One of the most controversial aspects of the budget is its special focus on Bihar, which faces elections later this year. Tejashwi Yadav, Leader of the Opposition in Bihar, dismissed the announcements as “jumla” (empty promises), questioning the lack of a special package for the state.

Union Minister of Finance and Corporate Affairs, Nirmala Sitharaman, presented the Union Budget 2025-26 in Parliament on Saturday, unveiling a roadmap for a “Viksit Bharat” (Developed India) under the theme “Sabka Vikas” (Development for All). She said that the budget emphasises poverty alleviation, quality education, healthcare, women’s economic participation, employment, and agricultural advancements. While the government hails it as a progressive and transformative budget, the Opposition has criticised it as an electoral strategy that neglects key social sectors.

The Finance Minister began her speech by quoting renowned Telugu poet and playwright Gurajada Appa Rao: “A country is not just its soil; a country is its people.” In alignment with this philosophy, the budget focuses on six key pillars:

• Zero poverty
• 100 per cent good quality school education
• Affordable and comprehensive healthcare for all
• 100 per cent skilled labour with meaningful employment
• 70 per cent women participation in economic activities
• Transforming India into the ‘Food Basket of the World’

Sitharaman said that the Union Budget aims to sustain economic momentum by fostering private investment, stimulating growth in key sectors, and enhancing the spending power of India’s rising middle class.

Agriculture: Prime Minister Dhan-Dhaanya Krishi Yojana

To strengthen India’s agricultural backbone, the budget introduces the Prime Minister Dhan-Dhaanya Krishi Yojana, covering 100 districts. The scheme will focus on improving productivity, crop diversification, irrigation facilities, and post-harvest storage.

A six-year “Mission for Aatmanirbharta in Pulses” will be launched, with NAFED and NCCF procuring pulses from farmers over the next four years. Other key agricultural initiatives include:

• Increase in Kisan Credit Card loan limit from Rs. 3 lakh to Rs. 5 lakh.
• Comprehensive Programme for Vegetables & Fruits to support horticulture.
• A five-year Mission for Cotton Productivity to improve output and global competitiveness.

MSMEs: Strengthening Small Businesses

MSMEs, which contribute 45 per cent of India’s exports, received a major boost with enhanced investment and turnover limits. The Finance Minister also announced:

• New Scheme for 5 Lakh Women, SC, and ST Entrepreneurs, providing term loans up to Rs. 2 crore over five years.
• A National Manufacturing Mission to position India as a global hub for toy manufacturing.
• Enhanced credit availability with increased guarantee cover for MSMEs.

Investment: Fostering Growth and Innovation

Investment in people, economy, and innovation is a central theme of the budget. Key announcements include:

• 50,000 Atal Tinkering Labs in government schools over five years.
• Broadband connectivity in all government secondary schools and primary health centers.
• A Centre of Excellence in AI for Education, with an outlay of Rs. 500 crore.
• Rs. 1.5 lakh crore in interest-free loans to states for capital expenditure.
• Urban Challenge Fund of Rs. 1 lakh crore to develop cities into growth hubs.
• Gyan Bharatam Mission to digitally document and conserve over 1 crore manuscripts.

Exports: Enhancing Global Competitiveness

The Export Promotion Mission will enable MSMEs to tap into global markets. Other key initiatives include:

• ‘BharatTradeNet’ (BTN): A digital public infrastructure platform for trade documentation and financing solutions.
• Support for the domestic electronic industry to integrate into Industry 4.0.
• Infrastructure and warehousing upgrades for air cargo, including perishable horticultural exports.

Reforms as the Driving Force

The Finance Minister stressed that reforms remain the key to India’s economic success. The government has introduced numerous tax reforms, emphasising a “trust first, scrutinise later” approach. The budget also proposes:

• Raising Foreign Direct Investment (FDI) in insurance from 74 per cent to 100 per cent.
• Jan Vishwas Bill 2.0, decriminalising over 100 provisions across various laws.
• A High-Level Committee for Regulatory Reforms to enhance ease of doing business.
• Investment Friendliness Index of States to promote competitive federalism.

