HIGHLIGHTS | Union Budget 2025: No tax on incomes upto Rs 12 lakh, announces FM Nirmala Sitharaman in big relief for middle class
The Budget for April 2025 to March 2026 fiscal (FY26) proposed to raise foreign investment limit in insurance sector to 100 per cent from current 74 per cent and continued spending spree on infrastructure while raising allocations for social sectors as well as providing for measures for poor, youth, farmers and women.
Union Finance Minister Nirmala Sitharaman presents the Union Budget 2025-26
CHENNAI: Finance Minister Nirmala Sitharaman on Saturday announced significant income tax cuts for the middle class and unveiled a blueprint for next generation reforms as she looked to shore up a slowing economy amid global uncertainties.
Individuals earning up to Rs 12.75 lakh in a year will not have to pay any taxes after she raised the exemption threshold from Rs 7 lakh. She also altered tax slabs for people earning above this threshold to help save up to Rs 1.1 lakh in taxes for those with income up to Rs 25 lakh in a year. The tax cuts, which will cost the exchequer about Rs 1 lakh crore, will benefit 6.3 crore people, or more than 80 per cent of taxpayers, who earn up to Rs 12 lakh a year.
The Budget for April 2025 to March 2026 fiscal (FY26) proposed to raise foreign investment limit in insurance sector to 100 per cent from current 74 per cent and continued spending spree on infrastructure while raising allocations for social sectors as well as providing for measures for poor, youth, farmers and women.
All this she did while managing to stick to the fiscal consolidation roadmap, projecting a fiscal deficit of 4.4 per cent of the GDP in FY26 as against an estimated 4.8 per cent in the current year ending March 31.
Also announced were duty cuts on intermediaries and certain life saving drugs.
Read key highlights from the Budget speech here:
Live Updates
- 1 Feb 2025 11:54 AM IST
Higher education and skill training in spotlight
More announcements:
1. 50,000 Atal Tinkering Labs will be set up in the next five years to cultivate scientific temper in young minds
2. 5 national centres of excellence for skilling would also be set up with global expertise
3. Bharatiya Bhasha Pushtak scheme to provide a digital form of Indian language books for schools and higher education
4. Centre of Excellence in Artificial Intelligence for Education to be set up with outlay of Rs 500 crore
5. 10,000 additional seats to be added in medical colleges, hospitals in next one year
- 1 Feb 2025 11:50 AM IST
Infra development: FM announces Rs 1.5 lakh crore outlay for interest-free loans to states
--- Rs 1.5 lakh crore will be provided towards 50-year interest free loans to states, for infrastructure development
--- An asset monetisation plan will be launched for 2025-30 period to infuse Rs 10 lakh crore capital in new projects
--- Outlay of Rs 500 crore for setting up a centre of excellence in artificial intelligence for education
---- Budget outlay for Jal Jeevan Mission is being enhanced to achieve 100 per cent coverage - FM
Finance Minister Nirmala Sitharaman presents 2025-26 Budget in Parliament
- 1 Feb 2025 11:47 AM IST
Social security for gig workers with online platforms
- Government will arrange identity cards and registration on the e-Shram portal to assist 1 crore gig workers
- Gig workers will be provided health care facilities under the Pradhan Mantri Jan Arogya Yojana (PM-JAY)
-This measure is likely to assist nearly one crore workers, the FM said
- Additionally, PM SVANidhi scheme to be revamped with enhanced loans from banks, UPI linked credit cards with Rs. 30,000 limit, and capacity building support. PM Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi) is a Special Micro-Credit Facility for providing affordable loans to street vendors.
- 1 Feb 2025 11:44 AM IST
Rs 10,000 crore fund of funds scheme for startups announced
Finance Minister Nirmala Sitharaman on Saturday announced another round of Fund of Funds for Startups scheme with a corpus of Rs 10,000 crore to promote growth of budding entrepreneurs.
- An action plan for Startup India was unveiled on January 16, 2016.
- In the same year, Fund of Funds for Startups (FFS) scheme was launched with a corpus of Rs 10,000 crore, to meet the funding needs of startups.
- The total corpus of Rs 10,000 crore was envisaged to be provided over the 14th and 15th Finance Commission cycles based on progress of the scheme and availability of funds.
- It has not only made capital available for startups at early stage, seed stage and growth stage but also played a catalytic role in terms of facilitating raising domestic capital, reducing dependence on foreign capital and encouraging home- grown and new venture capital funds.
- 1 Feb 2025 11:39 AM IST
Tourism sector gets boost
1. Top 50 tourist destination sites in the country to be developed in partnership with states through a challenge mode
2. MUDRA loans for homestays
3. Special focus on destinations related to life and times of Lord Buddha
4. Medical Tourism and Heal in India to be promoted in partnership with private sector
- 1 Feb 2025 11:38 AM IST
UDAN airport development program modified
Govt to launch modified UDAN scheme to connect 120 destinations, help 4 crore additional passengers in next 10 years: FM
UDAN is a regional airport development program of the Government of India and part of the Regional Connectivity Scheme (RCS) of upgrading under-serviced air routes.
- 1 Feb 2025 11:34 AM IST
Budget focus on Bihar
Key announcements for Bihar where assembly polls are slated for later this year:
- Greenfield airports announced for Bihar
- Brownfield airport in Bihar
- Capacity of Patna Airport to be expanded
- Makhana Board to train farmers in Bihar, Rs 100 crore allocated
- National Institute of Food Technology, Entrepreneurship and Management to be set up in Bihar
- IIT-Patna's capacity to be increased
- 1 Feb 2025 11:34 AM IST
Good news for SC/ST women-run businesses
5 lakh SC/ST first-time women business entrepreneurs to benefit with a new scheme. Term loans of up to Rs 2 crore will be given. Lessons from Startup India will be incorporated - FM Sitharaman
