Union Budget 2025: Key reforms for middle class, farmers, entrepreneurs and Bihar

In one of the shortest full budget speeches in India’s history, Finance Minister Nirmala Sitharaman delivered a concise yet powerful address that lasted just 1 hour and 58 minutes. Despite the brevity of her speech, the Union Budget 2025 introduced sweeping reforms aimed at driving inclusive growth, strengthening economic resilience, and benefiting key sectors across the country. Special focus was placed on the middle class, farmers, women entrepreneurs, and the people of Bihar.

One of the most notable highlights of Budget 2025 is the significant income tax relief for the middle class. The government has raised the tax-free income threshold to ₹12 lakh. For salaried individuals, the new budget offers an additional standard deduction, pushing the effective tax-free income limit to ₹12.75 lakh. In addition, tax slabs have been revised, ensuring that no tax will be levied on those earning up to ₹12 lakh annually. The budget also introduces better deductions for housing loans and education expenses, enhancing disposable income and encouraging domestic spending.

'Band-aid for bullet wounds, govt bankrupt of ideas': Rahul Gandhi criticizes Union Budget 2025 (WATCH)

Farmers have been another key focus of Budget 2025. The introduction of the Pradhan Mantri Dhan-Dhaanya Krishi Yojana aims to boost productivity in 100 low-productivity districts, improve crop diversification, and provide better access to credit. A new initiative, the Mission for Aatmanirbharta in Pulses, seeks to make India self-sufficient in pulses such as Tur, Urad, and Masoor. Additional measures include higher credit limits under the Kisan Credit Card (KCC) scheme, improved post-harvest management, and the creation of the Makhana Development Board in Bihar. This board will support local farmers by improving production techniques and providing stronger marketing links.

The lower middle class is set to benefit from a range of social welfare and employment programs. The PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) scheme has been revamped, offering higher loan limits and UPI-linked credit cards to make access to credit easier for street vendors and small entrepreneurs. The government has also increased support for Saksham Anganwadi and Poshan 2.0 programs, which will provide better nutrition for over 8 crore children and 1 crore pregnant women and lactating mothers. Additionally, the Special Window for Affordable and Mid-Income Housing (SWAMIH) Fund 2 continues to offer affordable housing, with a target of completing 1 lakh residential units.

Union Budget 2025: Opposition slams NDA for Bihar-centric budget, says govt ignored other states

Bihar has received special attention in this year’s budget with several development initiatives. Key projects include a new Greenfield Airport to improve regional connectivity and the Western Koshi Canal Project to enhance irrigation. The National Institute of Food Technology Entrepreneurship and Management (NIFTEM) will help boost the state’s food processing industries, creating jobs and supporting agribusinesses. The Makhana Development Board will also help local farmers increase their incomes by enhancing production and providing market access. Investments in infrastructure, healthcare, and education will also play a crucial role in improving Bihar’s socio-economic status.

Women’s empowerment is a central theme of Budget 2025. The government has introduced several initiatives aimed at increasing female participation in the workforce. A new scheme will offer term loans of up to ₹2 crore for first-time women entrepreneurs, enabling them to start businesses across various sectors. The budget sets a target for 70% female participation in economic activities, with support through skill development programs, mentorship, and better access to credit. Additionally, rural women will benefit from the Rural Prosperity and Resilience Program, designed to promote financial independence and leadership roles in cooperatives.