Abstract

The current paper critically reviews the most significant announcements in presenting the "Union Budget (2025-26)" by Hon'ble Finance Minister Mrs. Nirmala Sitharaman, specifically from the viewpoint of their tax policy and economic development implications. It emphasizes how the government seeks to meet the fiscal requirements of diverse socio-economic groups, including the middle class and lower-income communities. By analysing changes in tax slab rates and implementing new tax policies, the research will determine the problems and advantages that these measures have for taxpayers and service sectors looking for relief and opportunities for growth. The paper also discusses how these fiscal policies are structured to spur economic activity, increase disposable income, and encourage investment in major sectors. It examines the likely effect of these changes on consumer expenditure, savings, and overall economic stability. The research also attempts to forecast future economic cycles and their probable implications for sustainable development and social well-being in India. Based on an examination of the allround approach adopted in the Union Budget, this study attempts to offer insights into how effective the proposed tax reforms are going to be and how they contribute towards creating a more inclusive and robust economy, leading to the prosperity of the nation.