DAVIS CUP: INDIA TAKE 2-0 LEAD AGAINST TOGO INTO THE SUNDARBANS 02 FEBRUARY 2025 www.thestatesman.com BODOLAND TOURISM GETS INFRASTRUCTURAL BOOST X.com/thestatesmanltd. Fb/thestatesman1875 PAGE 16 SINCE 1818 PAGES 16 |` 5.00 |LC KOLKATA | NEW DELHI | SILIGURI | BHUBANESWAR THE UNION BUDGET FOR 2025-26 PROPOSES DEVELOPMENT MEASURES FOCUSSING ON THE POOR, YOUTH, FARMERS AND WOMEN Budget lays down ‘Viksit Bharat' roadmap STATESMAN NEWS SERVICE KEY HIGHLIGHTS NEW DELHI, 1 FEBRUARY F inance Minister Nirmala Sitharaman on Saturday presented an ambitious and growth-oriented Union Budget, providing major income tax relief to the middle class, giving a boost to agriculture and laying a roadmap for 'Viksit Bharat' by 2047. Tabling the Budget in the Lok Sabha, she highlighted the focus areas to accelerate ÜSubstantial increase in funding for key infrastructure projects; Rs 1.5 lakh crore interest-free loans for states for capital expenditure and reforms; Rs 1 lakh Urban Challenge Fund for city development. Ü50,000 Atal Tinkering Labs to be set up in govt schools in 5 years ÜPrime Minister DhanDhaanya Krishi Yojana to cover 100 districts with low productivity, intended to enhance agricultural productivity, adopt crop diversification and sustainable agriculture practices, augment post-harvest storage, improve irrigation facilities and facilitate availability of credit. ÜRs 10,000 cr fund of funds proposed for startups ÜRevised fiscal deficit estimated to be 4.8 per cent of GDP; Capital expenditure at Rs 10.18 lakh crore; Gross market borrowings at Rs 14.82 lakh crore Ü10,000 additional seats in medical institutes; 75,000 medical seats will be created over 5 years ÜNuclear energy mission for R & D of small modular reactors to be set up ÜModified UDAN scheme to be launched with 120 new destinations Ü36 life-saving drugs fully exempted from customs duty ÜCentre of Excellence in AI for Education, to be set up with a dedicated budget of Rs 500 crore ÜA National Manufacturing Mission to be launched for furthering 'Make in India', covering small, medium and large industries; will provide policy support, execution roadmaps, governance and monitoring framework for central ministries and states. growth, secure developments, uplift household sentiments and India's rising middle class, saying: “we see the next five years as a big oppor- tunity for Sabka Vikas”. She said Agriculture, MSME, Investment, and Exports are engines in the journey to 'Viksit Bharat' using reforms Budget impact: Smartphones and EVs to get cheaper; TVs, fabrics to get costlier AGENCIES NEW DELHI, 1 FEBRUARY Union Finance Minister Nirmala Sitharaman, presenting the Budget 2025-26 on Saturday, introduced some key changes in basic customs duties (BCDs) that will impact the prices of various goods. The budget includes duty exemptions on essential medicines, electronic goods, electric vehicle (EV) components, and mobile phone parts. The changes introduced will make them more affordable for consumers. One of the biggest reliefs comes in the healthcare sector, where the government has fully exempted 36 lifesaving drugs used in the treatment of cancer and chronic diseases from basic customs duties. Additionally, 37 more BECOMING CHEAPER ÜESSENTIAL MEDICINES: The govt has fully exempted 36 life-saving drugs used in the treatment of cancer and chronic diseases from basic customs duties; duty cut on several other medicines. ÜMOBILE PHONES & OTHER ELECTRONICS: Govt has reduced basic customs duty on open cells and other components used in electronic goods, including mobile phone batteries ÜELECTRIC VEHICLES: 35 items used in EV battery manufacturing have been given duty exemptions. medicines will also be dutyfree to make essential medical treatment more affordable for patients. Electronics and technology products are also set to get cheaper. The government has reduced the basic customs duty on open cells and other components used in electronic goods. Mobile phones will also see price reductions, as 28 additional goods used in mobile phone batteries have been exempted from duty. Similarly, headphones, wired headsets, microphones, and USB cables will benefit from a customs duty exemption on raw materials used in their production. The EV sector received a major boost with customs duty exemptions on 35 additional goods used in EV battery manufacturing. The government has also removed duties on cobalt powder, lithium-ion batteries, and 12 other critical minerals essential for making EVs, mobile phones, and other high-tech devices. In the leather industry, the exemption of basic customs duty on wet blue leather is expected to lower costs for manufacturers. As a result, products like jackets, shoes, belts, and purses are set to become more affordable. The shipbuilding sector will also benefit as the government extends duty exemptions on raw material components for another 10 years. Marine products will see a price drop, as the customs duty on fish pasteurii has been reduced from 30 per cent to 5 per cent. The fish hydrolysate, used in aquatic feed production, will now attract a lower duty of 5 per cent instead of 15 per cent. Budget a force multiplier, milestone in India's development journey: PM Modi STATESMAN NEWS SERVICE NEW DELHI, 1 FEBRUARY Prime Minister Narendra Modi on Saturday hailed the Union Budget as a force multiplier that would increase savings, investment, consumption, and growth. Congratulating Finance