Union Budget 2025-26: Key Highlights and Expectations

As the Union Budget 2025-26 approaches, various sectors across India are voicing their expectations and recommendations to foster economic growth and societal well-being. This article delves into the anticipated measures for the education, Micro, Small, and Medium Enterprises (MSME), and real estate sectors, along with discussions on duties, tax relaxations, and employment generation strategies.

Expectations from the Education Sector

The education sector is advocating for increased budgetary allocations to enhance infrastructure, particularly in rural and semi-urban areas. Investments in high-speed internet connectivity, digital devices, and smart classrooms are essential to eliminate the digital divide and promote equal learning opportunities. Additionally, there is a call for collaborations between EdTech platforms and educational institutions especially government institutions such as IIT and IIM to provide accessibility and industry specific skills in education. Stakeholders have high Union Budget 2025 Expectations, particularly for policies that enhance inclusivity and quality in education.

Expectations from the MSME Sector

MSMEs are the backbone of India's economy, and stakeholders are seeking comprehensive support in the upcoming budget. Key expectations include:

Tax Reforms: Simplification of tax structures and reduction in compliance burdens to facilitate ease of doing business.
Credit Access: Enhanced access to credit through government-backed schemes and incentives for financial institutions to lend to MSMEs.
Skill Development: Initiatives aimed at upskilling the workforce to meet industry demands and improve productivity.

These measures are anticipated to bolster the MSME sector's contribution to GDP and employment. As part of Budget 2025 Expectations, MSMEs hope for stronger initiatives to address financial challenges and promote growth.

Expectations from the Real Estate Sector

The real estate sector is hopeful for measures that will stimulate growth and affordability:

Tax Incentives: Raising the tax exemption limit on home loan interest from the current ₹2 lakh to a higher threshold to encourage homebuyers.
Affordable Housing: Policies aimed at expanding the definition of affordable housing and providing subsidies to make homeownership more accessible.
Infrastructure Development: Increased spending on infrastructure projects to improve connectivity and enhance the real estate market's attractiveness.

For many, Budget 2025-2026 expectations for the real estate sector include incentivizing investments and ensuring affordability, which can drive both economic activity and consumer confidence.

Expectation on Duties and Tax Relaxation

Across various industries, there is a strong demand for streamlining of duties and tax relaxations:

Income Tax Relief: A significant portion of individual taxpayers are advocating for lower income tax rates and higher exemption limits to increase disposable income and stimulate consumption. The government is reported to explore the possibility of exempting annual income up to Rs 10 lakh from taxes or introducing a new 25% tax rate for earnings between Rs 15 lakh and Rs 20 lakh, replacing the existing 30% rate for income over Rs 15 lakh.
Capital Gains Tax: While there have been discussions around restructuring capital gains tax, the government is reportedly not considering any structural changes in the upcoming budget.
GST Adjustments: Industries such as real estate, education and various other sectors are requesting reductions in GST rates on construction materials to lower costs and boost demand.

These areas of focus align with broader Union Budget 2025 expectations, as citizens and businesses alike seek relief to counter financial pressures.

Expectations For NRIs

NRIs anticipate the Union Budget 2025 for reforms to simplify tax compliance and enhance financial flexibility. Key expectations include simplifying tax relief under Double Taxation Avoidance Agreements (DTAA), extending ESOP tax benefits, streamlining TDS procedures, addressing e-verification challenges, expanding the simplified ITR-1 form, enabling overseas financial transactions, and extending deadlines for belated returns. These changes aim to improve NRI engagement and support economic contributions.

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Expectations on Employment Generation

Employment generation and employability is a critical focus area, and the budget can contribute through:

Public Spending: Enhancing public spending on infrastructure projects can create numerous job opportunities across various sectors.
Support for Startups and MSMEs: Providing financial incentives, tax breaks, and ease of compliance can encourage entrepreneurship and employment.
Skill Development Programs: Allocating funds for vocational training and skill development initiatives to equip the workforce for emerging industries.

In conclusion, the Union Budget 2025-26 is set to address critical areas that can drive India's economic growth and societal progress. By focusing on education, MSMEs, real estate, tax rationalization, and employment generation, the budget can lay a robust foundation for a prosperous future.

*Disclaimer: The Union Budget 2025-26 expectations and opinions expressed in this article are based on available information and expert analyses as of January 23, 2025. Actual budgetary decisions may differ, and readers are advised to refer to official government releases for accurate and updated information.

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