NEW DELHI: Finance Minister Nirmala Sitharaman today presented a historic Union Budget, introducing significant tax relief for the middle class. In a landmark move, the budget exempts individuals earning up to Rs 12 lakh annually from paying income tax. This decision aims to provide substantial financial relief to taxpayers, especially the middle class, and boost household consumption, savings, and investment.

The budget also includes a standard deduction of Rs 75,000 for salaried individuals, further enhancing the tax benefits. The new tax structure is expected to benefit over 80% of taxpayers, with an estimated 1 crore individuals no longer required to pay any income tax. This reform is part of a broader effort to simplify the tax system and encourage voluntary compliance.

Marking her record eighth consecutive budget presentation, FM Sitharaman has laid down an expenditure outlay of Rs 50.65 lakh crore for 2025-26, aiming to balance fiscal consolidation with economic growth. This represents an increase of 7.4 per cent over the 2024-25 expenditure estimates of Rs 47.16 lakh crore, out of which Rs 5.41 lakh crore has been earmarked for Centrally Sponsored Schemes, compared with Rs 4.15 lakh crore for the current financial year.

The 2025-26 budget also outlines a roadmap for India’s continued economic expansion, emphasizing agriculture, micro, small, and medium enterprises (MSMEs), investment, and exports. It has earmarked a total capital expenditure of Rs 11.22 lakh crore for the next fiscal, with effective capital expenditure amounting to Rs 15.48 lakh crore.

Despite terming agriculture as the first engine of growth, FM Sitharaman has made a total budgetary allocation for the Department of Agriculture of Rs 1.27 lakh crore, compared to Rs 1.31 lakh crore (revised estimate) for 2024-25.

Prime Minister Narendra Modi hailed the budget as a “people’s budget” that fulfils the aspirations of every Indian. He said the budget aims to uphold the vision for a ‘Viksit Bharat’  by the year  2047, with transformative regulatory measures and sector-specific reforms.