Budget Live: Modi hails 'People's Budget'; Rahul says 'it will benefit only 25 people'
Presenting her 8th straight Budget in the Lok Sabha, Sitharaman laid out a blueprint for next-generation reforms including raising FDI limit in insurance sector, simplification of tax laws
Finance Minister Nirmala Sitharaman on Saturday (February 1) provided a big relief to the middle class as she exempted annual income of up to Rs 12 lakh from income tax and rejigged tax slabs as part of her Budget 2025-26.
Also read: Budget 2025-26: What gets costlier, what is cheaper?
Presenting her eighth straight Budget in the Lok Sabha, Sitharaman laid out a blueprint for next-generation reforms including raising FDI limit in insurance sector, simplification of tax laws, cutting duties on intermediaries while providing enhanced fiscal support for welfare measures.
Sitharaman said the government's development track record of the past 10 years and structural reforms have drawn global attention. A Viksit Bharat will have zero poverty, quality education, high-quality, affordable and comprehensive healthcare, she said and added that the Budget's focus is to take everyone together on inclusive growth path.
Also read: No income tax up to Rs 12 lakh: Know the revised slabs under new regime
Asserting that the Budget's focus is to take everyone together on an inclusive growth path, she said the proposed development measures span 10 broad areas, focusing on 'garib' (poor) youth, 'anna daata' (farmer) and 'nari' (woman), spurring agricultural growth and productivity, building rural prosperity and resilience.
Also read: Budget: Top 10 announcements: Cheer for farmers, women and gig workers
PM lauds Budget
Prime Minister Narendra Modi lauded the Union Budget as a "people's budget" that puts more money in the hands of people and said it is a force multiplier that will increase investments and lead to growth. Opposition Leader Rahul Gandhi said, ''The Budget is a band-aid for bullet wounds, and the government is bankrupt of ideas.''
Later, addressing a public rally in Sadar Bazar in poll-bound Delhi, Rahul said, "The budget was presented today, the target of the budget was to benefit 25 people. They will give you a little, they will waive a little tax but if you see the target of the budget, is to provide India's money to 20-25 billionaires.
Also Read: Interview: 'India can be the hub of GCCs and back offices
Will Budget 2025-26 ease middle-class burden? | Talking Sense with Srini
Live Updates
- 1 Feb 2025 11:26 AM GMT
'Nothing' in Budget for Jharkhand: JMM-led alliance
The ruling JMM-led alliance on Saturday claimed that the Union Budget 2025-26 has "nothing" for Jharkhand as the state and its people were "neglected completely" by the Centre.
Despite the state's need for adequate central assistance to alleviate poverty, Jharkhand has been "sidelined", state minister and Congress leader Radha Krishna Kishore alleged.
Kishore claimed, “Jharkhand has been ignored and sidelined in the Budget, despite the fact that the state needs central assistance to deal with poverty here. The state is mineral rich but it has also been facing poverty.” He claimed that the kind of support Jharkhand is required from the Centre was not given.
“For me, it’s a routine Budget as it has nothing to strengthen the country’s economic or social conditions. Many announcements have been made for Bihar only due to upcoming elections there,” Kishore alleged.
- 1 Feb 2025 11:22 AM GMT
FM on income tax slabs under Congress in 2014 and today
Union Finance Minister Nirmala Sitharaman said, "If you compare what we have done today with what was done in 2014 under the Congress government...the change in rates has also benefited people earning Rs 24 lakh. Now they have Rs 2.6 lakh more than under the old system. So, it is not just those earning up to Rs 12 lakh who are benefited, because they do not have to pay any tax due to exemptions..."
- 1 Feb 2025 11:09 AM GMT
Kerala FM Balagopal: Budget 'extremely disappointing'
Kerala's Finance Minister K.N. Balagopal has termed the Union Budget as "extremely disappointing".
Speaking to the media, he stated that more benefits were allocated to politically significant regions while Kerala had reasonable expectations that were not met. Sarcastically, he questioned whether students in schools would now be served chapati, dal, and makhana as part of their midday meal, emphasising that what is actually needed is rice and curry.
He criticised the Budget for not treating all states equally. His remarks were in response to the BJP's claim that the Budget was "Kerala-friendly." Balagopal countered that the BJP’s stance was akin to rubbing salt into wounds.
He asserted that numbers, not politics, speak for themselves. He pointed out that there was no allocation for the disaster-affected regions of Mundakkai and Chooralmala in Wayanad and that Vizhinjam was not even mentioned. He stressed the necessity of a special package for Wayanad.
Based on population, Kerala was entitled to approximately Rs 73,000 crore from the states’ share last year. However, it received only around Rs 32,000 crore. Though the total allocation to states has increased, Kerala should have received an additional Rs 14,258 crore this time. Balagopal also criticised the Budget for reducing agricultural subsidies despite the overall increase in expenditure. He highlighted that there was no hike in funds for the rural employment guarantee scheme and that even the allocation for crop insurance had been slashed.
- 1 Feb 2025 10:57 AM GMT
FM: No reduction in public spending on capital expenditure
"There is no reduction in the public spending on capital expenditure. We continue to place emphasis on the multiplier effect that capital expenditure done by government has shown has sustained us. We continue on that, and with all this, our fiscal prudence has been maintained..." FM said.
- 1 Feb 2025 10:53 AM GMT
FM: Income tax simplification is completed
Union Finance Minister Nirmala Sitharaman says, "...One thing which I certainly would like to highlight is responding to the voice of the people, which is what Prime Minister Modi is known for in his administration. It's a very responsive government and as a result, the income tax simplification which I announced in July is already completed in its works and we shall bring the bill in the next week...So if we are talking of reform inclusive of taxation, the work is done. This budget also speaks about rationalisation and customs. Tariffs are being brought down, tariffs are being simplified..."
- 1 Feb 2025 10:51 AM GMT
Budget has neglected Kerala: CM Pinarayi Vijayan
The approach of the Union Budget, which has completely ignored Kerala’s key demands, is highly condemnable, said state's Chief Minister Pinarayi Vijayan.
"Kerala had requested a special package of Rs 24,000 crore. A special package was sought for the rehabilitation of Wayanad. Consideration was requested for Vizhinjam in a manner that would acknowledge its national significance. None of these demands were addressed in the Budget. There are no major projects included. Repeated demands for institutions like AIIMS and a railway coach factory have also been rejected in this Budget.
"While Rs 25 lakh crore has been allocated to states, Kerala has not even received Rs 40,000 crore. Kerala is being penalised for its progress, including in the education sector. If a sector has made progress, it is denied funding. If a sector needs development, it is also ignored. Even Kerala’s requests regarding its borrowing limits have been rejected. There is no increased support price for agricultural produce. Crops like rubber, paddy, and coconut have been neglected, and the proposals submitted for them have not been approved. Rubber imports will not be regulated.
"The Union Budget has become a political statement of neglect towards Kerala’s expectations. This is deeply disappointing and unfortunate. A budget should be an economic document, but this one is shaped by electoral considerations, focusing on regions with upcoming elections. Such an approach undermines the very concept of balanced development.
"OBCs, Scheduled Castes and Tribes, and the agricultural and farm labour sectors have not been given their rightful share of benefits. Not only has the agricultural and industrial sectors been inadequately considered, but various agricultural subsidies have also been cut. The MGNREGA employment guarantee scheme, which was a relief for the poor, has not been given its due allocation in the Budget. The Budget’s approach will increase inflation, unemployment, and poverty while stalling development. By disregarding the interests of states, it violates the federal spirit of the Constitution. This is highly condemnable," Vijayan said.
