Sun Feb 02 04:42:27 UTC 2025: ## Union Budget 2025: Cheers and Jeers as Tax Cuts Meet Criticism

**New Delhi** – The Union Budget 2025-26, presented by Finance Minister Nirmala Sitharaman, has sparked a mixed reaction across the political spectrum. While the government lauded the budget’s focus on inclusive growth and tax relief for the middle class, opposition parties leveled sharp criticism, highlighting perceived shortcomings.

A key feature of the budget is a significant increase in the income tax exemption limit to ₹12 lakh (approximately $14,800 USD) under the new tax regime, and ₹12.75 lakh for salaried individuals. This move, hailed by several Chief Ministers including Maharashtra’s Devendra Fadnavis and Assam’s Himanta Biswa Sarma as a “dream budget” for the middle class, aims to boost consumption and disposable income. Finance Secretary Tuhin Kanta Pandey explained this as a step to ensure individuals earning ₹1 lakh per month are not burdened by taxes. However, Congress leader Rahul Gandhi dismissed it as a mere “band-aid for bullet wounds,” arguing that it fails to address deeper economic issues like stagnant real wages and a complicated GST system. Former Finance Minister P. Chidambaram echoed this sentiment, stating the budget lacked new ideas and primarily targeted the middle class and Bihar voters ahead of state elections.

The budget also allocated funds towards agricultural development, including a new pulses mission and increased Kisan Credit Card limits. However, farmer groups criticized the budget for neglecting demands for legally guaranteed Minimum Support Prices (MSP) and farm loan waivers. The Samyukt Kisan Morcha (SKM) announced a protest against the perceived anti-farmer stance.

Significant allocations were also made for Bihar, including Greenfield airports and the Western Kosi Canal project, prompting accusations from opposition parties like the Congress and BJD of favoritism and neglect of other states. Union Ministers Jitan Ram Manjhi and Piyush Goyal defended the allocations, emphasizing the importance of developing the eastern and northeastern states.

The IT industry body Nasscom welcomed the government’s focus on innovation and ease of doing business, while the CPM criticized the budget for neglecting the challenges facing the poor and unemployed. Other key announcements included increased customs duty exemptions on several life-saving medicines, and provisions to ease regulations for charitable trusts.

The budget’s fiscal deficit target is set at 4.4% of GDP, a reduction from the previous year’s estimate. While the government stressed fiscal prudence, Chidambaram questioned the government’s capacity to achieve the ambitious targets set in the budget, especially in capital expenditure. The bond market reacted cautiously optimistic to the fiscal deficit and borrowing figures.

The budget’s reception remains sharply divided, with the ruling party celebrating its pro-people measures and the opposition highlighting its perceived failures to address critical economic challenges. The coming weeks will see further debate and analysis of the budget’s long-term impact on the Indian economy.

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