Introduction
Yesterday’s Union Budget presented a comprehensive economic roadmap with a blend of fiscal discipline, targeted spending, and growth-oriented measures. With total expenditures projected at ₹45 lakh crore, the government reaffirmed its commitment to infrastructure, digital transformation, healthcare, and social welfare. The fiscal deficit was maintained at 5.1% of GDP, reflecting cautious but progressive fiscal management in a challenging global economic environment.
1. Total Budget Outlay
The government announced a total budget outlay of ₹45 lakh crore, marking an increase of over 8% compared to the previous year.
2. Fiscal Deficit Target
The fiscal deficit was pegged at 5.1% of GDP, signaling continued efforts toward fiscal consolidation without stifling growth.
3. Capital Expenditure Boost
Capital expenditure saw a significant rise to ₹10.2 lakh crore, up more than 13%, emphasizing long-term investments.
4. Infrastructure Investment Focus
Infrastructure initiatives received priority funding, with special emphasis on transport, logistics, and urban renewal.
4.1 Roads & Highways Allocation
The Ministry of Road Transport and Highways received ₹2.2 lakh crore, facilitating connectivity projects nationwide.
4.2 Railways Modernization
The railways budget was expanded to ₹2.4 lakh crore, boosting modernization and passenger safety.
5. Digital Transformation Initiatives
Allocations for digital infrastructure and technology were increased to support AI, cloud adoption, and public digital systems.
5.1 AI & Emerging Tech Funding
The budget earmarked funding to support responsible AI adoption in governance, healthcare, and education.
6. Health & Well-Being
Healthcare received ₹1.05 lakh crore, with stronger emphasis on preventive care and augmentation of medical infrastructure.
6.1 Health Research & Innovation
Special funding was provided for life science research, pandemic preparedness, and health data analytics systems.
7. Education & Skills Development
Education and skilling programs were allocated ₹1.15 lakh crore, focusing on digital learning and future-ready workforce training.
8. MSME Support and Credit Access
Credit support for MSMEs was expanded through additional guarantees and simplified access to working capital.
9. Agriculture & Rural Sector
Agricultural programs, including income support and rural infrastructure, were boosted with allocations exceeding ₹1.2 lakh crore.
10. Social Welfare & Safety Nets
Schemes for women, elderly, and underprivileged communities received enhanced funding aimed at inclusive growth.
11. Climate & Sustainable Development
Climate resilience initiatives and renewable energy projects were backed with increased allocations to support net-zero goals.
12. Tax Relief and Incentives
No major changes in direct taxes were introduced, but incentives for startups, research, and capital investments were reaffirmed.
13. Focus on Jobs and Employment
Job creation strategies and skill training initiatives aim to support an estimated 50 million youth entering the workforce over the next decade.
14. Strengthening Public Services
Allocations were strengthened for public services such as water supply, sanitation, and energy access to improve quality of life.
15. Global Economic Environment Consideration
The budget acknowledged global uncertainties such as inflation and supply chain disruptions while emphasizing resilience and domestic growth levers.
Conclusion
Yesterday’s Union Budget balanced fiscal prudence with growth-enabling policies. With strong allocations for infrastructure, digital transformation, healthcare, rural development, and skill creation, the budget aims to propel inclusive and sustainable economic growth. By maintaining the fiscal deficit at 5.1%, the government signaled responsible stewardship while boosting key sectors that impact citizens, industry, and future economic stability.
