Budget 2025 LIVE: Finance Minister Nirmala Sitharaman began her presentation of the Union Budget 2025 by standing outside the Ministry holding a tablet encased in a 'bahi khata' cover, continuing her unique tradition of modernizing India's Budget presentation. This marked her eighth consecutive Budget speech. Before delivering the speech, she met President Droupadi Murmu at Rashtrapati Bhavan, where the President formally approved the Budget.
In a move that continued to challenge colonial-era practices, Sitharaman replaced the traditional briefcase used by Finance Ministers with the 'bahi khata' in 2019, symbolising a more Indianized approach. By 2021, she made the Budget entirely paperless, using a tablet. This change broke with a centuries-old British tradition where the Chancellor of the Exchequer carried a briefcase to Parliament. India's first Finance Minister, R.K. Shanmukham Chetty, had followed this tradition in independent India.
The Union Budget 2025 aimed to accelerate economic growth, boost inclusive development, attract private investments, improve household sentiments, and enhance the spending power of India’s expanding middle class. Here is a brief update about all the announcements made in the Budget 2025 presentation:
Taxation and Income Tax Relief:
- No income tax payable for individuals earning up to ₹12 lakh (₹12.75 lakh for salaried individuals with standard deductions).
- Revised tax slabs and rates will benefit all taxpayers, especially the middle class, boosting consumption, savings, and investments.
Fiscal Deficit Projections:
- The fiscal deficit for FY25 is estimated at 4.8% of GDP, with a target of 4.4% for FY26.
- The government will borrow ₹11.54 lakh crore in FY25.
New Income Tax Bill:
A new, simplified Income Tax Bill will be introduced next week, which aims to replace the Income Tax Act of 1961 and simplify compliance.
Support for Exports:
Exemptions on Wet Blue leather and reduced taxes on Frozen Fish Paste (Surimi) to support exports.
Boosting Domestic Manufacturing:
Exemptions for critical minerals like cobalt powder and lithium-ion battery waste to support domestic manufacturing and value addition.
Healthcare and Education Initiatives:
- 10,000 additional seats in medical colleges, with 75,000 planned over the next five years.
- Atal Tinkering Labs will be set up in 50,000 government schools within five years.
- Day Care Cancer Centres will be established in district hospitals, with 200 centres planned for FY 2025-26.
Initiatives for Research and Innovation:
₹20,000 crore allocated for private-sector-driven research, and 10,000 fellowships under the PM Research Fellowship scheme over the next five years.
Support for Gig Workers and Urban Workers:
- New identity cards and registration for online platform workers under the e-Shram portal.
- Revamping of PM SVANidhi scheme with enhanced loans and UPI-linked credit cards for street vendors.
Strengthening Food Processing and Agriculture:
- Establishment of NIFTEM in Bihar to boost food processing in Eastern India.
- PM Dhan Dhaanya Krishi Yojana aimed to improve agricultural productivity in low-productivity districts.
Sustainability Measures:
Framework for sustainable fisheries development to boost India’s seafood exports and promote sustainable practices in the sector.
Markets Reaction:
Indian stock markets surged ahead of the Budget presentation, with the Sensex gaining 136.44 points and Nifty rising by 20.2 points.
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