New Delhi: Over the last 11 years, Union Budgets presented under Prime Minister Narendra Modi’s government have focused strongly on reforms, growth, and improving the lives of common people. These Budgets have aimed at boosting ease of doing business, supporting MSMEs and startups, and increasing purchasing power, while keeping the long-term goal of ‘Viksit Bharat’ by 2047 in focus.
Key changes began with Budget 2014-15
The reform journey started with the Union Budget 2014-15. The government raised the personal income tax exemption limit from Rs 2 lakh to Rs 2.5 lakh and to Rs 3 lakh for senior citizens. The Section 80C investment limit was also increased to Rs 1.5 lakh, giving relief to taxpayers.
To attract global investors, the government increased the FDI limit in defence and insurance from 26 per cent to 49 per cent. It also announced the development of 100 Smart Cities, with an initial allocation of Rs 7,060 crore, and focused on rural roads under the Pradhan Mantri Gram Sadak Yojana.
Big push to reforms in recent Budgets
By the time of Union Budget 2025-26, the reform agenda became stronger. A major step was the introduction of the Income Tax Bill, 2025, aimed at replacing the outdated direct tax system and making tax laws simpler and more efficient.
Tax relief for companies and individuals
Corporate tax reforms offered a 22 per cent tax rate for companies not claiming exemptions and 15 per cent tax for new manufacturing firms. For individuals, the new tax regime brought lower rates and wider slabs.
Under the revised system, people earning up to Rs 12 lakh, or Rs 12.75 lakh for salaried employees, do not pay income tax, helping increase savings and spending.
Support for farmers, MSMEs and innovation
Around 1.7 crore farmers are set to benefit from the PM Dhan-Dhaanya Krishi Yojana, higher KCC loans, and support for pulse production. MSMEs received a boost as the credit guarantee limit was doubled to Rs 10 crore.
The government also announced funding for private R&D, nuclear energy, AI in education, and 50,000 Atal Tinkering Labs to build future technology leadership.
Clear path to Viksit Bharat
With plans to reduce the fiscal deficit to 4.4 per cent, raise FDI in insurance to 100 per cent, and simplify laws through Jan Vishwas 2.0, the government has signalled a clear reform-driven path towards a developed India.
