Finance Minister Nirmala Sitharaman will present the Union Budget 2026 this Sunday. From Fiscal Deficit to Capex and Disinvestment, here is a simple guide to the key financial terms you need to know to understand India’s economic blueprint.

Finance Minister Nirmala Sitharaman will present the Union Budget 2026 this Sunday. From Fiscal Deficit to Capex and Disinvestment, here is a simple guide to the key financial terms you need to know to understand India’s economic blueprint.

Budget 2026: Key terms you must know to understand the Union Budget 2026

Governments in Israel generally fall more with a procedural whimper than with a dramatic ideological bang – a pattern that helps explain why the scheduled Knesset vote on Wednesday on the first reading of the 2026 budget is looming so large.


Israeli Government Could Collapse if Benjamin Netanyahu Fails to Pass the Budget Proposal

As India prepares its upcoming budget, a mixed macro picture sets the stage. Big private investment remains elusive, while global uncertainties and volatile risk assets shape the current environment.
Economic trade-offs remain challenging, yet consolidation of government finances is set to continue.

Budget 2026: Reforms to Star in Budget's Big Reveal? 

India's Union Budget 2026 approaches with anticipation, featuring new investments in railways and defence alongside focus on key sectors like infrastructure and manufacturing.


India's FY26 Budget: Key Sectors in Spotlight 

Union Budget 2026: India's Union Budget 2026 session begins January 28, with Finance Minister Nirmala Sitharaman expected to present on February 1, focusing on tech innovation support and job creation amid 7%+ GDP growth targets.


Union Budget 2026: Emerging Tech, Job Creation Key 

French Prime Minister Sébastien Lecornu is facing a major political test as he races to pass the full national budget before the New Year deadline. With opposition resistance mounting and economic pressures rising, this video breaks down what’s at stake, how the negotiations are unfolding, and what a delay or failure could mean for France’s government, economy, and Lecornu’s leadership.

Lecornu Faces Challenge of Passing the Full Budget Before the New Year Begins

France’s social security budget heads into a knife-edge vote on Tuesday that could plunge Prime Minister Sébastien Lecornu's government into a new political crisis and open a €30-billion gap in funding for welfare, pensions and healthcare. 


France eyes political turmoil if PM Lecornu's budget proposal fails to pass

UK Finance Minister Rachel Reeves unveiled a sweeping new budget aimed at raising around 26 billion pounds a year by 2029-30. Here are the key takeaways from her announcement and how it affects you.


UK budget & its impact on taxpayers  

As political uncertainty grips France, President Emmanuel Macron is seeking stability amid a shifting parliamentary landscape. The outgoing French Prime Minister has expressed cautious optimism about reaching a budget agreement with the opposition, signaling potential cooperation despite recent electoral setbacks.

With Macron's centrist alliance weakened, the ability to pass crucial fiscal legislation may now hinge on bipartisan dialogue. Can France avoid a budget deadlock?

Macron Searching for Stability: PM Optimistic on Budget Deal with Opposition 

The U.S. is facing an unprecedented debt crisis, adding $1 trillion in just 48 days, pushing the total federal debt to nearly $38 trillion, five years ahead of projections. With government spending surging to 44% of GDP and deficits reaching historic levels, experts warn that the U.S. is heading toward a fiscal catastrophe. Analysts are calling this a spending crisis, with debt interest now surpassing even defense spending. Will political gridlock push America into a debt spiral?


