Finance Minister Nirmala Sitharaman to Present Her Eighth Budget on February 1
New Delhi, January 31 – The wait is finally over as the Union Budget 2025 is set to be presented on Saturday, February 1. Finance Minister Nirmala Sitharaman will table her eighth consecutive budget, with significant expectations from taxpayers, farmers, women, and youth. Speculation is rife that the budget may introduce major tax reliefs, fuel price reductions, and enhanced welfare schemes.
Here’s a breakdown of 10 key announcements that could impact the common man.
1. Potential Income Tax Relief for Middle-Class Taxpayers
According to government sources, the new tax regime may undergo a major revision:
- Annual income up to ₹10 lakh could become tax-free.
- A new 25% tax slab may be introduced for income between ₹15 lakh to ₹20 lakh.
The government is reportedly evaluating both options and is prepared to bear a revenue loss of ₹50,000 crore to ₹1 lakh crore if tax exemptions are provided.
2. Possible Reduction in Petrol & Diesel Prices
The budget may bring relief to consumers by reducing excise duty on petrol and diesel. If implemented, this move would lower fuel prices nationwide. Currently, excise duty stands at:
- ₹19.90 per liter on petrol
- ₹15.80 per liter on diesel
Any reduction in these levies would directly impact inflation and transportation costs.
3. Increase in PM Kisan Samman Nidhi Scheme Payout
As per BoFA reports, the PM Kisan Samman Nidhi Scheme is expected to increase annual financial assistance from ₹6,000 to ₹12,000. Currently, eligible farmers receive ₹6,000 in three installments per year. An increase in payout would significantly benefit agricultural households.
4. Expected Hike in Gold Import Duty
Sources indicate that import duty on gold may be increased in Budget 2025, leading to a potential rise in gold prices. However, the jewelry industry has opposed this move, citing concerns over negative impacts on exports and a possible surge in gold smuggling.
5. Major Update for Farmers: Increased Loan Limit for Kisan Credit Card (KCC)
The government may increase the Kisan Credit Card (KCC) loan limit from ₹3 lakh to ₹5 lakh, making agricultural credit more accessible for farmers. This move would provide greater financial security and reduce dependency on informal borrowing.
6. Potential Increase in Standard Deduction for Salaried Individuals
Both new and old tax regimes may see an increase in standard deduction limits. Analysts have suggested that higher standard deductions would help taxpayers combat inflation and enhance disposable income.
7. Relief for Homebuyers: Higher Subsidy on Home Loans
The government currently provides interest subsidies on home loans for properties worth up to ₹35 lakh. Reports suggest that this limit may be increased to ₹50 lakh, making housing more affordable for middle-class buyers.
8. Proposed Enhancements to National Pension System (NPS)
The NPS (National Pension System) is likely to undergo structural improvements in Budget 2025, with possible higher benefits and improved tax incentives for subscribers. These updates aim to encourage greater participation in retirement savings.
9. Senior Citizens May Get Higher Health Insurance Coverage
Senior citizens could receive significant tax benefits on health insurance:
- Health insurance premium limit may be increased to ₹1 lakh for senior citizens.
- For other individuals, the exemption limit may rise to ₹50,000.
This move would enhance financial security for older citizens, reducing healthcare-related financial stress.
10. Expansion of Government Welfare Schemes
The government is expected to broaden the scope of key welfare programs:
- Ayushman Bharat Scheme: May be expanded to include a larger section of economically weaker citizens and senior citizens over 70 years.
- Atal Pension Yojana (APY): A potential increase in pension payouts is under consideration. APY currently has over 7 crore registered users.
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.
