected in Budget 2025.
5 possible big announcements of Budget 2025
1. Reduction in prices of petrol and diesel
The government can cut excise duty on petrol and diesel. This will bring down their prices and curb inflation. Currently about 21% of the retail price of petrol and 18% of the price of diesel is charged as central excise duty.
Experts believe that the government can reduce this duty by 5-7%. Due to this, petrol can become cheaper by Rs 8-10 and diesel by Rs 6-8 per liter. This step will provide great relief to the common man and will help in controlling the inflation rate.
2. Increase in PM Kisan Samman Nidhi
The annual amount received by farmers under the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme can be increased. At present farmers are given Rs 6,000 annually under this scheme.
According to sources, the government can increase this amount to Rs 8,000 or Rs 10,000 annually. This step will help in increasing the income of farmers and strengthening the agriculture sector. This will also give impetus to the rural economy.
3. New schemes for employment generation
The government can announce many new schemes to provide employment to the youth. These may include:
- Big investment in skill development programs
- Announcement of new fund to encourage startups
- Special package for MSME sector
- Schemes to promote apprenticeship and internship
The government’s aim may be to provide employment opportunities to more than 4 crore youth in the next 5 years.
4. Tax relief for the middle class
Income tax slabs can be changed to provide relief to the middle class. The exemption limit may be increased in the new tax regime. Apart from this, some more concessions can also be given:
- Increasing standard deduction from Rs 50,000 to Rs 1 lakh
- Increasing investment limit under 80C from Rs 1.5 lakh to Rs 2 lakh
- Increasing rebate on home loan
With these steps, more money will come into the hands of the middle class, which will increase consumption and give impetus to the economy.
5. Big investment on infrastructure
The government can make huge investments on infrastructure development. This may include:
- Expansion of road and rail network
- Construction of new airports and ports
- Focus on smart city projects
- Development of rural infrastructure
- Investing in digital infrastructure
The government can increase spending on infrastructure to 3.5% of GDP. This will create new employment opportunities and give impetus to development.
Overview of Budget 2025
| Description | possible announcement |
| Excise duty on petrol and diesel | Reduction by 5-7% |
| PM-KISAN amount | Rs 8,000-10,000 annually |
| employment generation target | 4 crore jobs in 5 years |
| income tax exemption limit | Increase from Rs 3 lakh to Rs 5 lakh |
| spending on infrastructure | 3.5% of GDP |
| skill development budget | Rs 1.5 lakh crore |
| Package for MSME sector | Rs 2 lakh crore |
| Startup Fund | Rs 10,000 crore |
What will be special in the budget for farmers?
The government can take several steps to meet the target of doubling farmers’ income:
- Increase in PM-KISAN amount
- Reduction in interest rates on agricultural loans
- Extension of crop insurance scheme
- Big investment on irrigation facilities
- Subsidy on agricultural equipment
- Kisan Credit Card limit increase
These steps will increase the income of farmers and strengthen the agriculture sector.
What will the middle class get in the budget?
Government may make changes in income tax slab to provide relief to middle class:
- Increasing the exemption limit from Rs 3 lakh to Rs 5 lakh in the new tax regime.
- Reducing tax rate on income of Rs 5-10 lakh from 10% to 5%
- Reducing the tax rate on income of Rs 10-15 lakh from 20% to 15%.
Apart from this, the discount available on home loan can be increased. Standard deduction and 80C limit may also be increased.
Focus on youth and employment
The government can take several steps to provide employment opportunities to the youth:
- Expansion of skill development programs
- Promotion of apprenticeship and internship
- Strengthening the Startup Ecosystem
- Special package for MSME sector
- Creating employment opportunities in new sectors
The government’s aim may be to provide employment opportunities to more than 4 crore youth in the next 5 years.
Emphasis on infrastructure development
Government can make big investment on infrastructure development:
- Expansion of road and rail network
- Construction of new airports and ports
- Focus on smart city projects
- Development of rural infrastructure
- Investing in digital infrastructure
This will create new employment opportunities and give impetus to development.
Measures to control inflation
The government can take these steps to control inflation:
- Reduction in excise duty on petrol and diesel
- Reduction in GST rates on food items
- increasing supply of essential commodities
- Changes in monetary policy to control inflation
With these measures the inflation rate can be brought closer to the target of 4%.
spending on health and education
Expenditure on health and education sector can be increased:
- Increasing health budget to 2.5% of GDP
- Opening of new medical colleges and hospitals
- Expansion of Ayushman Bharat Scheme
- Increasing education budget to 6% of GDP
- Opening of new schools and colleges
- Focus on digital education
Investment in these areas will promote human resource development.
Disclaimer
This article is for informational purposes only. The information given in it is based on various media reports, experts’ estimates and public discussions. Actual budget announcements may differ from this. Please refer to official government sources and documents for accurate and updated information about government policies and budget provisions. This article in no way represents an official representation of government policies or budget announcements.
