Union Budget 2025 Schemes

The Union Budget for 2025–26, presented by Finance Minister Nirmala Sitharaman, introduced several new schemes and initiatives to foster inclusive growth, enhance infrastructure, and promote innovation.

Various new changes have been made to the existing schemes. For Kerala PSC aspirants, you may expect 1 or 2 questions in the current affairs and GK section for the upcoming Kerala PSC exams.

Below is a comprehensive list of the key schemes announced in the Union Budget 2025.

Prime Minister Dhan-Dhaanya Krishi YojanaAim:Boost farm output, promote diverse crops, improve irrigation and storage, and enhance farmer livelihoods in low-yield areas.Target Group:1.7 crore farmers across 100 low-productivity districts.Key Features:Focus on low-output districts.Enhance farm productivity.Promotion of crop varietyImprove irrigation access.Strengthen storage.Progress tracking mechanismTechnology integration and state collaborationMission for Aatmanirbharta in Pulses

- Aim:Achieve self-sufficiency in the production of Urad, Tur, and Masoor pulses within six years. Reduce reliance on imports and increase the income of pulse farmers.

- Target Group:Pulse farmers nationwide. NAFED (National Agricultural Cooperative Marketing Federation of India) and NCCF (National Cooperative Consumers' Federation of India)1 are also key stakeholders for procurement.

- Six-Year Mission:A defined timeframe to achieve self-reliance.

- Focus on Specific Pulses:Targets Urad, Tur, and Masoor, which are key pulses consumed and imported in India.

- Procurement Assurance:NAFED and NCCF will procure these pulses from registered farmers, providing a guaranteed market.

- Emphasis on Climate-Resilient Seeds:Promotion of seeds that can withstand adverse weather conditions, ensuring stable production.

- Improved Protein Content:Focus on developing and promoting varieties with enhanced nutritional value.

- Support for Farmers:Likely to include measures such as providing quality seeds, promoting best agricultural practices, and offering extension services to pulse farmers.

- Reduction of Imports:A key outcome is to decrease India's dependence on imported pulses, saving foreign exchange.

- Income Enhancement:By ensuring procurement and potentially higher yields through improved practices, the mission aims to boost the income of pulse growers.

Rural Prosperity and Resilience ProgrammeAim:Address underemployment in agriculture. Create opportunities for rural women, young farmers, and small-scale farmers. Focus on skilling, investment, and technology in partnership with states. Achieve comprehensive rural prosperity and build resilience.Target Group:Primarily focuses on:Rural women.Young farmers.Small-scale farmers.Unemployed and underemployed individuals in the agricultural sector.State governments (as key implementation partners).Key Features:Multi-Sectoral Programme:Addresses various aspects of the rural economy beyond just agriculture.Focus on Underemployment:Directly tackles the issue of limited job opportunities and low productivity in the agricultural sector.Emphasis on Skilling:Will involve providing training and skill development programs relevant to rural livelihoods, potentially including non-farm activities.Investment Promotion:Aims to attract and facilitate investments in rural areas, likely across different sectors.Technology Integration:Will leverage technology to improve agricultural practices, create new opportunities, and enhance market access.State Partnership:Emphasizes collaboration and joint implementation with state governments, recognizing their crucial role in rural development.Comprehensive Approach:Seeks holistic rural development, encompassing economic, social, and environmental aspects.Resilience Building:Aims to equip rural communities to better withstand economic shocks and environmental challenges.Opportunity Creation:Focuses on generating diverse employment and income-generating opportunities beyond traditional farming.Enhanced Credit through Kisan Credit Cards (KCC)Aim:Expand affordable credit for farmers, dairy producers, and fishermen. To increase the credit limit under the Modified Interest Subvention Scheme for KCC.Target Group:Aiming to benefit approximately 7.7 crore individuals within these categories:Farmers holding Kisan Credit Cards.Dairy producers.Fishermen.Key Features:Increased Credit Limit:The credit limit under the Modified Interest Subvention Scheme for KCC has been raised from ₹3 lakh to ₹5 lakh.Focus on Affordability:The scheme continues to provide credit at subsidized interest rates through the interest subvention mechanism.Expanded Coverage:Includes farmers, as well as allied agricultural sectors like dairy and fisheries.Improved Access:The enhanced limit aims to provide more substantial financial support to meet the evolving needs of these beneficiaries.Streamlined Credit Delivery:KCC provides a single window for farmers' credit needs for crop production and other requirements.Support for Working Capital:The credit can be used for various purposes, including purchasing inputs, meeting operational expenses, and other agricultural activities.Government Support:The interest subvention is provided by the government to make the credit more affordable.

