Budget 2025: Nirmala Sitharaman says it is a budget made keeping people in mind

Finance Minister Nirmala Sitharaman has described the Union Budget 2025 as a budget “by the people, for the people, of the people”. She said the government has carefully listened to the aspirations of the middle class. In an exclusive interview to PTI, she said Prime Minister Narendra Modi has a very strong support for tax relief, although it was not easy to convince the bureaucracy.

Putting forth the concerns of the middle class, Nirmala Sitharaman said they have been raising concerns about the financial burden for a long time, even though they all pay honestly as taxpayers. In this regard, the personal income tax exemption limit has been increased from Rs 7 lakh to Rs 12 lakh, which has brought great relief. With the new tax structure, a taxpayer can save up to Rs 1.1 lakh annually, which is the highest exemption increase in history.

The Prime Minister clearly said he wants to give relief to the middle class. “The ministry and the CBDT need to be convinced,” she said. She added that striking a balance between tax relief and revenue generation was also considered during the discussions.

Budget 2025: Tax simplification and economic growth

The finance minister Nirmala Sitharaman also said the government is working towards simplifying direct taxation. The ground for this was laid in the July 2024 Budget and now a new tax law is in the pipeline which aims to make compliance easier and user-friendly.

She emphasised on the fact that over the years the government has always increased the tax base while currently there are 8.65 crore income tax return filers. The responsibility still remains to motivate those outside the tax net to contribute to the tax system in a fair and inclusive manner.

Nirmala Sitharaman justified the marginal increase

Nirmala Sitharaman justified the marginal increase in the budget to Rs 11.21 lakh crore for FY26 against the revised Rs 10.18 lakh crore for the current fiscal, while dismissing concerns about capital expenditure. “Numbers don’t matter,” she said, stressing on the quality of spending rather than just the numbers.

“If we are used to a 16-17% increase in capital expenditure every year, we should also appreciate the effectiveness of spending. Many states have shown a lot of interest in capital expenditure, and the results have been promising,” she said.

She also mentioned that during the election year, capital expenditure had slowed down, which impacted the revised estimates. However, she assured that the government is committed to robust infrastructure investment.

Sitharaman reiterated that this budget reflects the voice of the people. “I am happy to be part of a government that listens and responds,” she said, stressing that Modi’s leadership has ensured that the needs of different sectors and income groups are met.

With tax relief, simplification of compliance and continued infrastructure investment, Budget 2025 promises a commitment to economic growth with financial ease for the middle class.