Sat Feb 01 18:48:53 IST 2025: ## Union Budget 2025: Tax Relief and Focus on Growth Spark Mixed Reactions

**New Delhi** – Finance Minister Nirmala Sitharaman presented the Union Budget 2025 on Saturday, unveiling a series of measures aimed at boosting economic growth and providing tax relief to the middle class. The budget, however, has received a mixed response, with the opposition criticizing its lack of focus on broader economic challenges.

A key highlight of the budget is the significant increase in the income tax rebate limit. Individuals earning up to ₹12 lakh annually will now pay no income tax, up from ₹7 lakh previously. This move, along with revised tax slabs, is intended to boost disposable income and stimulate consumption. The Finance Minister also announced a new income tax bill, set to be introduced next week.

Further relief was offered to patients suffering from chronic diseases. Customs duty will be fully exempted on 36 life-saving drugs used to treat cancer, rare diseases, and other severe conditions. An additional six medicines will receive a 5% concessional duty. These exemptions also extend to bulk drugs used in their manufacture.

The budget also includes provisions for agricultural development, with increased credit limits for farmers under the Kisan Credit Card scheme and the creation of a Makhana Development Board in Bihar. Significant investment in infrastructure is also planned, although the Congress party expressed doubt about the government’s ability to meet its capital expenditure targets.

Other key initiatives include:

* A Nuclear Energy Mission aiming for 100 GW of nuclear power by 2047, involving private sector participation.
* Increased FDI limits in the insurance sector to 100%, conditional on premium reinvestment in India.
* Simplification of tax laws and the decriminalization of over 100 offences under the Jan Vishwas Bill 2.0.
* A focus on sustainable fisheries, boosting seafood exports.

The budget’s emphasis on the middle class and Bihar, ahead of upcoming state elections, has drawn criticism from the opposition. The Congress party accused the government of lacking new ideas and neglecting the concerns of other states and sectors, while describing the budget as a “band-aid for bullet wounds.” Other opposition parties echoed these sentiments, highlighting a lack of focus on issues such as inflation, poverty, and unemployment.

In contrast, the ruling party and several state chief ministers praised the budget, hailing it as inclusive and forward-looking. They emphasized its potential to drive economic growth and benefit various sections of society, particularly the middle class and farmers. The Prime Minister lauded the budget as a “force multiplier” for growth and a milestone for India’s development.

The coming weeks will see further debate and analysis of the budget’s provisions and their long-term impact on the Indian economy.

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