In an important decision for the middle class, Finance Minister Nirmala Sitharaman announced in the Union Budget 2025 that people earning up to ₹12 lakh will not have to pay income tax. This announcement is part of Sitharaman's historic eighth time presenting the Union Budget.

The Prime Minister Narendra Modi praised Sitharaman for presenting what he called a 'people's budget, an instrument capable of fulfilling the aspirations of the Indian populace. He insisted that the budget is for the savings, investments, consumption, and growth of the economy first, with the people's interests in a sound financial situation ahead of revenue for the government.

Key Highlights of Union Budget 2025

Income Tax Relief: In what has been long speculated, Sitharaman revealed that a new income tax bill will be introduced next week under which individuals earning up to ₹12 lakh will be exempted from income tax under the new tax regime.

Focus on Middle Class: PM Modi, commended the middle-class friendly budget, focusing on the betterment of the lives of lay Indians rather than merely raising revenues for the government.

Transformative Reforms: The budget attempts transformative reforms in six principal domains-taxation, power sector, urban development, mining, financial sector, and regulatory reforms.

Support for MSMEs: New criteria for classification of MSMEs have been released. The modified "Udaan" scheme for enhancing regional connectivity is also to be enhanced.

Healthcare Expansion: 75,000 new medical seats to be initiated by the government over the next five years will ensure enhancement in healthcare education.

Self-Reliance in Pulses: A six-year-long mission was initiated to promote self-reliance on pulses production developing more climate-resilient seeds that will serve to augment the productivity.

Entrepreneurship support: New initiative providing term loans for up to INR 2 Crore to 5 lakh first- time entrepreneurs, particularly women and individuals from Scheduled Castes and Scheduled Tribes over the next five years.

Regional Connectivity Initiatives: The updated 'UDAN' scheme will provide facilities to 120 additional destinations and in the next ten years is expected to serve almost four crore passengers with further support to all helipads and smaller airports in hilly and aspirational regions.

Greenfield Airports in Bihar: Bihar officials announced fresh plans for new greenfield airports along with the expansion of Patna Airport and set a brownfield airport elsewhere at Bihta.

This budget is expected to provide for the well-being of all citizens of the state through developmental works in education, power supply, irrigation, and housing, among other spheres.