Sun Feb 02 03:32:44 IST 2025: ## India’s Union Budget 2025: Tax Relief and Economic Boost Dominate

**New Delhi** – Finance Minister Nirmala Sitharaman presented her eighth consecutive Union Budget on Saturday, a landmark achievement, unveiling a package aimed at bolstering India’s middle class and driving economic growth. The budget’s centerpiece is a significant income tax reduction: zero tax will be levied on incomes up to ₹12 lakh under the new tax regime, a move lauded by Prime Minister Narendra Modi as a “people’s budget” designed to benefit citizens directly.

The new, simplified income tax bill will be introduced next week. This substantial tax relief is expected to boost household consumption, savings, and investment. Economists have praised the budget’s fiscal strategy, describing it as “fiscal wizardry” and “the need of the hour.”

Beyond tax cuts, the budget includes several key initiatives:

* **MSME Support:** New classification criteria for Micro, Small, and Medium Enterprises (MSMEs) will be implemented, aiming to encourage growth and job creation.
* **Enhanced Regional Connectivity:** A modified “Udaan” scheme will expand regional air connectivity to 120 new destinations, carrying 4 crore passengers over the next decade. This includes support for helipads and smaller airports in remote areas. Greenfield airports are also planned for Bihar.
* **Healthcare Expansion:** 75,000 additional medical seats will be added over the next five years, starting with 10,000 in the coming year.
* **Agriculture Boost:** A six-year mission to promote self-reliance (“aatmanirbharta”) in pulses will focus on improving seed quality and productivity.
* **Entrepreneurial Support:** A new scheme will provide term loans up to ₹2 crore for 5 lakh first-time entrepreneurs, including women and members of Scheduled Castes and Scheduled Tribes.
* **Tourism Development:** The government will partner with states to develop 50 key tourist destinations.

While the budget received widespread praise from government officials and some industry leaders, criticism emerged from opposition parties and certain sectors. The Congress party criticized the budget for failing to address crucial economic challenges, while some child rights activists expressed concern over minimal increases in child-focused spending. Similarly, representatives from Kerala and Himachal Pradesh voiced disappointment over the perceived lack of attention to their states’ specific needs. The auto industry and healthcare sectors, however, largely welcomed the budget’s focus on growth and infrastructure development. The budget allocated ₹20,000 crore for a fund promoting private sector innovation in science and technology. A significant increase in allocation to the CRPF was also noted.

The budget’s long-term impact remains to be seen, but the significant tax relief for the middle class and the emphasis on infrastructure development and regional connectivity signal a clear direction for the Indian economy in the coming fiscal year.

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