Ahead of Budget 2025, here's a recap of Narendra Modi 3.0 government's first Budget in 10 points

As India awaits the Union Budget for the coming financial year, 2025-26, here are 10 key takeaways from the Narendra Modi 3.0 government's first Union Budget, unveiled in July 2024. To start with, Finance Minister Nirmala Sitharaman's July 2024 Budget, for the financial year ending March 31, 2025, pegged spending at Rs 48.2 lakh crore—1.2 per cent over and above the amount earmarked in Interim Budget 2024.

1. Focus Areas

In the Narendra Modi 3.0 government’s first Budget, Finance Minister Nirmala Sitharaman mentioned four focus areas: Employment, skilling, MSMEs and the middle class.

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The finance minister also laid out a list of nine priority areas to ensure ample employment opportunities for all, in tandem with the government’s ambitious Developed India vision: Productivity and resilience in agriculture, employment & skilling, inclusive human resource development & social justice, manufacturing & services, urban development, energy security, infrastructure, innovation, research & development, and next generation reforms.

2. GDP Growth

The July Budget pegged economic growth—measured by gross domestic product (GDP)—at 10.5 per cent in the financial year 2024-25, almost a percentage point above the actual expansion recorded in the previous year.

3. Fiscal Deficit Target

The government targeted to close FY25 with the fiscal deficit contained at 4.9 per cent of the country’s GDP, 20 basis points below the 5.1 per cent goal set in Interim Budget. It set a goal of containing the deficit at 4.5 per cent by FY26.

4. Market Borrowings

The Budget 2024 mentioned a Rs 12,000 crore reduction in the government’s gross market borrowings to Rs 14.01 lakh crore for FY25, leading to net market borrowings of Rs 11.63 lakh crore against Rs 11.75 lakh crore in Interim Budget.

5. Infrastructure

In July, the Budget affirmed a record capex outlay for infrastructure at Rs 11.1 lakh crore, 3.4 per cent of GDP—unchanged from Interim Budget.

It also mentioned long-term loans worth Rs 1.5 lakh crore to support infrastructure investments in states.

6. Rural & Urban Development

The government committed to spending Rs 2.66 lakh crore on rural development in FY25 and Rs 2.2 lakh crore on central assistance for affordable urban housing in five years.

7. Job Creation

The Finance Minister earmarked Rs 2 lakh crore for job creation over the next five years. She also announced Rs 1.52 lakh crore allocation for agriculture and allied activities and promised to launch three schemes for employment-linked incentives.

8. Taxes: Personal

The Budget brought a number of tax-related changes, including a tweak in the new income tax regime aimed at offering salaried employees savings amounting to Rs 17,500. Key proposals included a 50 per cent increase in standard deduction for salaried employees to Rs 75,000 under the new regime.

9. Taxes: Corporate

It cut the corporate tax rate applicable to foreign firms by 500 bps to 35 per cent in a bid to attract investments.

10. Duties & capital gains taxes

The Budget hiked the short-term capital gains tax—applicable to profits on equities sold within one year of buying—to 20 per cent from 15 per cent and the long-term capital gains tax—applicable to gains beyond Rs 1.25 lakh arising out of sales after 12 months of buying—to 12.5 per cent from 10 per cent.

It cut the import duty applicable to gold and silver to 6 per cent from 15 per cent, and on mobile phones and related parts by 500 bps to 15 per cent.