Sat Feb 01 12:26:59 UTC 2025: ## Modi Government Unveils Budget 2025: Tax Reliefs and Development Initiatives Dominate

**New Delhi, February 1, 2025** – Finance Minister Nirmala Sitharaman today presented the Union Budget 2025-26, the second full budget of the Modi 3.0 government. The budget, Sitharaman’s eighth, focuses on significant tax relief for the middle class and long-term infrastructural development.

A major highlight is the complete exemption from income tax for annual incomes up to ₹12 lakh. This measure, coupled with revised tax slabs (0% for income up to ₹4 lakh, 5% for ₹4-8 lakh, 10% for ₹8-12 lakh, and progressively higher rates thereafter), is projected to provide substantial financial relief to a large segment of the population. While the government anticipates a ₹1 lakh crore revenue loss, officials maintain the move will stimulate consumption and investment.

The budget also includes provisions for:

* **Boosting Manufacturing:** Initiatives include a national manufacturing mission to support small, medium, and large industries. However, concerns remain regarding the uneven playing field created by recent tariff cuts benefiting only certain manufacturers.
* **Strengthening Law Enforcement:** The Central Bureau of Investigation (CBI) received a budget increase to ₹1,071.05 crore.
* **Technological advancements:** A significant investment in Artificial Intelligence (AI) with the establishment of an AI excellence center and fellowships for tech research. The budget also focuses on expanding internet access in schools and promoting research through initiatives like Atal Labs.
* **Promoting Indigenous Industries:** Incentives for the domestic mobile phone and EV industries, including reductions in customs duty on lithium batteries. Increased FDI in the insurance sector to 100%.
* **Agriculture:** Increase in the loan limit for Kisan Credit Cards and other initiatives aimed at improving the income of farmers.
* **Simplified Tax System:** A new income tax bill will be introduced to simplify the current tax laws and reduce disputes.

Reactions to the budget have been mixed. While the government hailed it as a catalyst for growth and fulfillment of citizens’ aspirations, the opposition Congress criticized it as a mere “band-aid” solution to a struggling economy. Industry representatives expressed both appreciation for certain aspects, particularly tax breaks, and concerns about the uneven application of certain policies. Prime Minister Modi lauded the budget as a “force multiplier” that will boost savings, investment, and consumption.

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