Kisan Credit Card (KCC) SchemeLaunched on:August 1998.Aim:To provide farmers with timely and adequate credit support for their agricultural and allied needs through a simplified and flexible credit delivery system.Target Group:All farmers (individuals/joint borrowers who are owner cultivators).Tenant farmers, oral lessees, and sharecroppers.Self-Help Groups (SHGs) or Joint Liability Groups (JLGs) of farmers.Farmers engaged in allied activities like animal husbandry and fisheries (extended in 2018-19).Key Features:Provides short-term credit for crop cultivation.Offers credit for post-harvest expenses.Includes produce marketing loans.Addresses the household consumption needs of farmers.Provides working capital for farm asset maintenance.Supports investment credit for agriculture and allied activities.Credit limit is need-based, considering the cropping pattern and scale of finance.Offers a revolving credit facility.Interest rates are subsidized by the government.Includes an ATM-cum-debit card for easy access to funds.Repayment schedules are aligned with crop harvesting cycles.Offers insurance coverage under PMFBY and personal accident insurance.Has been extended to cover the investment credit requirements of farmers for allied and non-farm activities.

- Mission for Cotton Productivity: A five-year initiative to promote sustainable farming practices, increase extra-long staple cotton production, and improve quality.

Jal Jeevan Mission (JJM)

Fund of Funds for Startups (2025)

Aim: To further support the expansion and development of startups.Target Group:Beneficiaries of the Funds: Early-stage and growth-stage startups.Intermediaries: SEBI-registered Alternative Investment Funds (AIFs) that invest in startups.Key Features:New Allocation:A fresh corpus of ₹10,000 crore.Focus on Expansion and Development:Emphasis on helping startups scale up.Building on Existing Success:Leverages the impact of the initial FFS.Leveraging Private Capital:Operates on a fund-of-funds model to encourage private investment.

Fund of Funds for Startups (2016)Launched on: June 2016.Aim: To catalyze venture capital and private equity investment in startups by providing capital to SEBI-registered Alternative Investment Funds (AIFs), which would then invest in early-stage and growth-stage startups.Target Group:Beneficiaries of the Funds: Early-stage and growth-stage startups across various sectors in India.Intermediaries: SEBI-registered Alternative Investment Funds (AIFs) that invest in startups.Key Features:Corpus:₹10,000 crore allocated by the Government of India.Managed by SIDBI:Small Industries Development Bank of India (SIDBI) manages the fund.Catalytic Role:Aims to encourage private investment in the startup ecosystem.Investment Mode:Provides capital to AIFs, which then invest in startups.Milestone-Based Releases:Funds are released to AIFs based on their investment in startups.Significant Impact:Has supported a large number of startups through its investments in various AIFs.The 2016 fund was more about getting the funding flowing to startups in general, while the 2025 fund seems to be more strategic, aiming to channel funds into specific high-growth areas to propel the next stage of India's startup evolution.

Aim:To support first-time entrepreneurs from the specified communities. The specific sectors are not explicitly detailed in the budget announcement, but they likely aim to encourage new ventures.Loan Amount: Provides term loans up to ₹2 crore over five years.Target Group: Specifically mentioned as targeting 5 lakh women, Scheduled Castes, and Scheduled Tribes, first-time entrepreneurs.Key Features:Aims to reach a larger number of beneficiaries (5 lakh over 5 years).Will include online capacity building for entrepreneurship and managerial skills.Offers a potentially higher loan amount (up to ₹2 crore) compared to the lower limit of Stand-Up India.Will incorporate lessons from the successful Stand-Up India Scheme, suggesting it will build upon the experiences and best practices of the existing program.

Credit Guarantee Fund EnhancementAim: To improve access to credit for MSMEs and startups.Target Group:Micro and Small Enterprises (MSMEs).Startups.Export-oriented MSMEs.Key Features:Increased Credit Guarantee Cover for MSMEs:Doubled from ₹5 crore to ₹10 crore, potentially unlocking an additional ₹1.5 lakh crore in credit over five years.Increased Credit Guarantee Cover for Startups:Increased from ₹10 crore to ₹20 crore.Reduced Guarantee Fee for Startups:Reduced to 1% for loans in 27 focus sectors.Enhanced Cover for Exporter MSMEs:Term loans up to ₹20 crore.Customized Credit Cards:₹5 lakh limit for micro-enterprises registered on the Udyam portal, with 10 lakh cards to be issued in the first year.MSME Definition Revision:The investment and turnover limits for MSME classification have been increased by 2.5 times and 2 times, respectively.

