NEW DELHI — Finance Minister Nirmala Sitharaman presented a ₹49.9 lakh crore Union Budget for fiscal year 2025-26 on Thursday, the largest in India's history, with record allocations for health, education, and rural infrastructure.
In a budget speech lasting two hours and twelve minutes, the Finance Minister announced a new income tax regime with zero tax on earnings up to ₹12 lakh annually — a significant relief measure for the middle class that is expected to boost consumption and domestic demand.
Health and Education
The health sector received a 23% increase to ₹1.1 lakh crore, with ₹35,000 crore earmarked for the expansion of Ayushman Bharat to cover all citizens above 70 years of age. A new network of 50 central government hospitals in underserved districts was also announced.
Education allocations rose to ₹1.48 lakh crore, with a ₹20,000 crore National Education Transformation Fund to support IITs, new medical colleges, and PM Shri Schools. The National Scholarship Portal will be expanded to benefit 1.2 crore students from economically weaker sections.