Union Budget 2025-26: What You Need to Know Right Now

India's Union Budget for 2025-26 just dropped, and it’s already sparking conversations at kitchen tables, offices, and boardrooms. If you’re wondering how the numbers will affect your daily life, you’re in the right place. We’ll break down the biggest headlines, the new tax rules, and the spending pushes that could shape everything from your next salary slip to the price of a cup of chai.

Big‑Picture Numbers: Growth, Deficit & Spending

The government is targeting a 6.8% GDP growth this year, a modest bump from last year’s 6.5%. To fund that growth, the fiscal deficit is set at 5.5% of GDP, slightly higher than the 5.2% target in the previous budget. Why the rise? More spending on infrastructure, health, and education. The capital outlay jumps to ₹30 trillion, with major projects in smart cities, rail upgrades, and renewable energy getting a hefty slice.

For most of us, the key takeaway is that the government plans to invest heavily in sectors that create jobs. If you work in construction, transport, or clean tech, you might see new opportunities popping up in the next 12‑18 months.

Tax Changes That Hit Your Wallet

On the tax front, the budget introduces a few tweaks that will be felt straight away. First, the income‑tax slab for individuals earning up to ₹12 lakh stays at 5%, but the next bracket (₹12‑15 lakh) drops from 10% to 9%. It’s a small relief, yet it means a modest increase in take‑home pay for many middle‑income earners.

Corporate tax sees a slight shift too. Companies with a turnover under ₹400 crore enjoy a reduced rate of 20%, down from 22%. Larger firms remain at 25%. If you own a small business, that extra 2% could translate into better cash flow for expansion.

One controversial move: the removal of the 10% tax rebate on long‑term capital gains from equity‑linked savings schemes (ELSS). That means investors will now pay the full 15% on gains, which could lead some to rethink their portfolio mix.

Lastly, the GST on electric vehicles (EVs) is slashed from 12% to 5% for models priced under ₹20 lakh. This incentive aims to boost EV adoption, and you might see more affordable electric cars on the road soon.

Overall, the budget tries to balance growth‑driven spending with targeted tax reliefs. While the deficit widens a bit, the government argues that the extra outlay will pay off by creating jobs and spurring demand.

Keep an eye on how these policies roll out in your state. Some regions may receive additional funds for health and education, which could improve local services. And if you’re planning big purchases or investments, timing them with the new tax rules could save you a decent chunk of money.

Stay tuned to local news and official releases for detailed timelines. The Union Budget 2025-26 is more than numbers on a sheet—it’s a roadmap that will shape the economy and your pocket for the year ahead.