Minister Nirmala Sitharaman and her team for presenting a ‘People’s Budget’, he said the budget marks an important milestone in the journey of India’s development. “This budget reflects the aspirations of 140 crore Indians and fulfils the dreams of every citizen,” Mr Modi said and highlighted that several sectors have been opened up for the youth, and the common citizen to help drive the mission of 'Viksit Bharat'. Typically, the focus of the budget, he observed, is on how to fill the government's treasury. However, this budget focusses on how to fill the pockets of citizens, increase their savings, and make them partners in the country's development. He emphasised that this budget lays the foundation for these goals. “Significant steps have been taken towards reforms in this budget,” the PM said and highlighted the historic decision to promote the private sector in nuclear energy. He added that civil nuclear energy will ensure a significant contribution to the country's development in the future. “ This budget reflects the aspirations of 140 crore Indians and fulfils the dreams of every citizen...Significant steps have been taken towards reforms in this budget. He also underlined that all employment sectors have been given priority in the budget. Pointing out two major reforms that will bring significant changes in the coming time, Mr Modi said that granting infrastructure status to shipbuilding will boost the con- struction of large ships in India, accelerating the ‘Atmanirbhar Bharat Abhiyaan' and including hotels at 50 tourist destinations under the infrastructure category will significantly boost tourism, providing new energy to the hospitality sector, which is the largest employment sector. Remarking that the announcements made in the budget for farmers will lay the foundation for a new revolution in the agricultural sector and the rural economy, Mr Modi said that under the PM Dhan-Dhanya Krishi Yojana, irrigation and infrastructure development will take place in 100 districts. He said that increasing the limit of the Kisan Credit Card from Rs3 lakh to Rs5 lakh will provide greater assistance to farmers. Highlighting that the budget has exempted income up to Rs 12 lakh from tax, the PM said tax reductions have been made for all income groups, which will greatly benefit the middle class and those who have been newly employed. as fuel, guided by the spirit of inclusivity. Presenting the Budget Estimates 2025-26, Mrs Sitharaman said the total receipts other than borrowings and the total expenditure are estimated at Rs 34.96 lakh crore and Rs 50.65 lakh crore, respectively. Furthermore, the gross market borrowings are estimated at Rs 14.82 lakh crore, and the Capex Expenditure of Rs 11.21 lakh crore (3.1 per cent of GDP) earmarked in FY 2025-26 In line with the theme of Viksit Bharat, the Finance Minister outlined the broad principles such as zero-poverty; 100 per cent good quality school education; Access to high-quality, affordable, and comprehensive healthcare; 100 per cent skilled labour with meaningful employment; 70 per cent women in economic activities; and Farmers making our country the ‘food basket of the world’. The Budget also promised to continue the government's efforts to accelerate growth, secure inclusive development, invigorate private sector investments, uplift household sentiments, and enhance spending power of India’s rising middle class. The Budget further proposed development measures (Turn to Page 5) No income tax for income up to Rs 12 lakh STATESMAN NEWS SERVICE NEW DELHI, 1 FEBRUARY In a boost for the middle class, Finance Minister Nirmala Sitharaman, in her Union Budget 2025, unveiled a major overhaul of the new income tax regime, introducing what in effect is a zero-income tax slab for taxpayers earning up to Rs 12 lakh annually. The move will benefit a large section of the population, especially salaried individuals, by reducing their overall tax liabilities. Approximately Rs 1 lakh crore will be made available in the hands of the taxpayers by virtue of changes in slab, rates and rebate. “There will be no income tax payable up to income of Rs 12 lakh (average income of Rs 1 lakh per month other than special rate income such as capital gains) under the new regime. This limit will be Rs 12.75 lakh for salaried taxpayers, due to the standard deduction of Rs 75,000,” announced Mrs Sitharaman. “Tax rebate is being provided in addition to the benefit due to slab rate reduction in such a manner that there is no tax payable by them,” she added. This shift is expected to have a transformative impact on household incomes, providing a significant boost to savings, consumption, and investments. The changes to income tax slabs and rates will benefit taxpayers at various income levels. The Finance Minister also announced that a New Income Tax Bill would be introduced next week. “Government has dedicatedly introduced tax reforms including faceless assessment, the taxpayer charter, and faster processing of returns,” she said. The Finance Minister also announced rationalisation of the TDS and TCS regime. TDS is to be rationalised by reducing the number of rates and thresholds. Threshold limit for TCS on LRS remittance has been hiked from Rs 7 lakh to 10 lakh. The TDS threshold limit on rent has also been hiked to Rs 6 lakh, and she proposed to remove TCS on education loans up to Rs 10 lakh (from specified financial institutions).