Union Budget 2025: Major tax relief for middle class, big boost for farmers, entrepreneurs

New Delhi, Feb 1: Union Finance Minister Nirmala Sitharaman presented her eighth consecutive Union Budget in the Lok Sabha, offering significant tax relief for the middle class and announcing key measures across various sectors.

One of the major highlights was the zero tax on income up to Rs 12.75 lac under the new tax regime for salaried individuals, which includes the standard deduction. Additionally, no income tax will be payable for incomes up to Rs 12 lac.

In a boost to agriculture, the government launched the PM Dhan Dhyan Krishi Yojana, covering 100 districts with low yields, benefiting 1.7 crore farmers. The interest subvention scheme for Kisan Credit Cards has also been enhanced from Rs 3 lac to Rs 5 lac. Furthermore, Bihar will get a dedicated Makhana Board to improve fox nut production and processing.

To promote entrepreneurship, the budget proposes a Rs 2-crore term loan for 5 lac first-time women, SC, and ST entrepreneurs. The PM SVANidhi scheme for street vendors will be revamped, offering enhanced loans and UPI-linked credit cards with a Rs 30,000 limit.

In the education sector, 50,000 Atal Tinkering Labs will be set up over the next five years to cultivate scientific temper among students. Additionally, the Bharatiya Bhasha Pushtak scheme will digitize Indian language books for schools and higher education.

Healthcare initiatives include adding 10,000 seats in medical colleges and hospitals by next year and setting up daycare cancer centres in all district hospitals within the next three years.

Infrastructure and tourism also received a boost, with the Modified UDAN scheme set to connect 120 destinations, benefiting 4 crore additional passengers over the next decade. The government will also develop 50 top tourist sites in collaboration with states and extend Mudra loans to homestay businesses.

For the gig economy, 1 crore gig workers will receive identity cards and registration on the e-Shram portal to ensure better assistance. Meanwhile, India Post will be transformed into a large public logistics organization, with 1.5 lac rural post offices set to play a key role in boosting the rural economy.

The government has also proposed a Rs 20,000-crore Nuclear Mission, which will involve private players in developing five indigenous small modular reactors.

On the fiscal front, the deficit for FY25 has been pegged at 4.8% of GDP, with a target of 4.4% for FY26.

With a mix of tax relief, infrastructure development, and support for key sectors, Budget 2025 aims to strengthen economic growth while addressing the needs of various sections of society.