Finance Minister Nirmala Sitharaman presented her eighth consecutive budget in the Parliament today. This was the second budget of Modi government 3.0 after it came back to power with reduced majority in the General Elections 2024.
From agriculture, innovation, MSMEs to taxation, there was a lot in store for people across the country. The government has also announced that the new Income Tax bill will be presented next week.
Here are the key highlights:
1) Focus on Middle Class
Finance Minister Nirmala Sitharaman announced that no income tax will be paid by people with income up to Rs 12 lakh. The rebate was earlier up to Rs 7 lakh income.
With standard deduction at Rs 75,000, people with income up to Rs 12.75 lakh would not have to pay any tax. Earlier, the tax payable till Rs 12 Lakh was Rs 80,000.
2) Agriculture
The government will launch a new scheme called PM Dhan Dhanya Krishi Yojna which will boost farm productivity in 100 districts of the country. The scheme is going to benefit over 1.7 crore farmers in the country, as per Sitharaman's announcement.
3) MSMEs
To boost MSME financing, the government has increased credit limit under credit access scheme. For micro and small enterprises, the limit has increased from Rs 5 crore to Rs 10 crore. For Start ups, it has been increased from Rs 10 crore to Rs 20 crore. For well run MSMEs, the limit is extended up to Rs 20 crore.
4) Gig Workers
The government has announced that gig workers employed by online platforms will get social security cover. As per the plan, the workers will get ID cards and will be registered on e-Shram portal. The workers will also get healthcare benefits.
5) Fiscal Consolidation
The government continues to meet its targets of fiscal consolidation. Fiscal deficit for financial year 2026 has been projected at 4.4% of GDP, lower than government's earlier target of 4.5%. The capex budget is at Rs 11.21 lakh crore for the next year, almost flat as compared to last year.
