Union Finance Minister Nirmala Sitharaman presents the Union
Budget 2025-26 in the Lok Sabha, in New Delhi, Saturday, Feb. 1, 2025. (Sansad
TV via PTI Photo)
NEW DELHI — Union Finance Minister Nirmala Sitharaman on Saturday said the top
50 tourist destinations in the country will be developed in partnership with
states in a "challenge mode", as she emphasised tourism as a driver
of employment-led growth and unveiled a series of initiatives aimed at
bolstering infrastructure, skill development and ease of travel.
The Ministry of Tourism has been earmarked a significant
increase in its Budget allocation for the 2025-2026 fiscal, with a focus on
enhancing tourism infrastructure, promoting domestic and international travel,
and ensuring the safety of tourists, particularly women.
The total Budget allocation for the ministry for
2025-2026 stands at Rs 2,541.06 crore, marking a substantial increase from the
revised estimate of Rs 850.36 crores in 2024-2025.
Presenting her eighth straight Union Budget, Sitharaman
said the government will promote homestays by extending Mudra loans, and
improve connectivity to tourist spots to enhance accessibility.
"The state governments will be responsible for
providing land to build essential infrastructure. To further boost tourism,
hotels in the key destinations will be included in the harmonised
infrastructure list, ensuring better access to financing and development support,"
she said.
Outlining the broader roadmap, Sitharaman said, "We
will facilitate employment-led growth by organising intensive skill development
programmes for our youth, including institutes of hospitality management."
States that demonstrate effective destination management
-- including maintaining tourist amenities, cleanliness, and marketing efforts
-- will receive performance-linked incentives, the finance minister said.
The government will also introduce streamlined e-visa
facilities and visa fee waivers for select tourist groups to attract
international visitors, she said.
Reaffirming the focus on spiritual and heritage tourism
set in the Budget last July, Sitharaman highlighted the special initiatives for
sites associated with Gautama Buddha's life.
Medical tourism, under the 'Heal in India' initiative,
will also receive a boost through public-private partnerships (PPPs), capacity
building, and relaxed visa norms.
A major portion of the Budget for the tourism ministry
has been allocated to tourism infrastructure development, with Rs 1,900 crores
earmarked for the Integrated Development of Tourism Circuits under the Swadesh
Darshan scheme.
This initiative focuses on creating theme-based tourist
circuits across the country, emphasising high-value, competitive, and
sustainable tourism.
Additionally, the Pilgrimage Rejuvenation and Spiritual
Heritage Augmentation Drive (PRASHAD) scheme, aimed at developing pilgrimage
and heritage sites, also received substantial funding to enrich spiritual and cultural
tourism experiences.
The Centre has prioritised promotion and publicity,
allocating funds for both domestic and international campaigns. Efforts will be
made to promote India's diverse tourist destinations, with a special focus on
the Northeast region and Jammu and Kashmir.
Internationally, the tourism ministry plans to position
India as a premier tourist destination through targeted marketing campaigns in
key markets such as Spain, China, and France.
The establishment of representative offices in the new
markets is also part of the strategy to attract more international tourists.
To address the growing demand for skilled manpower in the
tourism sector, the ministry has been allocated Rs 60 crore for training and
skill development programmes.
Initiatives like the "Hunar Se Rozgar Tak"
programme aim to train youth, particularly from underprivileged backgrounds, to
meet the sector's needs.
The ministry is also focusing on certifying the skills of
service providers and promoting entrepreneurship in the tourism industry.
In a significant move to ensure the safety of women
tourists, the ministry has introduced the Safe Tourist Destination for Women
scheme, funded by the Nirbhaya Fund.
This initiative aims to create a secure and
women-friendly environment at tourist destinations, allowing women to travel
without fear of crime or harassment.
The scheme reflects the government's commitment to making
tourism more inclusive and safe for all, as per the ministry.
The Budget also includes investments in public
enterprises such as the India Tourism Development Corporation (ITDC) and
Kumarakom Frontier Hotels Pvt Ltd, with allocations of Rs 70.42 crore and Rs 10
crore, respectively.
These investments are expected to boost tourism
infrastructure and services, particularly in the key tourist destinations.
Additionally, the Northeastern region continues to be a
priority, with an allocation of Rs 240 crore for 2025-2026 to support the
development of tourism infrastructure and promote the region as a prime tourist
destination.
Union Budget 2025-2026
highlights
Imported life
saving drugs, medicines to become cheaper; knitted fabrics, smart meter
costlier
Imported life saving drugs and medicines used in the
treatment of cancer, rare and other severe chronic diseases, along with
imported premium cars and motorcycles, are set to become cheaper with Finance
Minister Nirmala Sitharaman announcing cuts in customs duty in the Union Budget
2025-26.
However, certain items like interactive flat panel (touch
screen) displays imported as fully built units and certain knitted fabrics will
become costlier due to increase in basic customs duties.