- Micro Enterprise Credit Cards:A ₹5 lakh credit facility for 10 lakh micro-enterprises, promoting financial inclusion and economic participation.

Urban Challenge FundAim: To encourage states to adopt innovative approaches for sustainable urbanization and the redevelopment of existing cities. Specifically, to implement proposals for:'Cities as Growth Hubs''Creative Redevelopment of Cities''Water and Sanitation'Target Group:State governments and urban local bodies (ULBs) across India that propose bankable projects aligned with the fund's objectives.Key Features:Significant Corpus:A total fund of ₹1 lakh crore has been earmarked for this initiative.Financial Assistance:The fund will finance up to 25% of the cost of bankable projects.Leveraging Other Funding Sources:A condition stipulates that at least 50% of the project cost must be funded through bonds, bank loans, and Public-Private Partnerships (PPPs), encouraging market-based financing.Focus Areas:Projects related to transforming cities into economic growth centers, creative urban regeneration, and improving water and sanitation infrastructure will be prioritized.Initial Allocation:An allocation of ₹10,000 crore has been proposed for the fiscal year 2025-26 to initiate projects under this fund.Incentivizing Innovation:The challenge fund mechanism encourages states and cities to develop innovative and sustainable solutions for urban development.Potential for Integrated Development:The focus on 'Cities as Growth Hubs' suggests that projects may encompass integrated development covering various aspects like transport, energy, and social infrastructure.Competitive Access:It's implied that states will need to present strong and viable proposals to access funding from this challenge fund.SWAMIH Fund 2This is the second iteration of the SWAMIH fund, with the first one launched earlier.Aim:Expedite the completion of another 1 lakh stressed housing units across the country. Provide relief to middle-income homebuyers who are stuck in delayed or stalled projects.Target Group:Stressed residential projects that meet specific criteria (likely similar to SWAMIH Fund I).Middle-income homebuyers who have invested in these stalled projects.Financial institutions and project developers are involved in these stressed assets.Key Features:Follow-up Fund:This is the second fund under the Special Window for Affordable and Mid-Income Housing (SWAMIH) initiative.Focus on Completion:Provides last-mile financing to ensure the completion of stuck housing projects.Targeted Beneficiaries:Specifically aims to help middle-income homebuyers who are facing hardships due to project delays.Significant Allocation:An allocation of ₹15,000 crore has been announced for SWAMIH Fund 2.Building on Success:Leverages the experience and successful model of the first SWAMIH fund, which has helped complete several stressed projects.Potential for Economic Revival:Completion of these projects can also have a positive impact on the real estate sector and the overall economy.Likely Government Backing:Similar to the first fund, SWAMIH Fund 2 is likely sponsored by the Government of India.Professional Management:The fund is expected to be managed by professional fund managers.

SWAMIH Fund (Fund 1)Launched on: November 6, 2019.Aim: Provide last-mile financing to stalled affordable and mid-income housing projects across India. Ensure completion of these projects and provide relief to homebuyers. Revive the real estate sector and unlock capital.Target Group:Stalled, Real Estate Regulatory Authority (RERA) registered residential development projects.Projects in the affordable and mid-income housing category.Projects that are net worth positive and require last-mile funding to complete construction.Homebuyers who have invested in these stalled projects.Key Features:Government-Backed:Sponsored by the Ministry of Finance, Government of India.Managed by SBI Ventures Ltd:A State Bank of India group company."Last Mile Funding":Provides the necessary funds to complete projects nearing completion but stuck due to financial constraints.Social Impact Fund:India's largest social impact fund, specifically for real estate.Addresses Trust Deficit:Aims to bridge the gap between homebuyers and developers by ensuring project completion.Lender of Last Resort:Considers projects with litigation issues, NPAs, and even developers with poor track records.Significant Corpus:Raised over ₹15,530 crore.Focus on Project Completion:Strict monitoring to ensure funds are used solely for project completion.Positive Impact:Has led to the completion and delivery of thousands of homes, unlocked significant liquidity, and boosted confidence in the real estate sector.

- Public-Private Partnership (PPP) in Infrastructure: Infrastructure-related ministries are to develop a 3-year pipeline of projects in PPP mode, with states encouraged to do the same.

- Maritime Development Fund: A ₹25,000 crore fund to support long-term financing for shipbuilding, ports, and logistics infrastructure.