Union Budget 2025 Highlights: PM Modi lauds 'People's Budget', calls it a force multiplier

Thank you for following our live coverage of Budget 2025; stay with us for detailed reports and expert analysis in the coming hours.

Union Finance Minister Nirmala Sitharaman on Saturday reaffirmed the Modi government's commitment to addressing public concerns, emphasizing the swift rollout of income tax simplification measures. She announced that a new Income Tax Bill will be introduced in Parliament next week, aiming to streamline tax compliance and enhance ease of filing for taxpayers.

Bihar Chief Minister Nitish Kumar on Saturday lauded the Union Budget 2025, calling it “progressive and futuristic.” He said that the budget would play a crucial role in accelerating Bihar’s growth, particularly with key initiatives tailored to the state’s needs.

Union Home Minister Amit Shah praised Budget 2025, highlighting tax exemptions for the middle class up to Rs 12 lakh. Click here to know more!

In a major move for the middle class, Union Finance Minister Nirmala Sitharaman's Budget 2025 introduces significant changes to income tax provisions. The tax-free income threshold has been raised to Rs 12 lakh, offering substantial relief to salaried individuals. Additionally, salaried taxpayers will benefit from an additional standard deduction of Rs 75,000, which increases their tax-free income limit to Rs 12.75 lakh.

In a major push for the tourism sector, Union Finance Minister Nirmala Sitharaman revealed plans to extend Mudra loans to homestays, making travel experiences more accessible and boosting local economies. Read here to know more

"This Budget will increase savings, increase investment, increase consumption and will also push forward growth. I congratulate Finance Minister Nirmala Sitharaman and her entire team for presenting people's Budget," said PM Narendra Modi.

Finance Minister Nirmala Sitharaman announced significant changes to income tax slabs, introducing a new structure that will reduce taxes for the middle class and boost household consumption, savings, and investment. The 'nil tax' slab will now apply up to Rs 12 lakh (Rs 12.75 lakh for salaried taxpayers with a standard deduction of Rs 75,000).

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Finance Minister Nirmala Sitharaman announced that the government will increase the Tax Collected at Source (TCS) threshold on remittances under the RBI's Liberalised Remittance Scheme (LRS) from Rs 7 lakh to Rs 10 lakh.

Key updates on TDS (Tax Deducted at Source) from Union Budget 2025 include:

• Rationalizing TDS rates by reducing the number of rates and thresholds for deduction.
• Increasing threshold amounts for better clarity and uniformity.
• Doubling the limit for tax deduction on interest for senior citizens from Rs 50,000 to Rs 1,00,000.
• Raising the annual limit for TDS on rent from Rs 2.40 lakh to Rs 6 lakh, benefiting small taxpayers receiving smaller payments.
• Increasing the threshold to collect Tax Collected at Source (TCS) on remittances under the RBI's Liberalised Remittance Scheme (LRS) from Rs 7 lakh to Rs 10 lakh.

The Union Budget 2025 introduces the Rural Prosperity and Resilience Programme aimed at:

• Creating opportunities in rural areas, making migration an option, not a necessity.
• Catalyzing enterprise development, employment, and financial independence for rural women.
• Accelerating the creation of new employment and businesses for young farmers and rural youth.

Finance Minister Nirmala Sitharaman announced that a new Income Tax Bill will be introduced next week. During her Union Budget 2025-26 presentation in Parliament, she highlighted that the bill will be based on the Direct Tax Code (DTC), aiming to replace the Income Tax Act of 1961 and simplify tax compliance for both individuals and businesses.

The government is set to simplify and streamline the customs tariff structure, aiming to address duty inversion and promote domestic manufacturing, value addition, and exports. This rationalisation is part of a broader review of the customs rate structure, initially outlined in the July 2024 Budget.

Key announcements for street vendors and online/urban workers:

• Gig workers on online platforms will receive identity cards and registration on the e-Shram portal.
• A new scheme for socio-economic upliftment of urban workers will be implemented.
• The PM SVANidhi scheme will be revamped, offering enhanced loans from banks, UPI-linked credit cards with a ₹30,000 limit, and capacity building support.

Finance Minister Nirmala Sitharaman announced key initiatives to strengthen India's education and healthcare sectors:

• 50,000 Atal Tinkering Labs to be established in government schools over the next five years to foster innovation.
• Bharatiya Bhasha Pustak Scheme to provide digital-format Indian language books for school and higher education.
• Daycare Cancer Centres to be set up in all district hospitals within three years, with 200 centres operational in FY 2025-26.

Finance Minister Nirmala Sitharaman, while presenting the Union Budget 2025-26, said additional infrastructure in 5 IITs set up after 2014. Focus will also be on IIT Patna expansion.