In her speech, Sitharaman said, "To provide relief
to patients, particularly those suffering from cancer, rare diseases and other
severe chronic diseases, I propose to add 36 lifesaving drugs and medicines to
the list of medicines fully exempted from basic customs duty (BCD)."
She further said, "I also propose to add six
lifesaving medicines to the list attracting concessional customs duty of 5 per
cent. Full exemption and concessional duty will also respectively apply on the
bulk drugs for manufacture of the above."
The finance minister also announced that "specified
drugs and medicines under Patient Assistance Programmes run by pharmaceutical
companies are fully exempt from BCD, provided the medicines are supplied free
of cost to patients."
"I propose to add 37 more medicines along with 13
new patient assistance programmes," Sitharaman said.
Although the government has cut duties on several
imported items, including marbles, granite and footwear, the impact was
neutralised by a hike in Agriculture Infrastructure and Development Cess
(AIDC).
Significantly, as per the budget announcement imported
premium cars and other motor vehicles with CIF (cost, insurance, and freight )
value more than USD 40,000 (about Rs 35 lakh) or with engine capacity more than
3,000 cc for petrol-run vehicles and more than 2,500 cc for diesel-run vehicles
or with both will become cheaper as the customs duty has been reduced to 70 per
cent from 100 per cent earlier.
Similarly, motorcycles with engine capacity of 1,600 cc
and above imported in completely built unit (CBU) form will also be cheaper as
tariff has been slashed to 30 per cent from 50 per cent.
Likewise, bikes with engine capacity not exceeding 1,600
cc imported as CBU will also become cheaper as tariff has been cut to 40 per
cent from 50 per cent.
Motorcycles with engine capacity not exceeding 1,600 cc
in imported semi knocked down (SKD) form and completely knocked down (CKD) form
will also become cheaper as customs duties have been cut on these items too.
There will also be reduction in prices of imported
motorcycles with engine capacity of 1,600cc and above in SKD form following a
cut in custom duty to 20 per cent from 25 per cent and the same imported in CKD
form will now attract 10 percent duty, down from 15 per cent.
The budget also announced reduction in customs duty on
imported parts of electronic toys to 20 per cent from 25 per cent and that of
synthetic flavouring essences and mixtures, used in food and drink industries
to 20 per cent from 100 per cent.
Similarly, articles of Jewellery, goldsmiths’ and
silversmiths’ ware and ethernet switches of carrier grade will also become
cheaper.
On the other hand, smart meters, solar cells, imported
footwear, imported candles and tapers; imported yachts and other vessels will
become costlier as cut in import duties on these items have been offset by an
increase in AIDC.
PVC Flex Films, PVC Flex Sheets, PVC Flex Banner will
also become costlier due to imposition of 7.5 per cent AIDC.
Certain imported knitted fabrics are also like to be
costiler as the custom duty structure on it has been changed to 20 per cent or
Rs115/kg, whichever is higher.
Interactive Flat Panel Displays which are imported as
completely built units will also become costlier as the duty has been hiked to
20 per cent from 10 per cent earlier.
FM says 1 cr more
people will pay no income tax due to hike in rebate
The government has put "substantial amount of
money" in hands of people through rejig of I-T slabs in the Budget and an
additional 1 crore people will pay no tax due to hike in tax rebate to Rs 12
lakh per annum, Finance Minister Nirmala Sitharaman said on Saturday.
The 2025-26 Budget hikes the tax rebate available to
individual taxpayer to Rs 12 lakh from next fiscal, from Rs 7 lakh currently.
"One crore more people will pay no income tax due to
hike in rebate to Rs 12 lakh," Sitharaman said at the post-Budget press
conference.
"Government has put substantial amount of money in
hands of people" through I-T rate rejig, she said, adding that the
government has responded to the voice of people.
The Budget has revised the tax slabs for computing tax
liability on income earned in 2025-26 for those with income of more than Rs 12
lakh and filing ITR under new tax regime.
Under the new slab, income of up to Rs 4 lakh will be
exempt. A 5 per cent tax will be levied for income earned between Rs 4-8 lakh,
10 per cent for Rs 8-12 lakh, 15 per cent for Rs 12-16 lakh.
A 20 per cent income tax will be levied on income between
Rs 16-20 lakh, 25 per cent on Rs 20-24 lakh and 30 per cent above Rs 24 lakh
per annum.
"We have reduced tax rates to benefit the middle
class," Sitharaman added.
Finance Secretary Tuhin Kanta Pandey said tax bouyancy of
1.42 is expected in next fiscal, lower than 2 in current fiscal.
"We have assumed a moderate tax revenue bouyancy
looking into the sacrifice of revenue (on account of rebate)," Pandey
said.
He said 75 per cent of the income tax filers have already
moved to the new income tax regime. "We expect every taxpayer to shift
eventually."
