Employment, Skilling, MSME and Middle Class
The budget places the finance minister in a historic league for consecutive budgets and recalls her record speech. Heavily based on the economic survey, it outlines future intent with some immediate action, acknowledging global uncertainties. Focus is on Farmers, Poor, Youth, and Women, against nine priorities: Agriculture, Employment, Inclusive Development, Manufacturing & Services, Urban Development, Energy, Infrastructure, Innovation & R&D, and NexGen Reforms. Future budgets will follow this direction. Education, skilling and employment get ₹1.48 trillion, including a youth internship program with corporate support. Agriculture gets ₹1.52 trillion, aiming for productivity through natural farming, self-sufficiency in pulses/oilseeds, and digital technologies.
Infrastructure gets significant capital expenditure (₹11,11,111 crore), with focus on critical minerals. Tourism is supported, including cruise tourism. Coalition partners Bihar and Andhra Pradesh get allocations and infrastructure, notably industrial nodes. GST streamlining is promised; direct tax withholding, foreign company tax, angel tax, and equalization levy are rationalized. Individual tax changes favor the middle class; capital gains tax on equities slightly increases. Customs duties on gold/platinum decrease; solar manufacturing gets exemptions. Safe harbor provisions expand, reducing litigation. A new amnesty scheme settles disputes, and the tax case reopening period reduces to 5 years. MRO sector for aviation/shipping receives support. The government aims for a fiscal deficit of 4.9% this year and under 4.5% next year.