ECONOMY
Budget showers big incentives on middle class, Income Tax rebate raised to Rs 12 lakh
- IBJ Bureau
- Feb 02, 2025
Finance Minister Nirmala Sitharaman presented the Union Budget 2025-26 on Saturday, outlining roadmap for economic growth, social welfare and technological advancement.
With a strong push for agriculture, infrastructure, tax relief and digital transformation, the Budget also stressed on defence modernisation, cybersecurity and space exploration.
Total receipts for FY26 are estimated at Rs 50.65 lakh crore, with revenue receipts projected at Rs 34.20 lakh crore. Capital receipts stand at Rs 16.44 lakh crore, slightly higher than FY25’s revised estimates.
Total expenditure is pegged at Rs 50.65 lakh crore, marking an increase from FY25’s revised figure of Rs 47.16 lakh crore. Meanwhile, the fiscal deficit is estimated at Rs 15.68 lakh crore, maintaining fiscal prudence in line with that of the previous years.
In a big boost to the middle class, Ms Sitharaman announced that there would be no income tax payable for incomes up to Rs 12 lakh, and Rs 12.75 lakh for salaried taxpayers (including standard deduction) in the new tax regime.
The Budget also proposed to increase the FDI limit in the insurance sector from 74 to 100 per cent to attract more funds. There are also safeguards to ensure that all premiums collected in India are reinvested locally.
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