Sun Feb 02 05:58:45 UTC 2025: ## Modi Government Unveils ₹50 Lakh Crore Budget 2025 with Major Tax Breaks and Sectoral Boosts

**New Delhi:** Finance Minister Nirmala Sitharaman presented the Union Budget 2025 on Saturday, marking her eighth budget speech. The budget, totaling over ₹50.65 lakh crore (approximately $615 billion USD), represents a significant increase from the previous year’s ₹47.16 lakh crore and includes substantial allocations across various sectors. Key highlights include significant tax benefits for the middle class, increased support for farmers and women entrepreneurs, and a substantial boost to the defense sector.

**Middle Class Relief:** The most significant announcement is the revision of income tax slabs, offering tax exemption for income up to ₹12 lakh annually. This move, coupled with a raised standard deduction of ₹75,000 for salaried individuals, could save taxpayers earning ₹12 lakh per year up to ₹80,000.

**Agriculture and Farmers:** The government increased the loan limit under the Kisan Credit Card (KCC) scheme from ₹3 lakh to ₹5 lakh, benefiting the 7.75 crore KCC holders. Further, the Dhan Dhanya Krishi Yojana will cover 100 low-productivity districts in its first phase, benefiting approximately 1.7 crore farmers.

**Empowering Women:** A new initiative will provide ₹2 crore term loans to 5 lakh women from Scheduled Castes and Scheduled Tribes, without collateral, to establish and expand small and medium businesses. This program includes digital training and marketing support.

**Gig Workers and MSME Support:** The budget includes provisions for providing identity cards to gig workers through the E-Shram portal, along with PM Jan Arogya Yojana health benefits. Furthermore, the credit guarantee cover for MSMEs has been increased from ₹5 crore to ₹10 crore.

**Other Key Initiatives:** The budget allocated ₹15,000 crore to establish SWAMIH Fund 2 to complete 40,000 housing projects. Tax deduction at source (TDS) limits for senior citizens were raised from ₹50,000 to ₹1 lakh. ₹10,000 crore will be allocated to support startups, including the issuance of special credit cards with a ₹5 lakh limit. The defense budget received a significant increase, totaling ₹6,81,210.27 crore, reflecting a commitment to ‘Aatmanirbhar Bharat’ (self-reliant India). Import duties were reduced on several key materials, including those used in the manufacturing of lithium-ion batteries, in line with the ‘Make in India’ initiative.

The budget is widely seen as a significant effort to stimulate economic growth and provide social welfare benefits across various segments of Indian society.

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