Budget 2025 Highlights: Middle Class’ Tax Win To Consumption Second Wind, Key Takeaways From FM Speech
FM Sitharaman said the work on income tax simplification law that was announced in July last year has been completed within the deadline and will be introduced in Parliament next week.
KEY HIGHLIGHTS
Budget 2025 Live Reaction: SBI Chairman Says Capex Failed To Impress Markets
Budget 2025 Live: Sitharaman Responds On Implementing Tax Reform
PM Modi Says Budget Puts Path Forward For Reforms
Budget 2025 Live: Modi Says Middle Class, Salaried People Can Now Aspire Bigger
Budget 2025 Live: PM Modi Lauds Tax Cuts, Proposals
Budget 2025 Live Reaction: SBI Chairman Says Capex Failed To Impress Markets
State Bank of India Chairman CS Setty told NDTV Profit the Union Budget is was comprehensive and good and covers the whole gamut of stakeholders.
On market reaction, he said market will analyse and digest the budget proposals. "The capex number of Rs 11.2 lakh crore was not something the market liked but if you add up the capex amount allocated for states and that of public sector enterprises, the amount works out to Rs 19.8 lakh crore," he said.
"This shows that government’s commitment toward public spending is intact."
Budget 2025 Live: Top 10 Highlights You Need to Know
Income Tax: Big win for the middle class! The Finance Minister announced that there will be no tax on income up to Rs 12 lakh under the new regime and up to Rs 12.75 lakh exempt with standard deduction.
Fiscal Deficit: Government targets 4.4% of GDP for fiscal 2026 after beating this year’s target. Fiscal consolidation remains a priority.
Capex: Capital expenditure spending is set at Rs 11.21 lakh crore for fiscal 2026. But the fiscal 2025 target was missed by 8% due to elections, with Rs 10.18 lakh crore spent.
PM Modi’s Take: He called this a "People’s Budget," and says it will boost savings, investment, and help drive India toward ‘Viksit Bharat.’
Gold Bonds: Sovereign Gold Bonds may be discontinued, said Economic Affairs Secy.
EV Boost: Tariff cuts on key EV materials like lithium-ion battery scrap, cobalt, and lead to support local manufacturing. EV stocks rallied on the announcement
Stock Market on Budget Day: Nifty 50 and Sensex ended flat after early gains were erased during Sitharaman’s speech. Nifty closed down 0.11%, Sensex up 0.01%.
Expert Views and Consensus: Tax relief will drive consumption, is what we heard veterans say over and over. The Budget is being seen as a shift in direction, balancing fiscal prudence with urban growth.
Cheaper & Costlier: Prices drop for life-saving drugs, EVs, mobiles, and shipbuilding materials. TVs and knitted fabrics might get costlier.
Bihar Boost: National Food Tech Institute and Makhana Board announced to strengthen food processing and farmer incomes.
Budget 2025 Live: Former Finance P Chidambaram Calls for Deregulation
Former Finance Minister P Chidambaram expressed doubt about the budget’s impact on private investments, referencing the Finance Minister’s repeated attempts to plead with and warn private investors over the past two years.
"If pleading, cajoling, or warning hasn’t worked, what effect could the budget have?" he said.
He highlighted the lack of a conducive environment for private investments, citing excessive regulations across multiple agencies. "There are too many layers of regulations, and agencies are so empowered they’ve become weaponised," Chidambaram said, pointing out that wealthy Indians are increasingly settling abroad.
He called for deregulation, emphasising, "Get out of the way. Don't regulate." He argued that the government must cut down on regulations imposed by RBI, SEBI, the Ministry of Coal, Steel, Mining, and other sectors. "The Finance Minister should take a sledgehammer and chop these off," he said, reflecting on the shift from the deregulation era that began in 1991. "Now we have gone halfway back."
Budget 2025 Live: Chidambaram On Government's Capacity to Deliver New Programs
Former Finance Minister P Chidambaram questioned the government's decision to announce 15 new programs in Budget 2025, citing the failure to achieve objectives in both past and current schemes.
"If they have failed to deliver on past programs, what is the confidence that these new programs will be delivered?" he asked. He also pointed out that bureaucracy might benefit from the increase in discretionary schemes, adding, "The bureaucracy will be happy as they have more discretionary schemes."
Budget 2025 Live: Chidambaram Doubts Government’s Capacity to Spend Allocated Funds
The Former Finance Minister expressed skepticism over the government’s ability to spend allocated funds, raising concerns about the projected deficit and tax collection numbers.
"Expenditure numbers do not give me optimism," he said. Referring to the current year's figures, he pointed out that revenue receipts are lower by Rs 41,240 crore and revised tax receipts are lower by Rs 26,439 crore.
"In key sectors, they have underspent the money. I am doubtful of their capacity to spend," he added. He further questioned the credibility of spending for programs like Poshan, Jan Jeevan Mission, and Pradhan Mantri Gram Sadak Yojana, noting the significant differences between last year's budget estimates and revised estimates for these schemes. "How can I be confident that the government will spend the money allocated this year?" he said.
Budget 2025 Live: Chidambaram On Budget’s Impact on Growth and Private Investment
When asked about the budget's potential to boost consumption and private capex, former Finance Minister P Chidambaram agreed partially, estimating an impact of around 20%.
However, he pointed out that the Finance Minister had herself acknowledged growth will be 6.4%, raising concerns.
"If growth in 2025-26 will be no different from 2024-25, what has the budget done?" Chidambaram said. "This budget should have aimed for growth of 8%. Neither the Finance Minister nor the Chief Economic Adviser is willing to state that, because of this budget, growth will rise to 8% in 2025-26. They haven’t said it."
