Sun Feb 02 11:51:53 IST 2025: ## Modi Government Unveils Generous Budget 2025: Tax Breaks, Farmer Relief, and Boost for MSMEs

**New Delhi** – Finance Minister Nirmala Sitharaman presented the Union Budget 2025 on Saturday, a ₹50.65 lakh crore (over $615 billion USD) package offering significant benefits across various sectors. This marks her eighth budget presentation and the first full budget of the Modi government’s third term. The budget surpasses the previous year’s ₹47.16 lakh crore allocation.

Key highlights of the budget include:

* **Tax Relief for Middle Class:** A significant change involves increasing the tax-free income threshold to ₹12 lakh annually, benefiting individuals earning up to that amount. This measure, coupled with a raised standard deduction of ₹75,000, could save taxpayers up to ₹80,000 per year.

* **Farmers’ Boost:** The loan limit under the Kisan Credit Card (KCC) scheme has been increased from ₹3 lakh to ₹5 lakh. Furthermore, the Dhan Dhanya Yojna aims to cover 100 low-productivity districts in its first phase, benefiting an estimated 1.7 crore farmers.

* **Empowering Women:** A dedicated ₹2 crore loan facility, offered without collateral, will be made available to 5 lakh women (from SC/ST communities) for five years, promoting entrepreneurship and providing support with digital training and market access.

* **Gig Workers Recognized:** The government will provide identity cards to gig workers through registration on the E-Shram portal, extending benefits like PM Jan Arogya Yojana (health insurance) to an estimated 1 crore gig workers.

* **Housing Push:** The SWAMIH scheme aims to complete 40,000 housing projects in 2025, with the establishment of SWAMIH Fund 2 allocating ₹15,000 crore to further the initiative.

* **Senior Citizen Relief:** The tax deduction at source (TDS) limit for senior citizens has been raised from ₹50,000 to ₹1 lakh annually on interest income from bank deposits or FDs.

* **Startup Support:** ₹10,000 crore will be allocated to fund startups, complemented by special credit cards with a ₹5 lakh limit and a credit guarantee cover of ₹20 crore. One million credit cards are expected to be issued in the first year.

* **Lithium-Ion Battery Focus:** Import duties on cobalt powder, lithium-ion battery scrap, and other key minerals will be waived to boost domestic manufacturing of electric vehicle batteries, strengthening the ‘Make in India’ initiative. The National Manufacturing Mission will also receive further support.

* **MSME Sector Enhancement:** The credit guarantee cover for MSMEs will increase from ₹5 crore to ₹10 crore. This sector, employing 7.5 crore people, contributes significantly to India’s economic growth.

* **Defense Sector Investment:** A substantial ₹6,81,210.27 crore budget has been allocated to the defense ministry, a 9.53% increase from the previous year, reflecting a commitment to a self-reliant armed forces. A significant portion will be dedicated to capital expenditure.

The budget is seen as a significant effort to stimulate economic growth while addressing the needs of diverse population segments. The long-term effects of these initiatives remain to be seen.

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