US Debt Crisis: $1 Trillion Added in 48 Days, Spending Crisis Persists

President Donald Trump has unveiled a bold new budget proposal that aims to slash federal government spending by over $160 billion, targeting a wide range of non-defence programmes while keeping military funding largely unchanged. The move has already stirred unrest among Republicans in Congress, who are growing uneasy about the scale of the cuts.
<h2>What all is facing cuts in Trump's budget proposal?</h2>
The proposed 2026 budget, often referred to as a "skinny budget", outlines sweeping reductions to domestic spending. Key areas facing cuts include:
<ul>
<li>Public health: Millions would be stripped from agencies like the National Institutes of Health and the CDC.</li>
<li>Education: Grants supporting low-income students, teacher training, and preschool development could be axed.</li>
<li>Environment: Environmental Protection Agency programmes&mdash;particularly those linked to environmental justice&mdash;are in the crosshairs.</li>
<li>Housing and labour: The Departments of Housing and Urban Development, the Interior, and Labour could each lose over 30% of their current funding.</li>
<li>Foreign aid: USAID and the U.S. Institute of Peace may be eliminated entirely.</li>
<li>Scientific research: NASA&rsquo;s space science initiatives and funding for the International Space Station would see major reductions.</li>
</ul>
At the same time, the Trump administration wants increased investment in border security, rail and air safety, and law enforcement.
Also read: <a href="https://www.wionews.com/world/donald-trump-ukraine-peace-talks-us-ukraine-minerals-deal-russia-zelensky-putin-9027333" rel="dofollow noopener" target="_blank">&lsquo;Dealmaker in chief&rsquo; or dealbreaker? Is Trump walking away from Ukraine peace talks after sealing key minerals deal?</a>
<h2>How are GOP and Democrats reacting?</h2>
The reaction on Capitol Hill has been swift&mdash;and mixed.
Senate Appropriations Chair Susan Collins (R-Maine) criticised the proposal for lacking detail and for holding defence spending flat at $893 billion. &ldquo;I have serious objections to the proposed freeze in our defence funding,&rdquo; she said, adding that cuts to biomedical research and support for low-income households were also deeply concerning.
Former GOP Senate leader Mitch McConnell, now leading the Senate&rsquo;s defence funding panel, echoed those concerns. He accused the White House of using &ldquo;OMB accounting gimmicks&rdquo; and warned that the proposed defence budget was &ldquo;not a substitute for full-year appropriations.&rdquo;
Also read: <a href="https://www.wionews.com/world/donald-trumps-id-like-to-be-pope-breaks-internet-as-world-awaits-new-vatican-head-video-9016996" rel="dofollow noopener" target="_blank">Donald Trump's 'I'd like to be pope' breaks internet as world awaits new Vatican head - Video</a>
Senate Armed Services Chair Roger Wicker (R-Miss.) added that the proposal would &ldquo;shred to the bone our military capabilities.&rdquo;
House Republicans have been more cautious. House Appropriations Chair Tom Cole (R-Okla.) said lawmakers had &ldquo;a better understanding of what can pass and what can&rsquo;t&rdquo; than the administration.
<h2>Could Congress push back?</h2>
Although Congress often sets its own funding priorities, Trump&rsquo;s administration is signalling that it may withhold funding lawmakers approve. A senior White House official did not rule out using &ldquo;impoundment&rdquo; powers to block spending decisions by Congress.
Also read: <a href="https://www.wionews.com/world/mike-waltz-un-ambassador-national-security-advisor-donald-trump-signal-john-bolton-9027090" rel="dofollow noopener" target="_blank">&lsquo;Doesn&rsquo;t compare&rsquo;: Mike Waltz&rsquo;s UN posting is a demotion, not a promotion, says the guy who&rsquo;s held both jobs</a>
This sets the stage for a clash between the White House and Capitol Hill, especially with Republicans needing some Democratic votes to pass any budget. Without bipartisan support, the risk of a government shutdown increases, with a deadline looming on 30 September.
<h2>What are Democrats saying?</h2>
Democrats have come out strongly against the proposed cuts. Senate Minority Leader Chuck Schumer called Trump&rsquo;s budget &ldquo;a betrayal of working people&rdquo; and &ldquo;morally bankrupt.&rdquo; He pledged to oppose the plan with full force.
With memories of the March spending battle still fresh, Democrats are under pressure to resist further compromises.
<h2>What does the budget really mean?</h2>
While presidential budgets are typically symbolic, this year&rsquo;s proposal has more weight. Trump has already frozen billions in spending without Congress&rsquo; approval, drawing multiple lawsuits and watchdog investigations. This budget signals how aggressively he intends to reshape government spending.
It also reflects Trump&rsquo;s broader political goals. White House budget director Russ Vought framed the proposal as a push to return power to states and families. &ldquo;The Federal Government has intruded on matters best left to American families,&rdquo; he wrote.
Also read: <a href="https://www.wionews.com/world/national-security-adviser-mike-waltz-using-signal-day-before-he-was-ousted-by-donald-trump-9025760" rel="dofollow noopener" target="_blank">Caught on camera! Mike Waltz photographed using Signal the day before he was ousted by Trump - Who was he texting?</a>
The administration&rsquo;s full budget, with more detailed agency-by-agency plans, is expected later this month.

