Nirmala Sitharaman Unveils Budget Focused on Job Creation and Middle-Class Relief

Finance Minister Nirmala Sitharaman announced tax relief for the middle class, a massive job creation fund, and significant spending on state infrastructure in the Modi 3.0 government's first post-election budget. Key measures include scrapping the 'angel tax,' reducing import duties, and boosting capital gains and securities transaction taxes.

Finance Minister Nirmala Sitharaman on Tuesday unveiled a budget designed to offer marginal income tax relief for the middle class, allot a Rs 2 lakh crore fund for job creation schemes over the next five years, and increase spending for states crucial to maintaining the BJP's power following the general elections.

In response to rural distress and unemployment, which have impacted BJP's majority in Lok Sabha, Sitharaman's seventh budget allocates Rs 2.66 lakh crore for rural development and sustains long-term infrastructure investment at Rs 11.11 lakh crore to stimulate economic growth.

The budget eliminates the 'angel tax' on startup investments, reduces import duties on mobile phones and parts, lowers customs duty on precious metals, and modifies capital gains tax. However, the budget raises the securities transaction tax (STT) on futures and options, a move that disappointed market stakeholders.