Image for representation.
Credit: iStock Photo
Finance Minister Nirmala Sitharaman tabled the much anticipated Union Budget for FY 2025-26 on February 1, which also marked a record 8th Budget presentation for the 65-year-old. In a major relief to the middle class, Sitharaman announced that there would not be any tax liability on income upto Rs 12 lakh for salaried persons under the new tax regime and raised the basic exemption from Rs 2.5 lakh to Rs 4 lakh.
Speaking on this front, Vinit Sambre, Head of Equities, DSP Mutual Fund, said, "The Budget has shifted the focus from relying primarily on government investment as the key driver of growth to a more balanced approach that promotes consumption and private sector investment. While the government's planned capital expenditure is moderate, which may seem concerning at first glance, maintaining focus on execution should yield positive outcomes."
"Various measures aimed at improving the ease of doing business — such as simplifying regulations and promoting the 'Make in India' initiative — should eventually stimulate private investment. Additionally, putting more money into the hands of individuals through tax savings is expected to benefit consumer-oriented businesses."
"Achieving these objectives while maintaining fiscal prudence is commendable. The government has adhered to its fiscal consolidation path, which should help keep interest rates stable and conducive to economic growth," Sambre added.
Union Budget 2025 | Nirmala Sitharaman, as Finance Minister, presented her record 8th Union Budget this time. While inflation has burnt a hole in the pockets of 'aam janata', the Modi govt gave income tax relief for those making up to Rs 12 lakh per year in salaried income. Track the latest coverage, live news, in-depth opinions, and analysis only on Deccan Herald. Also follow us on WhatsApp, LinkedIn, X, Facebook, YouTube, and Instagram.