Middle-Class Relief: A Transformative Budget Unveiled

Finance Minister Nirmala Sitharaman announced a series of tax exemptions and reforms, providing relief to the middle class. The new Budget includes changes in tax slabs, increased FDI limits in insurance, and enhanced fiscal support, all while adhering to a fiscal consolidation plan targeting lower deficits by 2025-26.

Finance Minister Nirmala Sitharaman delivered significant relief to the middle class by announcing an exemption on annual incomes up to Rs 12 lakh from income tax in her recent Budget.

Sitharaman, while presenting her eighth consecutive Budget in Lok Sabha, restructured tax slabs and outlined an ambitious plan for next-generation reforms. These reforms include raising the Foreign Direct Investment limit in the insurance sector and simplifying tax laws.

The budget also aims to bolster fiscal support for welfare measures and is carefully aligned with a fiscal consolidation roadmap that anticipates a reduction in the fiscal deficit to 4.4% by the financial year 2025-26. Currently, the deficit stands at 4.8% for the fiscal year. The government also plans to raise market resources of Rs 11.54 lakh crore net for the upcoming fiscal year to bridge the deficit.