Finance Minister Nirmala Sitharaman presented the Union Budget in the parliament on Saturday. Several announcements were made to boost investment across sectors and simultaneously encourage entrepreneurship and employment.
The fiscal deficit for FY25 stands at 4.8% of GDP; target for FY26 it is estimated at 4.4%.
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1. "The middle class provides strength to India's growth. Our government admires their contribution to the nation-building." With these lines, the finance minister made the much-awaited announcement for the middle class—no income tax payable up to Rs 12 lakh income.
2. Indian Institute of Technology, or IITs, set up after 2015, will be expanded. 6,500 seats will be added across five IITs.
3. 10,000 seats will be added in medical colleges and hospitals across the country. Similarly, 75,000 seats are to be added in the next 5 years.
4. 36 life-saving drugs—used in the treatment of cancer and rare diseases—are fully exempted from basic customs duty.
5. Investment and turnover limits classifying Micro, Small, and Medium Enterprises (MSMEs) will be raised to 2.5 and 2 times, respectively.
6. Fund of funds for start-ups raised by Rs 10,000 crore.
7. The limit for tax deduction on interest income of senior citizens was raised from 50K to 1 lakh. Similarly, TDS on rent is being increased to Rs 6 lakh from annual limit of Rs 2.40 Lakh.
8. 120 new air destinations to be connected under the Udaan Scheme. Helipads and small airports will be constructed in hilly and northeastern regions to boost tourism.
9. The finance minister further proposed to increase the time limit for filing tax returns from 2 years to 4 years in an attempt to ease compliance.
10. Kisan credit cards: The short-term loan limit will be raised to Rs 5 lakh from the current Rs 3 lakh. This will help farmers get more money for undertaking and completing agriculture projects, thus reducing their dependence on private loans.
