Panchayat strengthening through RGPSA expands local governance capacity and earmarks funding for rural infrastructure and sanitation.
The budget establishes Rajiv Gandhi Panchayat Sashaktikaran Abhiyan to strengthen Panchayat capacity and governance, while enhancing funding for the Backward Regions Grant Fund, increasing allocations for rural drinking water and sanitation, and earmarking Rural Infrastructure Development Fund resources for rural warehousing facilities.

Multisectoral nutrition programme targets high-burden districts with intensified maternal and child nutrition funding and delivery.
A central government announced a targeted Multisectoral Nutrition Augmentation Programme for 200 high-burden districts to intensify maternal and child nutrition interventions, alongside increased allocations to Integrated Child Development Services, the Mid Day Meals programme, and the Rajiv Gandhi Scheme for Empowerment of Adolescent Girls (SABLA) to strengthen district-level delivery.

Turnover limit for compulsory tax audit increased, easing compliance burden and expanding presumptive taxation eligibility.
Proposals include a capital gains tax exemption for reinvestment of residential property sale proceeds into equity of a manufacturing SME for new plant and machinery; a weighted deduction of 150 per cent for qualifying manufacturing sector skill development expenditure under specified guidelines; and an increase in the turnover threshold for compulsory tax audit and presumptive taxation to widen eligibility for simplified compliance.

Vaccine security: establish integrated vaccine unit, modernize facilities, expand ASHA roles and medical college upgrades.
Government policy to secure vaccine availability by establishing an integrated vaccine unit near Chennai and modernizing existing vaccine facilities to sustain disease eradication and prevention efforts. ASHA responsibilities are expanded to include prevention of Iodine Deficiency Disorders, ensuring universal immunisation and promoting child spacing. The PradhanMantriSwasthyaSurakshaYojana is extended to support upgradation of additional government medical colleges to strengthen immunisation delivery and health infrastructure.

Restructuring of rural livelihood scheme expands funding, strengthens women's self help group corpus and institutional support.
Swarnajayanti Gram Swarojgar Yojana has been restructured into the National Rural Livelihood Mission to promote rural self employment with increased central allocation, enhanced financial support for women's self help group corpuses, and creation of a national livelihoods foundation, while promoting programmatic synergy with the rural employment guarantee to align employment provision with agriculture and allied livelihoods.

National Family Benefit Scheme lumpsum grant increased, enhancing death benefit protection for primary breadwinners in BPL families.
Monthly pensions for BPL beneficiaries under the Widow Pension Scheme and the National Disability Pension Scheme were raised, and the one-time death benefit under the National Family Benefit Scheme for death of a primary breadwinner aged 18-64 years was doubled, increasing the lumpsum payment available to eligible BPL families; these changes are funded through an increased allocation to the National Social Assistance Programme to strengthen social security for weaker sections.

General Anti Avoidance Rule proposed to counter aggressive tax avoidance, paired with AMT extension and STT reduction.
The budget proposes three operative measures: reducing the Securities Transaction Tax on cash delivery trades to lower capital market transaction costs; extending the Alternate Minimum Tax to all persons except companies claiming profit linked deductions to curb erosion of the tax base from preferential deductions; and introducing a General Anti Avoidance Rule to counter aggressive tax avoidance schemes, with application subject to review by a GAAR panel to ensure use only in appropriate cases.

Weighted deduction expansions for R&D and agri extension, and extended sunset for power sector profit exemption.
The budget proposes extending the 200% weighted deduction for in house R&D for five years and introducing a 150% weighted deduction for agri extension services. It also extends the sunset date by one year to permit power sector undertakings set up by that date to claim a 100% profit deduction for ten years and extends a 20% additional depreciation allowance to new assets of power generation companies.

Tax collection at source on cash bullion purchases and mineral trading proposed to deter unaccounted money.
Proposals introduce compulsory reporting for assets held abroad, permit extended reopening of assessments for such assets, expand tax collection at source on high value cash purchases of bullion and on mineral trading, impose withholding on specified immovable property transfers, increase scrutiny of funds received by closely held companies and tax unexplained money, credits, investments and expenditures at a flat highest rate of 30 per cent.

Withholding tax on interest payments eased to lower borrowing costs and expand targeted investment incentives across sectors.
Withholding tax on interest payments for external commercial borrowings is proposed to be reduced for specified stressed infrastructure sectors to provide lower-cost foreign financing; restrictions that previously limited Venture Capital Funds to nine sectors are removed; the cascading effect of Dividend Distribution Tax in multi-tier corporate structures is to be eliminated; concessional tax treatment for repatriated dividends from foreign subsidiaries is extended for a further limited period; and the investment-linked deduction rate for qualifying capital expenditure in targeted sectors is increased while new eligible activities are added.

