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Budget 2025-26: Tax relief, capex boost, fiscal prudence, reforms bring cheer

As common man feels neglected, industrialists, self-employed and employees hail govt’s efforts to accelerate growth, secure inclusive development, invigorate private sector investments
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Residents watch Budget speech on TV screens in Ludhiana. Himanshu Mahajan
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A big relief to the middle class by exempting annual income of up to Rs 12 lakh from income tax and rejigged tax slabs as part of what has been touted as the reformist Budget, hike in capital investments, focus on fiscal consolidation, infrastructure and outlining broad principles of Viksit Bharat to encompass 100 per cent good quality school education, access to high-quality, affordable and comprehensive healthcare, hundred per cent skilled labour with meaningful employment and 70 per cent women in economic activities has brought cheers to the salaried, business class and homemakers in Ludhiana.

Industrialists, self-employed, employees, women, students, farmers and lower, medium to high class in the state’s business and industrial capital have hailed the government’s efforts to accelerate growth, secure inclusive development, invigorate private sector investments, help farmers, uplift household sentiments and enhance the spending power of the country’s rising middle class, announced by the Finance Minister Nirmala Sitharaman while presenting the Interim Union Budget for 2025-26 to Parliament on Saturday.

However, the common man on the street found nothing lucrative or on offer for ones looking for some relief from the rising inflation, not even allowing two square meals to many, in her eighth consecutive Budget presented by Sitharaman and the first one of Prime Minister Narendra Modi-led Union Government’s third consecutive term.

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A cross-section of residents from different segments of society to whom The Tribune spoke to elicit Budget reaction, welcomed no income tax payable for income of salaried individuals up to Rs 12.75 lakh under the new tax regime, besides a host of other measures such as proposal to rationalise tax deduction at source (TDS) by reducing the number of rates and thresholds above which the TDS is deducted, reforms related to rent payments, remittances, higher education, sale of goods and decriminalisation of offenders.

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The allocation of Rs 11.21 lakh crore towards capital expenditure (capex), marking a 0.9 per cent increase from current fiscals’ allocation and proposed development measures spanning 10 broad areas focusing on poor, youth, farmers and women were also lauded by the majority.

They, however, lamented that the Modi-led Centre has again ignored the ‘aam aadmi’, who was finding it difficult to make both ends meet due to skyrocketing prices of essentials.

Chaman Lal, a motor mechanic operating near the bus stand, quipped: “Budget has nothing to improve our lives as we are again left to fend for ourselves with no relief offered to the poor and marginalised sections on the street, who are on the verge of extinction.”

“Spurring agricultural growth and productivity; building rural prosperity and resilience, taking everyone together on an inclusive growth path, boosting manufacturing and furthering Make in India, supporting MSMEs, enabling employment-led development, investing in people, economy and innovation, securing energy supplies, promoting exports, and nurturing innovation are set to give much-needed boost to main sectors and different sections of society,” said a leading financial analyst, Arzoo Singh.

An educationist, Bharat Kumar, said: “Infrastructure expansion at five new IITs to facilitate 6,500 more students, 10,000 new medical seats and a big Artificial Intelligence push will lift the education sector with over Rs 1.28 lakh crore allocation for 2025-26, higher than the revised estimate of Rs 1.14 lakh crore in current fiscal.”

“The Budget brought a much-needed relief for the middle class with no tax on income of up to Rs 12.75 lakh to cut the income tax rates in the new tax regime,” felt a tax consultant, Radhika Sood.

A homemaker, Manpreet Kaur, said: “The new tax regime has come as a big relief to the middle class, which will help meet our daily needs.”

“Keeping the capex for railways unchanged at Rs 2.52 lakh crore has dashed the hopes of significant boost to support infrastructure growth, modernise freight corridors, and enhance passenger safety, contributing to the negative stock market reaction,” said a frequent train commuter, Siva Prasad.

A leading businessman Rajiv Mehta said: “The estimated fiscal deficit for 2025-26 at 4.4 per cent, Jan Vishwas Bill 2.0 to decriminalise over 100 provisions, proposal for investment-friendly index of states and revised tariff rates by removing 7 and retaining only 8 tariff rates in the new regime are steps in the right direction.”

“An outlay of Rs 1.5 lakh crore for 50-year interest free loans to the states for capex and infrastructure will provide much-needed help,” a retired bureaucrat, MP Sharma, said.

A leading pharmaceutical manufacturer, Vivek Gupta, said fully exempting 36 life saving drugs and medicines from basic customs duty would help the ailing humanity.

“Prime Minister Dhan-Dhaanya Krishi Yojana in partnership with the states, covering 100 districts with low productivity, moderate crop intensity and below-average credit parameters, will boost the agriculture sector and help farmers,” a progressive farmer, Amanjit Singh said.

A local MSME owner Sandhya Goel said: “For micro and small enterprises, from Rs 5 crore to 10 crore, leading to additional credit of Rs 1.5 lakh crore in the next 5 years; for start-ups, from Rs 10 crore to 20 crore, with the guarantee fee being moderated to 1 per cent for loans in 27 focus sectors important for Atmanirbhar Bharat and for well-run exporter MSMEs, term loans up to Rs 20 crore will improve access to credit.”

“Customised credit cards with Rs 5-lakh limit for micro enterprises registered on Udyam portal will be of instant help,” said a cycle parts manufacturer, Ajay Ahuja.

Radha Rani, who runs a bakery, feels the new scheme for first-time entrepreneurs to provide term loans up to Rs 2 crore during the next five years would boost the entrepreneurship.

“Day care cancer centres in all district hospitals in the next three years with 200 centres coming up in the next fiscal will provide succour to the needy,” said Rajinder Kaur, who runs an NGO for cancer patients.

Niranjan Pandey, who runs a start-up, said, “Rs 20,000 crore allocation to implement private sector-driven research, development and innovation in a deep tech fund will catalyse the next generation start-ups as a part of this initiative.”

“Enhancing financial independence of women and providing them an enabling atmosphere to work with an aim to bring 70 per cent women in economic activities will go a long way in women empowerment,” said Aprajita Singh, a women activist.

A village sarpanch, Gurmukh Singh, said they were expecting a big announcement to improve the rural economy in the Budget but nothing of that sort happened.

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