UPPER HAND TO MIDDLE CLASS

Zero tax on income up to 12 lakh will leave more cash in people's hands and spur demand to boost consumption-led growth in the Indian economy | Customs duties restructured to strengthen domestic manufacturing under 'Make in India', make critical treatments affordable | Employment generation, internship scheme given large outlays as government expects investment in people to be a force multiplier | 4.8% fiscal deficit projected for FY25, 4.4% targeted for FY26; capital expenditure for FY26 pegged at ₹11.21L-cr, higher than the 10.18L-cr spent in FY25

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NEW DELHI: Union finance minister Nirmala Sitharaman's eighth budget speech on February I may have lasted just 74 minutes - the shortest, excluding the interim budget she presented last year, with a speech that lasted just around an hour - but it will be remembered as one of the most significant budget speeches in decades, with a sweeping tax rebate aimed at reviving consumption demand and addressing a cyclical slowdown in economic growth.

Expectations of tax relief of some sort had run high in the run-up to the budget, and Sitharaman's opening sentence confirmed that one was in the offing: "This budget continues our government's efforts to: accelerate growth, secure inclusive development, invigorate private sector investments, uplift household sentiments, and enhance spendB ing power of India's rising middle class," she said.

The Union Budget 2025-26 announced a tax rebate that would mean people earning up to 12 lakh do not pay any tax at all; the arrival of a much-awaited reform, the new income tax bill, next week; and a continued focus on productive capital expenditure.

It announced a bettering of the fiscal deficit number for 2024-25, and a lower-than-expected target for 2025-26.

It announced changes in customs duties, a move aimed at making Indian manufacturing more competitive. And it announced plans to reduce regulatory red tape that make it difficult to do business.