Budget Big Announcements: Finance Minister Nirmala Sitharaman announced the introduction of a new tax law in Parliament. The budget focuses on farmers, women, youth, and the middle class. Other key announcements include increasing seats in IITs and medical colleges and establishing a Center of Excellence for AI.

New Delhi: The Modi government has provided a tax relief bigger than expected. The Finance Minister has announced that income up to ₹12 lakh will be completely tax-free. Along with this, the government is introducing a new tax law.

Finance Minister Nirmala Sitharaman, while making this announcement, stated that a bill for the new tax law will be presented in Parliament next week.

In her budget speech, the Finance Minister focused especially on farmers, women, youth, senior citizens, and the middle class. She announced an increase in seats at IITs and medical colleges and also declared the establishment of a Center for Excellence for Artificial Intelligence (AI).

Here’s a look at the key announcements of the 2025-26 budget.

➤ No tax will be levied on income up to ₹12 lakh.
➤ A Makhana Board will be established in Bihar.
➤ The limit for the Kisan Credit Card (KCC) loan has been increased from ₹3 lakh to ₹5 lakh.
➤ A National Institute of Food Technology, Entrepreneurship, and Management will be set up in Bihar, promoting food processing activities in the entire eastern region.
➤ Infrastructure in IITs established after 2015 will be expanded, adding 6,500 new seats. IIT Patna will also be expanded.
➤ A Center of Excellence for AI will be established, with a budget allocation of ₹500 crore.
➤ Five world-class skill centers will be built in collaboration with foreign institutions.
➤ States will receive an interest-free loan of ₹1.5 lakh crore for 50 years to develop infrastructure.
➤ For medical education, 10,000 new seats will be added in colleges and hospitals in the financial year 2025-26. The government aims to increase the number of new seats to 75,000 over the next five years.
➤ The investment and turnover limits for Micro, Small, and Medium Enterprises (MSMEs) have been increased by 2.5 times and 2 times, respectively. First-time entrepreneurs from women, Scheduled Castes, and Scheduled Tribes will receive financial assistance of ₹5 lakh.
➤ The UDAN scheme will be relaunched in a new form, adding 120 new destinations, with a target of connecting 4 crore additional passengers.
➤ A target has been set to generate at least 100 GW of nuclear power by 2047.
➤ A ₹1 lakh crore Urban Challenge Fund has been announced to support creative redevelopment, with a focus on water and sanitation infrastructure.
➤ Daycare cancer centers will be established in all district hospitals over the next three years.
➤ A major change in the tax regime is expected, with the Finance Minister set to present a new tax bill in Parliament next week.
➤ Under Jan Vishwas 2.0, the Modi government will abolish 100 laws.
➤ The government has completely removed customs duty on 36 life-saving drugs and reduced it to 6% on six other life-saving medicines.