New Delhi [India], February 2 : The Union Budget 2024-25, presented by Union Finance Minister Nirmala Sitharaman in Parliament on Saturday, provided major relief to the salaried class with no income tax on an average monthly income of up to Rs one lakh to boost household savings and consumption with the government also giving thrust to four engines of development - agriculture, MSMEs, investment and exports.
The Finance Minister's announcement on tax relief means that the salaried class will pay nil income tax up to Rs 12.75 lakh. Opposition parties slammed the Budget, saying it was silent on the the problem of unemployment and accused the government of "throttling MGNREGA".
Sitharaman announced that 'Prime Minister Dhan-Dhaanya Krishi Yojana' will cover 100 low agricultural productivity districts. She said the government will embark on 'Mission for Aatmanirbharta in Pulses' with a special focus on "tur, urad and masoor" to be launched
The Minister said that FY-25 is estimated to end with fiscal deficit of 4.8 per cent and the target is to bring it down to 4.4 per cent in FY 26. The minister announced the enhancement of credit with guarantee cover to MSMEs from Rs 5 crore to Rs 10 crore.
She announced a National Manufacturing Mission covering small, medium and large industries for furthering "Make in India" initiative. There will be 50,000 Atal Tinkering Labs in government schools in the next 5 years, a Centre of Excellence in Artificial Intelligence for education, with a total outlay of Rs 500 crore.
She said gig workers will get identity cards, will be registered on e-shram portal and have healthcare under PM Jan Arogya Yojana. She announced Rs 1 lakh crore urban challenge fund for 'cities as growth hubs'. The Minister announced a modified Udan scheme to enhance regional connectivity to 120 new destinations
She announced that the FDI limit has been enhanced for insurance from 74 to 100 per cent and Jan Vishwas bill 2.0 will be introduced for decriminalising more than 100 provisions in various laws
The minister said amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act shall be taken up and a Nuclear Energy Mission for research and development of Small Modular Reactors (SMR) with an outlay of Rs 20,000 crore will be set up.
The Nuclear Energy Mission aims to develop at least 100 gigawatts (GW) of nuclear energy by 2047, aligning with India's vision of becoming a developed nation under the "Viksit Bharat" initiative.
She said five indigenously developed SMRs will be operational by 2033. She outlined key priorities to accelerate economic growth and ensure inclusive development.
Sithamaran said PM SVANidhi scheme will be revamped with enhanced loans from banks, UPI linked credit cards with Rs 30,000 limit, and capacity building support would be ensured.
The Finance Minister announced an increase in the threshold for Tax Deduction at Source (TDS) on rent from Rs2.40 lakh per annum to Rs 6 lakh per annum.
She also announced the launch of the second Asset Monetization Plan for the period 2025-30.
In a move aimed to provide relief to patients battling severe chronic ailments, Sitharaman announced the expansion of the list of lifesaving drugs and medicines fully exempted from Basic Customs Duty (BCD) in the Union Budget 2025-26.
On the Capex front, the government has allocated Rs 11.21 lakh crore for capital expenditure in the Union budget for 2025-26. This marks a 0.9 per cent increase over last year's Budget Estimate of Rs 11.11 lakh crore, but if compared with revised estimate of 2024-25 at Rs 10.18 lakh crore, the budget estimate of 2025-26 is substantially higher. A capital expenditure, or capex, is used to set up long-term physical or fixed assets.
Industry players praised the government, terming the budget announcements as progressive.
Sitharaman received warm facilitation from BJP members and the party's allies soon after her speech with Prime Minister Narendra Modi also congratulating her.
Union Ministers JP Nadda and Jyotiraditya Scindia were among those who greeted the Finance Minster.
PM Modi walked up to Sitharaman's seat as she was surrounded by elated NDA MPs and had a brief interaction with her.
Sitharaman also met Lok Sabha Speaker Om Birla in the Parliament House after presenting the Budget.
Congress and other opposition parties slammed the Union Budget.
Congress leader and former Finance Minister P Chidambaram said Sitharaman is walking on "a worn-out path" and she and Prime Minister Narendra Modi have not followed the advice of Chief Economic Advisor on the need to deregulate and that the government's "stranglehold" on the activities of the people is getting tighter.
Addressing a press conference, Chidambaram said the economy will trudge along on the old path and deliver no more than the usual 6 or 6.5 per cent growth in 2025-26. \
Trinamool Congress leader Abhishek Banerjee said the budget is nothing but a political document "aimed at securing votes in Bihar, while completely disregarding the needs of Bengal".
The Budget "is not for the poor, not for balanced growth, and certainly not for the principles of federalism," Trinamool Congress said in a post on X.