Sat Feb 01 16:11:55 UTC 2025: ## Union Budget 2025: Tax Relief, Infrastructure Push, and Mixed Reactions

**New Delhi, India** – Finance Minister Nirmala Sitharaman presented the Union Budget 2025 on Saturday, unveiling a range of measures focused on tax simplification, infrastructure development, and social security. The budget, lauded by the ruling BJP as a boon for the middle class and Bihar, has drawn mixed reactions from opposition parties and various interest groups.

A key highlight is the significant increase in the income tax exemption limit to ₹12 lakh (approximately $14,800 USD), eliminating income tax for individuals earning up to this amount. This move, along with revised tax slabs, aims to boost disposable income and stimulate consumption. The Finance Secretary clarified that this was a progressive increase from previous years, reflecting a commitment to easing the tax burden on middle-class taxpayers.

The budget also allocated ₹2.52 lakh crore ($307 billion USD) to the Railways, maintaining the previous year’s level. Increased earnings are projected from both passenger and freight services. Other significant allocations include increased funding for the Poshan 2.0 scheme, raising the Kisan Credit Card loan limit to ₹5 lakh ($6,100 USD), and the launch of the Pradhan Mantri Dhan-Dhaanya Krishi Yojana aimed at boosting agricultural productivity. A new Makhana Development Board was announced for Bihar.

Furthermore, the budget proposed fully exempting 36 life-saving medicines from customs duty and introduced a Nuclear Energy Mission targeting 100 GW of nuclear power by 2047. The government also announced plans to raise the FDI limit in the insurance sector to 100% and simplify tax laws. A new bill to simplify the direct tax code is expected to be introduced next week.

However, the budget has faced criticism. Opposition parties like the Congress and TMC criticized the lack of attention to other pressing economic issues and accused the government of focusing on politically strategic states like Bihar ahead of upcoming elections. Farmer groups slammed the budget for ignoring demands for a legally guaranteed Minimum Support Price (MSP) and farm loan waivers. The Telangana Gig and Platform Workers Union welcomed the social security scheme for gig workers but urged for swift implementation. Meanwhile, some states, such as Tamil Nadu, expressed disappointment over the lack of attention to their specific development needs. Despite concerns, the Finance Minister emphasized fiscal prudence and highlighted that capital expenditure remained unchanged.

The budget’s reception remains deeply divided, with ongoing debates surrounding its effectiveness in addressing India’s complex economic challenges. The coming weeks will likely see further discussion and analysis of its long-term impact.

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