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Finance Minister Nirmala Sitharaman announced a national action plan to position India as a global toy manufacturing hub. The initiative will focus on developing clusters, enhancing skills, and strengthening the manufacturing ecosystem to produce high-quality, innovative, and sustainable toys under the 'Made in India' brand.

The Finance Minister announced a modified UDAAN Scheme, expanding regional air connectivity with 120 new destinations and targeting 4 crore additional passengers. This initiative aims to make air travel more accessible and boost economic growth in emerging aviation hubs.

The Finance Minister outlined crucial reforms to strengthen electricity distribution and transmission. States will receive incentives to improve distribution networks and boost intrastate transmission capacity. To aid implementation, an additional borrowing allowance of 0.5% of GSDP will be granted, contingent on progress in the sector.

Finance Minister Nirmala Sitharaman presented the Union Budget 2025-26, emphasizing economic growth, inclusive development, and household empowerment. Read here to know more!

The government will establish daycare cancer centres in all district hospitals over the next three years to improve cancer care accessibility, with 200 centres set to open in FY 2025-26. Additionally, efforts to strengthen urban livelihoods will continue, focusing on economic stability and employment opportunities for the urban poor and vulnerable groups.

The government will establish Atal Tinkering Labs in 50,000 government schools over the next five years to foster curiosity, innovation, and scientific thinking among students. Additionally, broadband connectivity will be expanded to all government secondary and primary schools, enhancing access to digital learning resources.

Finance Minister Nirmala Sitharaman announced targeted policy and facilitation measures to enhance the productivity, quality, and competitiveness of India's footwear and leather sector. A focused products scheme will support design capacity, component manufacturing, and machinery for non-leather footwear while also strengthening the leather footwear industry.

Finance Minister Nirmala Sitharaman announced the establishment of a Makhana Board in Bihar, highlighting it as a special opportunity for the state. The board will focus on improving production, processing, value addition, and marketing of Makhana, unlocking its growth potential and strengthening Bihar’s agricultural economy.

FM announces PM Dhan Dhyan Krishi Yojana, covering 100 districts with low yields, modern crop intensity and below average credit parameters. Read here to know more!

Finance Minister Nirmala Sitharaman has announced that the Union Budget 2025 will focus on reforms across six critical domains: taxation, urban development, mining, the financial sector, power, and regulatory reforms. These sectors are expected to drive growth, improve efficiency, and create a more robust economic framework for India in the coming years.

Finance Minister Nirmala Sitharaman highlighted a comprehensive program aimed at improving the nation’s health, focusing on vegetables and fruits. With rising awareness about nutritional needs, the consumption of nutritious food has increased, driven by higher income levels.

Finance Minister Nirmala Sitharaman emphasized that India’s economy remains the fastest-growing among all major global economies. Reflecting on the nation’s development over the past decade and the structural reforms that have gained global recognition, she noted that confidence in India’s potential has increased. Looking ahead, the FM highlighted the next five years as a unique opportunity to realize ‘Sabka Vikas,’ aiming for balanced growth across all regions of the country.

Union Finance Minister Nirmala Sitharaman, in her address to Parliament, stressed that the Union Budget 2025-26 is focused on accelerating India’s growth trajectory. "This budget is dedicated to accelerating growth, driven by our aspirations for a 'Viksit Bharat.' Under the visionary leadership of Prime Minister Modi, we aim to unlock India's potential," she said, adding that the Indian economy continues to be the fastest growing among major global economies.

India's foreign exchange reserves remain strong, covering 90% of external debt and nearly 11 months of imports, as highlighted in the latest Economic Survey. The country continues to hold a position among the top four largest foreign exchange reserves holders globally.

Chartered Accountant AK Sabat expressed optimism regarding the Union Budget 2025, predicting that this year's budget will be extraordinary. He believes it will surpass the impact of the 1991 and 1997 budgets, which were widely regarded as dream budgets. Read here to know more!

Prime Minister Narendra Modi has arrived at Parliament ahead of the Union Budget presentation. Finance Minister Nirmala Sitharaman is set to present her record eighth consecutive Budget in the Lok Sabha, which will highlight the government's fiscal policies, revenue and expenditure proposals, taxation reforms, and other key announcements.

Railway-related stocks experienced a notable surge, with some seeing gains of up to 6.6% on the BSE. Investors are hopeful that the upcoming Budget will include a significant increase in capital expenditure for the railway sector, driving market optimism.

India Budget 2025 Live: Cabinet approves Budget proposal ahead of Union Budget 2025 presentation

Union Finance Minister Nirmala Sitharaman made a cultural statement at Parliament on Saturday, presenting Union Budget 2025 in a saree featuring intricate Madhubani art. The saree, crafted by Padma awardee Dulari Devi, added a touch of traditional Indian artistry to the occasion.