Education in
Budget: AI push, infra expansion at 5 new IITs, 10000 extra medical seats
Infrastructure expansion at the five new IITs to
facilitate 6,500 more students, 10,000 new medical seats and a big Artificial
Intelligence push. These are among the big announcements made by the government
for the education sector in the 2025-26 budget.
The Ministry of Education has been allocated more than Rs
1.28 lakh crore in the Union Budget 2025-26, higher than the revised estimate
of Rs 1.14 lakh crore in 2024-25.
While the Higher Education department has been allocated
an amount of Rs 50,067 crore, the school education department has received Rs
78,572 crore.
Finance Minister Nirmala Sitharaman, who presented her
eighth straight Union Budget, also said the government will launch 'Bharatiya
Bhasha Pushtak' scheme to provide digital form of Indian language books for
schools and higher education.
She announced the government will create additional
infrastructure at five Indian Institutes of Technology (IITs) and expand IIT
Patna. The announcement to expand IIT Patna comes ahead of the Bihar Assembly
polls due later this year.
"The total number of students in 23 IITs has
increased by 100 per cent from 65,000 to 1.35 lakh in the past 10 years.
Additional infrastructure will be created in the five IITs started after 2014
to facilitate education for 6,500 more students. Hostel and other
infrastructure capacity at IIT Patna will also be expanded," she said.
The IITs have been allocated an amount of Rs 11,349 crore
in the union budget, up from a revised estimate of Rs 10,467 crore in current
financial year.
Sitharaman announced that 10,000 additional seats will be
added in medical colleges and hospitals next year towards the goal of adding
75,000 seats over the next five years.
"Our government has added almost 1.1 lakh
undergraduate and postgraduate medical education seats in 10 years, an increase
of 130 per cent. In the next year, 10,000 additional seats will be added in
medical colleges and hospitals towards the goal of adding 75,000 seats in the
next five years," she said.
The FM also announced 10,000 fellowships will be provided
for technology research in IITs and IISc over the next five years.
"Five national centres for excellence for skilling
with global expertise and partnerships will be set up and 50,000 Atal Tinkering
Labs will be set up in government schools in the next five years to cultivate
scientific temper in young minds," she said.
Sitharaman said broadband connectivity will be provided
to all government secondary schools and primary healthcare centres in rural
areas.
"I had announced three centres of excellence in AI
for agriculture, sustainable cities, and health in 2023. Now, a Centre of
Excellence in AI for education will be set with an outlay of Rs 500
crore," she said, in a big Artificial Intelligence (AI) push in education.
From University Grants Commission (UGC) to National
Council of Education Research and Training (NCERT), most bodies under the
Ministry of Education have received an increased allocation.
Top business schools -- Indian Institutes of Managements
(IIMs), which witnessed consistent cut in their allocated budget in a push to
make them self-reliant, have also received an increased allocation of Rs 251
crore as against a revised estimate of Rs 227 crore last year.
However, the budget granted to Indian Institute of
Science, Education and Research (IISERs) has seen a drop of Rs 137 crore.
Similarly, the allocated amount for World Class Institutions, has been reduced
by more than 50 per cent. Last year, the amount allocated was Rs 1000 crore
which has now been reduced to Rs 475 crore.
Budget 2025-26:
Govt earmarks Rs 300 cr for modernisation of prisons
The Centre on Saturday proposed a budgetary allocation of
Rs 300 crore for the modernisation of prisons during the next financial year,
the same as the current fiscal but which was later revised to Rs 75 crore.
According to the Budget presented by Finance Minister
Nirmala Sitharaman, the provision is for the "expenditure on modernisation
of prisons".
In the 2024-25 fiscal, the government had initially made
a provision of Rs 300 crore for prison modernisation, but it was later revised
to Rs 75 crore.
A sum of Rs 86.95 crore was given for the modernisation
of prisons during 2023-24.
According to the Union Home Ministry, it attaches high
importance to efficient prison management and correctional administration due
to the significance of prisons in the criminal justice system.
In May 2023, the Home Ministry had finalised a
comprehensive 'Model Prisons Act' with provisions regarding establishment and
management of high security jail, open jail and "protecting the society
from the criminal activities of hardened criminals and habitual offenders"
among others.
Its features include legal aid to prisoners, provision of
parole, furlough and premature release etc. to incentivise good conduct. It
also focuses on vocational training and skill development of prisoners and
their reintegration into society.
The Model Act is a comprehensive document which covers
all relevant aspects of prison management including provisions for reformation,
rehabilitation and integration of prisoners in the society.
It also has provision for 'Welfare Programs for
Prisoners' and 'After-Care and Rehabilitation Services', as an integral part of
institutional care.
Union Home Minister Amit Shah had said in 2023 that
efficient prison management plays a critical role in the criminal justice
system and the Government of India attaches high degree of importance to
supporting states and union territories in this regard.
