Union Budget 2025: Everything You Need To Know

The Union Finance Minister, Nirmala Sitharaman, presented her 8th budget today, Saturday, February 1, 2025. The budget brings relief to the middle class and a boost to the country's educational structure.

Union Budget 2025 Impact on Middle Class

Finance Minister Nirmala Sitharaman announced that citizens earning up to ₹12 lakh and salaried taxpayers earning up to ₹12.75 lakh will not be taxed. The new tax format and structure aim to reduce the tax burden on the middle class, providing financial relief and stability. Sitharaman stated that taxpayers with an income of ₹12 lakh will benefit from ₹80,000 in tax savings, while those earning ₹18 lakh will benefit from ₹70,000.

TAX SLABS: FY25-26

- ₹4-8 lakh: 5%

- ₹8-12 lakh: 10%

- ₹12-16 lakh: 15%

- ₹16-20 lakh: 20%

- ₹20-25 lakh: 25%

- Above ₹25 lakh: 30%

BUDGET: EDUCATIONAL INVESTMENTS AND ENHANCEMENTS

1. ₹100 crore will be invested in a center of excellence in artificial intelligence.

2. 100% seats in UG and PG medical colleges were added; the government aims to add another 75,000 seats in the next half-decade and 10,000 additional seats by next year.

3. Seats in IIT will be increased; the total number of students in 23 IITs has increased by 100% in the last decade.

4. All government secondary schools will be provided with broadband connections.

5. The government will set up 50,000 Atal Tinkering Labs to ignite scientific curiosity and intelligence in students.

KEY HIGHLIGHTS OF BUDGET 2025-26

1. Establishment of Makhan Board in Bihar: The Makhan Board will be set up to upgrade production and processing of fox nut.

2. 1.7 crore farmers will benefit from the PM Dhan Dhyan Krishi Yojana, covering 100 districts with low yield.

3. PM SVaNidhi Scheme to benefit street vendors: The scheme will be upgraded with improved loans from banks and UPI-linked credit cards with a ₹30,000 limit.

4 Income Tax Relief for Citizens  Citizens earning up to ₹12 lakh will not pay income tax; the same applies to salaried taxpayers earning up to ₹12.75 lakh (including standard deduction).

5. Reduction in Custom Duty on Jewellery: The budget has reduced custom duty on jewellery from 25% to 20%.

Through the budget, the government has prioritized education, finance, and social disparities to increase economic growth and address socio-economic issues.

By: Tanushka Sharma