Finance Minister Nirmala Sitharaman presented India’s Union Budget for 2025-26 on February 1, 2025, focusing on enhancing the spending power of the middle class, promoting inclusive development, and encouraging private investment to stimulate economic growth.  Key Highlights: 1. Fiscal Measures: • Fiscal Deficit Reduction: The government plans to reduce the fiscal deficit to 4.4% of the Gross Domestic Product (GDP), down from 4.8% in the current fiscal year. The fiscal deficit represents the gap between the government’s income and expenditure.  • Borrowing Plans: To fund various projects and initiatives, the government intends to borrow ₹14.82 lakh crore in total, with net borrowings (after repayments) amounting to ₹11.54 lakh crore for the year 2025-26.  2. Tax Reforms: • *Personal Income Tax Relief: The income level up to which no personal income tax is charged has been increased to ₹12 lakh. This move aims to boost household consumption and savings by leaving more money in the hands of taxpayers. * • Customs Duty Adjustments: The government has reduced basic customs duties on certain marine products and critical minerals. Additionally, 36 life-saving drugs have been exempted from customs duties, potentially lowering their prices.  3. Foreign Direct Investment (FDI): • Insurance Sector: The FDI limit in the insurance sector is proposed to be raised to 100% from the previous 74%. This change is intended to attract more foreign investment and deepen market penetration in the insurance industry.  4. Agriculture and Manufacturing Initiatives: • Agricultural Missions: The government has launched a six-year mission to boost the production of pulses (such as tur, urad, and masoor dals) and a five-year mission to enhance cotton production. These initiatives aim to increase agricultural output and support farmers.  • National Manufacturing Mission: A new mission has been established to support the ‘Make in India’ program. It includes enhanced credit guarantees for small and medium-sized enterprises (SMEs) and the creation of funds to support startups and infrastructure development.  5. Infrastructure and Connectivity: • Regional Air Connectivity: Plans have been announced to improve regional air connectivity by adding 120 new destinations over the next decade. This initiative aims to make air travel more accessible across the country.  • Critical Minerals Development: A new policy will be introduced to develop critical minerals, focusing on securing essential resources for various industries.  6. Social Welfare and Employment: • Support for Gig Workers: Recognizing the contribution of gig workers (such as those working with online platforms), the government has introduced a social security scheme to ensure their welfare.  Overall, the 2025-26 budget emphasizes prudent financial management while implementing measures to stimulate economic growth, support key sectors, and enhance social welfare.