World: US President Donald Trump has unveiled a bold new budget proposal that aims to slash federal government spending by over $160 billion.

President Donald Trump has unveiled a bold new budget proposal that aims to slash federal government spending by over $160 billion, targeting a wide range of non-defence programmes while keeping military funding largely unchanged. The move has already stirred unrest among Republicans in Congress, who are growing uneasy about the scale of the cuts. What all is facing cuts in Trump's budget proposal? The proposed 2026 budget, often referred to as a "skinny budget", outlines sweeping reductions to domestic spending. Key areas facing cuts include: Public health: Millions would be stripped from agencies like the National Institutes of Health and the CDC. Education: Grants supporting low-income students, teacher training, and preschool development could be axed. Environment: Environmental Protection Agency programmes—particularly those linked to environmental justice—are in the crosshairs. Housing and labour: The Departments of Housing and Urban Development, the Interior, and Labour could each lose over 30% of their current funding. Foreign aid: USAID and the U.S. Institute of Peace may be eliminated entirely. Scientific research: NASA’s space science initiatives and funding for the International Space Station would see major reductions. At the same time, the Trump administration wants increased investment in border security, rail and air safety, and law enforcement. Also read: ‘Dealmaker in chief’ or dealbreaker? Is Trump walking away from Ukraine peace talks after sealing key minerals deal? How are GOP and Democrats reacting? The reaction on Capitol Hill has been swift—and mixed. Senate Appropriations Chair Susan Collins (R-Maine) criticised the proposal for lacking detail and for holding defence spending flat at $893 billion. “I have serious objections to the proposed freeze in our defence funding,” she said, adding that cuts to biomedical research and support for low-income households were also deeply concerning. Former GOP Senate leader Mitch McConnell, now leading the Senate’s defence funding panel, echoed those concerns. He accused the White House of using “OMB accounting gimmicks” and warned that the proposed defence budget was “not a substitute for full-year appropriations.” Also read: Donald Trump's 'I'd like to be pope' breaks internet as world awaits new Vatican head - Video Senate Armed Services Chair Roger Wicker (R-Miss.) added that the proposal would “shred to the bone our military capabilities.” House Republicans have been more cautious. House Appropriations Chair Tom Cole (R-Okla.) said lawmakers had “a better understanding of what can pass and what can’t” than the administration. Could Congress push back? Although Congress often sets its own funding priorities, Trump’s administration is signalling that it may withhold funding lawmakers approve. A senior White House official did not rule out using “impoundment” powers to block spending decisions by Congress. Also read: ‘Doesn’t compare’: Mike Waltz’s UN posting is a demotion, not a promotion, says the guy who’s held both jobs This sets the stage for a clash between the White House and Capitol Hill, especially with Republicans needing some Democratic votes to pass any budget. Without bipartisan support, the risk of a government shutdown increases, with a deadline looming on 30 September. What are Democrats saying? Democrats have come out strongly against the proposed cuts. Senate Minority Leader Chuck Schumer called Trump’s budget “a betrayal of working people” and “morally bankrupt.” He pledged to oppose the plan with full force. With memories of the March spending battle still fresh, Democrats are under pressure to resist further compromises. What does the budget really mean? While presidential budgets are typically symbolic, this year’s proposal has more weight. Trump has already frozen billions in spending without Congress’ approval, drawing multiple lawsuits and watchdog investigations. This budget signals how aggressively he intends to reshape government spending. It also reflects Trump’s broader political goals. White House budget director Russ Vought framed the proposal as a push to return power to states and families. “The Federal Government has intruded on matters best left to American families,” he wrote. Also read: Caught on camera! Mike Waltz photographed using Signal the day before he was ousted by Trump - Who was he texting? The administration’s full budget, with more detailed agency-by-agency plans, is expected later this month.

