Budget 2025 : budget of Empowerment ,Growth, tax relief ,Stability, and Inclusivity, writes Nirmalendu Kar Purkayastha

//Nirmalendu Kar Purkayastha//

Union finance minister Nirmala Sitharaman’s eighth budget speech on February 1 may have lasted just 74 minutes.Budget touches all four key engines of growth agriculture, MSME, investment and exports .

 Fiscal deficit is the difference between the government’s expenditure and its income.

fiscal deficit for financial year 2025 has been restricted to 4.8% of GDP and at 4.4% for FY 2026.

  Budget 2025: Where does the rupee come from?

The government’s major sources of revenue include borrowing and other liabilities (24 per cent), income tax (22 per cent), GST and other indirect taxes (18 per cent), and corporate tax (17 per cent). Other sources such as non-tax receipts, excise duties, customs, and non-debt capital receipts make up the remaining share.

Budget 2025: Where does the rupee go?

On the expenditure side, a significant portion of the government’s funds is allocated towards states’ share of taxes and duties (22 per cent) and interest payments (20 per cent). Spending on central sector schemes, defence, finance commission transfers, centrally sponsored schemes, and subsidies also form major components of the Budget. Pension payments and other expenditures take up the rest of the allocation.

Union Budget 2025 Key Highlights

• Focus on Infrastructure Development. …

• Digital Economy & Innovation. …

• Taxation Reforms for a Simplified System. …

• Focus on Health and Education. …

• Support for Farmers and Agriculture. …

• Green Growth and Climate Action. …

• Strengthening Social Welfare Schemes. …

• Revitalization of the MSME Sector.

There will be no Income Tax payable upto Rs 12.00 lakh i.e., up to Rs 12.75 lakh including standard deductions – under the new regime . It seems salaried persons earnings upto Rs 12.00 lakh per annum i.e one lakh per month do not have to pay Income Tax .Income tax slab are also changed substantially New structure to reduce taxes of middle class and leave more money in their hands, boosting household consumption, savings…All of this, Ms Sitharaman said, will “substantially reduce tax burden on middle class and leave more money in their hands”. It will increase disposable income in the hands of common people . More disposable income more savings and more investment . Besides A New Direct Tax Code will be presented in the next week which will also simplify compliance for individual .

Budget 25 emphasises more on increased contribution contributions from Income Tax than relying upon borrowings .So far as expenditure front is concerned state’s taxes share has increased as well as interest payments also will remain high which will ensure government’s commitment toward debt. Indeed a better fiscal discipline and optimum allocation of expenditure for defence, welfare & infrastructure.

This is the first time a budget which attempts to BOOST MIDDLE CLASS HOUSEHOLD SAVINGS & CONSUMPTION along with steps towards Viksit Bharat.