Budget 2025 Unveiled – Big Tax Cuts, Defence Boost & Major Economic Reforms

Budget 2025 Unveiled – Big Tax Cuts Defence Boost & Major Economic Reforms

Budget 2025 Unveiled – Big Tax Cuts, Defence Boost & Major Economic Reforms

The Union Budget 2025 has finally been presented, and it’s packed with major announcements that will impact every section of society. Finance Minister Nirmala Sitharaman, delivering her record-breaking eighth consecutive budget, has introduced big tax reliefs, a major boost in defence spending, and sweeping reforms across key sectors like agriculture, nuclear energy, and the financial sector.

Let’s start with one of the biggest highlights— income tax relief . If you’re earning up to Rs 12 lakh annually , you won’t have to pay a single rupee in income tax! And if you're a salaried employee, that limit goes up to Rs 12.75 lakh after the standard deduction. This is a massive jump compared to previous years and is expected to put more money in people’s hands, boosting savings, investments, and overall consumption. The revised tax slabs are designed to make taxation more progressive, with rates ranging from 5% for incomes above Rs 4 lakh to 30% for incomes above Rs 24 lakh .

Another major focus area of this budget is defence spending . The allocation for the defence sector has been pegged at Rs 6.81 lakh crore , marking a 9.55% increase from the previous year. This move is in line with India’s efforts to strengthen national security, modernize its military forces, and enhance indigenous defence manufacturing under the ‘Aatmanirbhar Bharat’ initiative.

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The budget also brings significant reforms in agriculture , especially with the launch of the PM Dhan Dhanya Krishi Yojana . This initiative will focus on improving irrigation, promoting crop diversification, and ensuring credit access in 100 low-productivity districts. Additionally, the government has announced a six-year mission to reduce India’s dependency on imported pulses and oilseeds, investing heavily in R&D for high-yield and climate-resilient crops. Cotton farming is also getting a boost with increased investment in research to develop pest-resistant and high-yield varieties.

For those involved in the gig economy , there’s some good news! Gig workers will now be officially registered and gain access to social security benefits like healthcare and financial aid. This is a long-awaited move aimed at protecting millions of freelancers and contractual workers across the country.

One of the most ambitious announcements in this budget is the Nuclear Energy Mission . The government has laid out plans to generate 100 GW of nuclear power by 2047 . This will require amendments to key laws to allow greater private sector participation in the nuclear energy space, a move that could be a game-changer for India's clean energy ambitions.

While the budget has been praised for its tax cuts and strategic sectoral focus, it hasn’t been without criticism. The opposition parties have argued that the budget offers little for the middle class beyond tax exemptions and accused the government of using it to influence upcoming elections, especially in Bihar. Congress MP Jairam Ramesh has raised concerns over welfare cuts , particularly the lack of increased honorariums for Anganwadi workers and no new provisions for schemes like school breakfasts.

A notable political controversy has emerged around regional allocations . The Congress has pointed out that Bihar has received several special benefits, including a Makhana Board, IIT Patna expansion, and new airport projects, while Andhra Pradesh has been largely ignored . This has led to accusations of political favoritism ahead of Bihar’s upcoming elections.

The Economic Survey tabled a day before the budget projected that India’s GDP growth for 2025-26 will be between 6.3% and 6.8% , highlighting strong economic fundamentals, fiscal discipline, and rising private consumption. However, the government has set an ambitious fiscal deficit target of 4.4% , a step towards balancing economic expansion with financial prudence.

Overall, Budget 2025 is a mix of bold tax reliefs, strategic sectoral investments, and some controversial omissions. With major reforms in taxation, defence, agriculture, and energy, this budget sets the stage for India’s economic trajectory in Modi 3.0. But the big question remains—will it deliver on its promises? Keep watching as we track its impact in the coming months!

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