Tax exemption limit increase changes personal income tax slabs and adds deductions for savings interest and health expenses.
The budget revises the personal income tax structure by raising the basic exemption threshold and extending the upper limit of the middle tax slab, creating a three-tier marginal rate schedule. It also introduces a deduction for savings bank interest, a deduction for preventive health checkups, and exempts senior citizens without business income from advance tax payment.

Divestment policy change: CPSEs allowed buy-backs and stock listings to enhance market parity while State retains ownership control.
Government policy allows CPSEs in divestment mode to undertake buy-backs and obtain stock exchange listings, expanding treasury management options to improve returns on public assets, support transparent divestment processes, and unlock stakeholder value, while the State retains majority ownership and management control (at least 51 percent).

Direct Taxes Code enactment pursued, with GST model legislation drafted and a PAN-based GST network to enhance tax transparency.
The government committed to early enactment of the Direct Taxes Code Bill after receipt of the Parliamentary Standing Committee report, while GST implementation preparatory work continues: the Constitution Amendment Bill for GST remains with the Committee and model legislation for Centre and State GST is being drafted. The GST Network will be set up as a National Information Utility to provide PAN based registration, return filing and payments processing on a shared platform to enhance transparency and check tax evasion.

Central subsidies reoriented for better targeting, with direct transfers and Aadhaar-enabled delivery piloted to reduce leakage.
The Budget pledges full provision for Food Security Act subsidies while proposing revision of other subsidies that are unviable or poorly targeted, and sets a medium term objective to reduce central subsidy burden. Implementation measures include a mobile Fertilizer Management System for end to end tracking, phased direct transfer of subsidies to retailers and farmers, accelerated Aadhaar enabled payments rollout for scheme disbursements, and pilot projects for direct bank reimbursement of LPG and kerosene subsidies alongside Aadhaar validation of PDS ration cards.

Effective Revenue Deficit concept introduced to reorient fiscal management towards reducing consumptive deficits and increasing capital spending.
Amendments to the Fiscal Responsibility and Budget Management Act introduce the Effective Revenue Deficit, defined as revenue deficit minus grants for creation of capital assets to reduce consumptive revenue shortfalls and free space for capital spending, and a Medium Term Expenditure Framework that sets a three year rolling target for expenditure indicators to guide multi year budgeting and prioritisation.

FRBM amendment strengthens expenditure discipline by introducing Effective Revenue Deficit and Medium Term Expenditure Framework.
Amendments to the Fiscal Responsibility and Budget Management Act introduce a Medium Term Expenditure Framework and the concept of Effective Revenue Deficit with three year rolling expenditure targets; central subsidies will be capped and progressively reduced. Tax reforms prioritise enactment of the Direct Taxes Code, development of a model GST and GST network, and introduction of a General Anti Avoidance Rule to counter aggressive tax avoidance, alongside targeted deductions and sectoral incentives to promote investment and compliance.

Fiscal framework reforms introduce effective revenue deficit and medium term expenditure targets to prioritise public spending direction.
The Budget amends the fiscal framework by introducing Effective Revenue Deficit and a Medium Term Expenditure Framework with three year rolling expenditure targets, tightens subsidy ceilings, presents fiscal deficit and debt benchmarks, and reallocates plan and non plan expenditure to prioritise infrastructure and social sectors.

Industrial growth outlook signals need to boost business sentiment and investment to restore manufacturing momentum.
The Economic Survey projects below trend industrial growth for the current year due to weak business sentiment, reduced investment, moderated banking credit and sectoral bottlenecks. IIP slowed with contractions in mining, moderated manufacturing growth and negative capital goods performance, while basic and non durable goods fared better. The Survey notes a fall in manufacturing's share of gross capital formation and a marked deceleration of credit to industry. It recommends boosting business sentiment, removing short term bottlenecks, ensuring land and infrastructure for investment zones, strengthening sectoral linkages, encouraging higher value added manufacturing and promoting FDI to bridge saving investment gaps.

Infrastructure financing: attract big ticket long term investors and adopt innovative funding models to sustain infrastructure expansion.
The Survey emphasises reliance on public-sector projects and urges mobilisation of substantial private finance through public-private partnerships (PPP), innovative financing models, and attraction of long-term investors such as strategic investors, private equity, pension and sovereign funds. It highlights project delays, cost overruns and uneven credit flows, recommends strengthening domestic financial institutions and developing a long-term bond market, and supports a harmonised list of infrastructure sectors to guide agencies.

Gender budgeting expands targeted public allocations to strengthen women's access to education, health and economic services.
Government policies have advanced women's education, health and economic inclusion through the Sarva Shiksha Abhiyan, National Rural Health Mission and microfinance-linked Self Help Groups; gender budgeting was adopted to earmark and monitor allocations for women, and the National Mission for Empowerment of Women pilots a convergence model with facilitation centres to improve delivery of women-focused services.