The government has projected an expenditure of ₹47.65 trillion for FY25, marking a 6% increase over the revised estimate for FY24. Interest payments constitute a substantial portion, with 25% of the expenditure allocated for this purpose
Revenue and Receipts
Revenue receipts, excluding borrowings, are expected to rise by 12% to ₹30.80 trillion in FY25, driven largely by an increase in tax revenue.
Deficit Targets
Fiscal Deficit: Set at 5.1% of GDP, a reduction from the revised 5.8% of GDP in FY24.Revenue Deficit: Targeted at 2% of GDP, down from the revised estimate of 2.8% in FY24.
GDP Growth
The government anticipates a nominal GDP growth rate of 10.5% for FY25, factoring in both real growth and inflation
Capital Expenditure
A record allocation of ₹11.1 lakh crore for capital expenditure, focusing on infrastructure development and modernization, particularly in the railways sector, which received an unprecedented budget of ₹2.52 lakh crore
Tax Proposals
No changes in direct or indirect tax rates. Extension of direct tax benefits for startups, sovereign wealth funds, pension funds, and certain International Financial Services Centres (IFSC) units until March 2025
New Initiatives
Launch of three key economic railway corridor initiatives and upgrading of 40,000 rail bogies to Vande Bharat standards.
Construction of an additional 20 million houses under the Pradhan Mantri Awas Yojana-Gramin and a new scheme to assist middle-class families in buying or building homes
Promoting cervical cancer vaccinations for girls aged 9-14, launching the U-WIN platform for immunization management, and extending healthcare coverage under Ayushman Bharat to ASHA and Anganwadi workers
Plans to achieve rooftop solarization of 10 million households and enhancing electric vehicle manufacturing and charging infrastructure
Establishment of a ₹1 trillion corpus to support private-sector research and innovation through low-interest loans
Research and Innovation
Strengthening digital public infrastructure to facilitate the formalization of the economy
Digital Public Infrastructure
Demographic Management
Establishment of a high-powered committee to manage population growth and demographic issues