BUDGET 2025: 4 engines will give power to Modi government’s visit to ‘developed India’, middle class in front seat

Budget 2025: The second budget of the third term of the Modi government ended the wait for the common people for a long time. Finance Minister Nirmala Sitharaman (NIRMALA) spoke of installing four engines in a growth car for a visit to ‘developed India’. The way he showered reliefs on taxpayers, it is clear that the middle class has been given a place in the front seat in this journey. The Finance Minister has made agriculture, SSMEs, investment and exports a gentle growth engine. Along with this, to give a new shape to the economy, a six-year roadmap was given in the budget, in which a target has been reduced to 47.5-52 per cent by financial year 2031.

New income tax bill will come, relief to taxpayers

Finance Minister Nirmala Sitharaman said in her budget speech that the government will bring a new income tax bill next week. This is a major initiative towards direct tax reform. With the provision of zero tax on annual income of up to Rs 12 lakh in New Tax Regim, he clearly indicated that the government wants to bring more and more taxpayers to the new regime.

The Finance Minister said that under the New Tax Resetam, no income tax will have to be paid on income of up to Rs 12 lakh (average income of Rs 1 lakh per month except capital gains). If you add a standard deduction of 75 thousand rupees to this, then the income tax up to Rs 12.75 lakh will be out of the boundary of liability.
The government believes that this new tax system will significantly reduce the tax of the middle class and they will have more money available to promote domestic use, savings and investment. However, the Finance Minister said that the government will not get a revenue of about Rs 1 lakh crore from direct tax from this system.

In addition, the Finance Minister has rationalized the Tax Deduction at Source (TDS)/Tax Collection at Source (TCS). For example, the reduction limit on interest for senior citizens was increased from Rs 50,000 to Rs 1 lakh. The annual limit for TDS on rent was increased from Rs 2.40 lakh to Rs 6 lakh. Provision for high tax deduction was provided to implement only non-pain cases.

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How to work 4 engines of growth

Finance Minister Nirmala Sitharaman announced to launch the ‘Prime Minister Dhan-Dhanya Krishi Yojana’ with the participation of the states in the budget. It will include 100 districts with low productivity, low yield and average loan criteria. The government has expressed the possibility of helping 1.7 crore farmers from this.

For prosperity and development in rural India, a wide multi-sector program called ‘Building Rural Prosperity and Resilience’ will be launched. This will solve low employment in agriculture through skill, investment, technology and will bring new life to the rural economy.

Through the budget, the government presented an important blueprint for self -sufficiency in pulses from the government. The Finance Minister said that with focus on toor, urad and lentils, it will start 6-sight “Self-reliance in pulses”. Central agencies Nafed and NCCF will buy these pulses from farmers during the next 4 years.

In addition, the government will be launched by the government, which will be aimed at strengthening research ecosystem, spreading targeted growth and high -yielding seeds and providing more than 100 varieties of seeds at com -level. In an important announcement, the Finance Minister includes increasing the loan limit from Rs 3 lakh to Rs 5 lakh through Kisan Credit Card.

The Finance Minister has described MSME as the second engine of development. Many important announcements were made to give boost to this sector. Jasac will be increased to 2.5 and 2 times the investment and business limit for classification of all MSMEs. For micro enterprises registered on the enterprise portal, 10 lakh customized credit cards with a limit of up to Rs 5 lakh in the first year will be issued. A new fund of Rs 10,000 crore will be set up for the startup.

Announcement of focus product scheme to provide business of 4 lakh crores to 22 lakh persons to increase the productivity, quality and competitiveness of India’s footwear and leather sector and make it easier to export more than 1.1 lakh crores.

In the budget speech, the Finance Minister said that a plan has been made to make India a ‘global toy center’. The National Manufacturing Mission will be established by incorporating small, medium and large industries for the purpose of pursuing ‘Make in India’.

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Finance Minister Nirmala Sitharaman has described the investment as the third engine of the surprise growth. The government has insisted on investing in people. For example, in the next 5 years, 50,000 Atal Tinkering laboratories will be set up in government schools. Broadband connectivity for government secondary schools and primary health centers (PHC) will be ensured. Broadband connectivity will be made available to all government secondary schools and primary health centers in rural areas under the Bharat Net Project.

The Finance Minister said in the savings speech that the Indian Language Book Plan was announced to provide digital books in Indian languages ​​for school and higher education. Youth will be given necessary skills for “Make for India Make for the World” manufacturing. For this, 5 National Skill Excellence Center will be established.

The Finance Minister announced to create additional infra in 5 IITs launched after 2014 to make education smooth for 6,500 and students. In addition, an excellence centers related to artificial intelligence (AI) for education from Rs 500 crore will be installed. Apart from this, the government has announced to increase 100,000 additional seats next year towards the target of increasing 75000 in medical colleges and hospitals in the next 5 years.

The Finance Minister in government private partnership regarding investment in the economy also talked about encouraging states to create a ministry of infrastructure for 3 -year pipeline projects. The states have proposed an allocation of Rs 1.5 lakh crore for 50 years interest -free loan.

The Finance Minister has described the nuclear power mission as important for developed India. He proposed to amend the Atomic Energy Act and the Civil Liability Atomic Damage Act. Announced to mission a nuclear power for research and development of small modular reactors (SMR) with an allocation of 20 thousand crore rupees.

Apart from this, a revised flight scheme was announced to establish the sea development fund with an allocation of 25 thousand crore rupees and to increase regional connectivity to bring 120 new destinations and 4 crore passengers in the next 10 years.
The Finance Minister has announced a fund of Rs 1 lakh with the contribution of banks and private investors and to make a fund of Rs 15,000 crore with the aim of speeding up the work of completing the work of completing the residential units. The government’s focus is also on innovation.

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The Finance Minister has made exports a fourteen engine of inferior development. The Ministry of Commerce MSME and the Ministry of Finance have proposed to set up an export promotion mission jointly run. Under this, targets will be set for different regions and ministries.

In addition, the government is going to set up India Tradenet (BTN) for international trade as a joint platform for trade documentation and financeing solution. A national framework will be prepared as a guide to the states to encourage global capacity centers in raw tier-2 cities.

What is the account of the government

Finance Minister Nirmala Sitharaman made a budget estimate of the budget 2025-26. Apart from the borrowing, he has estimated a total of Rs 34.96 lakh crore and an estimate of Rs 50.65 lakh crore. The Finance Minister said in the budget speech that during the financial year 2026, the net tax available can be Rs 28.37 lakh crore. At the same time, fiscal deficit is estimated to be 4.4 percent of GDP. In the budget speech, the Finance Minister has proposed a total market borrowing of Rs 14.82 lakh crore. Whereas, in FY26, the Capital Expenditure (CAPEX) will be 3.1 percent of GDP i.e. Rs 11.21 lakh crore.

Finance Minister Nirmala Sitharaman put a new path with the current practice of setting the goal of fiscal deficit in her financial year 26 budget, as a fiscal anchor with a new path with a date to GDP ratio. He has placed a 6-year plan to reduce the date to GDP ratio from 57.1 percent to 47.5-52 percent in FY25 by FY2031. For FY26, the target of date to GDP ratio in the budget is set at 56.1 percent.

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