New Delhi, February 1, 2025 – Finance Minister Nirmala Sitharaman presented her eighth consecutive Union Budget 2025 in the Lok Sabha, unveiling significant tax relief for the salaried class. Under the new tax regime, individuals earning up to ₹12.75 lakh annually will pay zero income tax, along with several other key fiscal measures aimed at boosting economic growth.
Key Highlights from Budget 2025 Speech
- Fiscal Deficit:
- Fiscal deficit for FY25 set at 4.8%.
- Estimated fiscal deficit for FY26 projected at 4.4%.
- Jan Vishwas Bill 2.0:
- The government will introduce Jan Vishwas Bill 2.0 to decriminalize over 100 provisions and boost business confidence.
- An Investment Friendly Index of states will be launched in 2025.
- Revised Tariff Rates:
- Removal of seven additional tariff rates to simplify the tax structure.
- After this revision, only eight tariff rates will remain.
- Infrastructure and Capital Expenditure:
- The government has allocated ₹1.5 lakh crore in 50-year interest-free loans to states for capital expenditure and infrastructure projects.
- Healthcare and Medicine:
- 36 life-saving drugs and essential medicines have been fully exempted from basic customs duty to make healthcare more affordable.
Income Tax Slabs for FY 2025-26 (New Tax Regime)
| Annual Salary (₹) | Income Tax Rate |
|---|---|
| 0 – 4 lakh | Nil |
| 4 – 5 lakh | 5% |
| 8 – 12 lakh | 10% |
| 12 – 16 lakh | 15% |
| 16 – 20 lakh | 20% |
| 20 – 24 lakh | 25% |
| Above 24 lakh | 30% |
Economic & Industry Expectations
The high-stakes Budget 2025 arrives amid growing industry expectations for higher capital expenditure, income tax relief, and business-friendly reforms. Key focus areas include infrastructure development, ease of doing business, artificial intelligence (AI), and digital economy initiatives.
Budget 2025 Speech Highlights
Finance Minister Nirmala Sitharaman began her Budget 2025 speech at 11 AM in the Lok Sabha, marking her eighth budget presentation and her second full-fledged budget under the Modi 3.0 government.
The first part of the Budget Session commenced on January 31, 2025, with the tabling of the Economic Survey 2025 in Parliament.
Stay tuned for live updates on income tax changes, market reactions, and further announcements from the Union Budget 2025.