Political Backlash: Criticism from Opposition

Despite the ambitious vision, the budget has drawn strong criticism from opposition leaders. Dr. Amit Mitra, Principal Chief Advisor to the West Bengal CM, called it a “DISASTER” for common people, citing significant cuts in:

• Social services allocation (-16 per cent)
• Housing (-4.38 per cent)
• SC/ST welfare (-3 per cent)
• Social services for welfare (-5 per cent)
• Food subsidy (-1 per cent)

Dr. Mitra highlighted alarming unemployment figures:

• 46 per cent overall youth unemployment
• 30 per cent educated youth unemployment
• 37 billion people unemployed (data from Oct-Dec 2025)

He also criticised the 100 per cent FDI in insurance, arguing it could threaten public sector companies like LIC India. Additionally, he raised concerns about stagnant manufacturing growth (15 per cent, below the promised 25 per cent) and unchecked inflation, claiming that any gains from income tax cuts would be negated.

Budget and Bihar: An Electoral Strategy?

One of the most controversial aspects of the budget is its special focus on Bihar, which faces elections later this year. Major announcements for Bihar include:

• A Board for Makhana production in North Bihar.
• Greenfield airports to boost connectivity.
• Funding for the Western Kosi Canal Project to improve irrigation.
• Expansion of IIT Patna and establishment of a National Institute of Food Technology.

Opposition leaders have accused the government of tailoring the budget to secure electoral gains in Bihar. Tejashwi Yadav, Leader of the Opposition in Bihar, dismissed the announcements as “jumla” (empty promises), questioning the lack of a special package for the state.

Government’s Defense: “A Budget for the People”

In an exclusive interview with the news channel, NDTV, Finance Minister Sitharaman dismissed the Opposition’s claims, arguing that the budget was designed for the people, not elections. She emphasised that Bihar deserved development, stating, “Isn’t Bihar a part of India? Bihar’s workers are found across the country. Shouldn’t there be work in their villages?”

Chief Minister Nitish Kumar, a BJP ally, praised the budget, calling it progressive and futuristic, particularly welcoming the greenfield airport proposal and enhanced infrastructure spending.

The Union Budget 2025-26 presents an ambitious vision for a developed, self-reliant India with significant investments in agriculture, MSMEs, exports, and innovation. However, the budget has sparked a heated political debate over its perceived electoral motives and social sector cuts.

As India moves forward, the success of these budgetary measures will depend on effective implementation and their impact on economic growth, employment, and inflation. The coming months will reveal whether this budget is truly a step toward Viksit Bharat or just another pre-election strategy.

Tax cuts to small minority, says CPM

The CPI(M) called the Union Budget 2025-26 “a cruel betrayal of the requirements of the people of India.”

“Instead of addressing the root cause of the demand problem being faced by so many sectors of the economy, the lack of purchasing power in the hands of large sections of the population because of mass unemployment and shrinking wages, the Modi government through the budget is seeking to stimulate the economy by giving tax cuts to the small minority with higher incomes even as expenditures are cut,” a party statement read.

CPI(M) argued that while the Economic Survey shows the desperate plight of India’s labour force, pointing out the decrease in earnings over the last five years, this budget with its emphasis on cutting government expenditures while giving concessions to the rich will only increase the huge inequalities in India. Instead of mobilising resources by taxing the rich and the big corporate houses and pushing up public investment that would help generate employment and ensure a minimum wage for our people, it has chosen to do the opposite. It also seeks to foster greater wealth accumulation by the rich by promoting private investment, even placing public assets and public expenditure at its service. In this Budget the government proposes 100 per cent entry of FDI in the insurance sector and privatisation of power sector as well. It is therefore a budget by the rich for the rich.

Expenditure as a percentage of GDP is destined to come down once again, as has been happening every year since 2020-21 – this time from 14.6 per cent in 2024-25 to 14.2 per cent in 2025-26, the CPI(M) said.