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:
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IITs and IISCs in focus
- Additional infrastructure will be created in the five IITs started after 2014. 6,500 more students to be accommodated - FM
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Internet for rural govt schools, cancer centres in district hospitals and more
Three key announcements:
1. Broadband connectivity for govt secondary schools in rural areas
2. Expansion of medical education: 75,000 seats to be added in next five years
3. Daycare cancer centres in all district hospitals over the next three years. 200 of these will be established in 2025-26
- 1 Feb 2025 11:18 AM IST
Schemes and policies for MSME sector
FM Sitharaman announces benefits for Micro, Small and Medium Enterprises:
- Credit guarantee cover to be increased
- Investment limit for MSME classification to be increased by 2.5 times
- Turnover limits for MSME classification to be doubled
- Focus Product Scheme for Footwear & Leather Sectors; expected to facilitate employment for 22 lakh persons, turnover of Rs 4 lakh crore and exports of over Rs 1.1 lakh crore
- Scheme to Make India A Global Toys Hub to create high-quality toys representing the 'Made in India' brand
- Govt to introduce customised credit cards with Rs 5 lakh limit for micro-enterprises
- 1 Feb 2025 11:11 AM IST
Key agriculture schemes presented
FM Sitharaman focuses on agriculture sector in the first part of her Budget speech:
--- PM Dhan Dhanya Krishi Yojna announced in partnership with states; expected to benefit 1.75 crore farmers
---- Farmers Credit Card limit to be raised from Rs 3 lakh to Rs 5 lakh
---- Government will launch rural prosperity, and resilience programme focusing on youth, women and farmers
---- Government will also roll out a 6-year programme for Atmanirbharta in pulses with a special focus on tur, urad, and masoor
---- A comprehensive programme for raising vegetables, fruit production, and providing remunerative prices will also be launched
- 1 Feb 2025 11:11 AM IST
Union Finance Minister Nirmala Sitharaman says, "In this Budget, the proposed development measures span 10 broad areas, focussing on the poor, youth, farmers and women."
- 1 Feb 2025 11:10 AM IST
Oppn stages walkout
The Opposition has walked out of the Lok Sabha as FM Sitharaman begins Budget presentation
- 1 Feb 2025 11:05 AM IST
A country is just not its soil, it is also its people, FM Sitharaman says, quoting Telugu poet Gurjada Apparao's lines to underline the focus of the Budget
- 1 Feb 2025 10:48 AM IST
Economic Survey rightly focuses on AI, more infra spending: Experts
Economic Survey presented in Parliament rightly focuses on artificial intelligence, innovation and higher infrastructure expenditure with a pitch for private sector participation, according to experts.
1. Debasish Mishra, Partner and Chief Growth Officer, Deloitte South Asia, said the survey focuses on job creation, innovation, giving a big thrust to manufacturing, stepping up on infrastructure expenditure with a pitch for private sector participation in joining hands with the government to achieve the Viksit Bharat target.
"The focus on the adoption of artificial intelligence in India's services sector is much-needed. The survey gives a clear roadmap about the country's significant role in the future global supply chain for energy transition technologies," Mishra added.
2. Yuji Kato, Director and CEO, Krisumi Corporation, said India's remarkable economic trajectory has positioned it as a key player in the global business landscape. Over the years, progressive reforms and policy shifts -- such as digitisation, tax restructuring, and FDI liberalisation -- have enhanced the ease of doing business, attracting multinational corporations to invest and expand in the country.
"These initiatives have laid a strong foundation, but the next phase of growth demands deeper structural reforms to unlock India's full potential," Kato said.
3. Ranen Banerjee, Partner and Leader Economic Advisory, PwC India, said the document summarises the challenges facing the Indian economy, with more headwinds than tailwinds listed.
"It may be challenging to achieve the projected growth rate of 6.36.8 per cent, given that growth in the fast lane is predicated on difficult deregulation and reforms at the grass-roots level," he said.
(Source: PTI)
