Finance Minister Nirmala Sitharaman presents Union Budget 2024-25 in Parliament
Finance Minister Nirmala Sitharaman in the Union Budget 2024-25 delivered significant relief to middle-class taxpayers by raising the standard deduction from ₹50,000 to ₹1 lakh under the new tax regime and increasing the basic exemption limit to ₹5 lakh, effectively reducing the tax burden for an estimated 4 crore salaried individuals.
The budget also introduced revised tax slabs with a zero tax on income up to ₹7 lakh, a 5% tax rate for income between ₹7-10 lakh, 10% for ₹10-15 lakh, and 20% for income above ₹15 lakh — a significant simplification and reduction from the previous structure.
"This budget is for the middle class — the backbone of India's economic growth. We hear their aspirations and this budget fulfils them," FM Sitharaman said while presenting the 108-minute budget speech.
Capital expenditure was raised to ₹11.1 lakh crore — 3.4% of GDP — maintaining the government's focus on infrastructure. However, fiscal deficit was held at 5.1% of GDP, tighter than the previous year's 5.9%, signalling the government's commitment to fiscal consolidation.
The budget allocated ₹4.2 lakh crore for the railway sector — a record allocation — and ₹2.8 lakh crore for road construction and highways.
Stock markets reacted positively with the Sensex gaining 800 points in post-budget trading as analysts hailed it as a "balanced budget" that simultaneously stimulates consumption and maintains fiscal discipline.