Trump’s 'skinny budget' slashes $163 billion from federal programs, even his own party is alarmed - Here's what it means

Hashim Musa, a former elite commando from Pakistan, has been identified as one of the four terrorists involved in the Pahalgam terror attack. As further details emerge from the investigation, more evidence of Pakistan's involvement in the tragic attack on April 22, which resulted in the deaths of 26 unarmed civilians, becomes evident.

India finds proof of Pak mastermind behind Pahalgam barbarity

South Africa is facing a potential constitutional crisis with the top governing body of the ruling African National Congress calling for a fresh look at its coalition alliance. This comes after snap divisions emerged with its main alliance partner, Democratic Alliance, during a crucial vote on the national budget. The ANC wants to review its coalition deal within 5 days to conclude the budget negotiations. The DA, which is now in alliance with the ANC, has been a traditional rival of the ANC. It only voted against an increase in value-added tax that was a key part of the budget but is also seeking a cut in government spending across all departments. Watch to know more!

South Africa: ANC set 5-day deadline to conclude negotiations on budget

South Africa: ANC sets 5-day deadline to conclude negotiations on budget

South Africa's government has passed a contentious budget, but key coalition partners, including the EFF and MK, have rejected the fiscal framework. Tensions rise as the proposed VAT increase sparks dissent. Meanwhile, the nation faces a $3.3 billion fiscal gap after the U.S., under President Trump, halted HIV/AIDS funding. Watch to know more!

South African budget vote passes but key coalition partner dissents

South Africa passes controversial budget amid coalition rift

South Africa’s finance minister proposed scaling back tax increases and curbing spending in a bid to resolve a standoff over the budget in the nation’s fractious governing alliance. Watch this report for more details!

South Africa Budget: South Africa's VAT hike plan faces strong opposition, budget remains stuck

South Africa proposes smaller VAT hike to end budget impasse

Karnataka chief minister Siddaramaiah on Friday faced fierce criticism by the BJP as he presented the state budget having multiple pies for the Muslim community. In a blazing attack at the Congress leader, who presented his record 16th budget, the opposition BJP called the fiscal plan a "modern Muslim League budget".

BJP: Karnataka budget allocations unfair and unconstitutional

Hundreds of scientists, researchers, and former federal employees have taken to the streets to protest against the Trump administration's budget cuts to scientific research. With over 150 rallies expected across different locations, protesters are demanding an end to censorship and greater funding for critical research. The administration has been accused of stifling scientific progress by slashing budgets, sparking nationwide outrage.

USA: Mass protests erupt over Trump’s research budget cuts

Hong Kong is facing its toughest fiscal test in three decades, with annual deficits exceeding $20 billion in three of the past four years. The city’s finance chief, Paul Chan, has announced a plan to restore fiscal balance by mid-2027. The government will cut recurrent spending by 7%. The government has also announced plans to slash 10,000 civil service jobs.

Hong Kong aims to cut spending by 7% to balance budget

Businesses across the UK are facing significant challenges as they prepare for a tax hike, with one in four companies planning to lay off staff. This marks the highest proportion of employers considering redundancies in the past decade, excluding the pandemic.

UK Chancellor's budget spurs job cuts & investment delays

Sri Lanka’s economy is projected to grow by 5% in 2025, according to President Anura Dissanayake. He presented the country’s first full-year budget under the national people’s power government. This budget is a crucial step in Sri Lanka's post-crisis recovery, with a primary focus on fiscal discipline and long-term stability. The government is targeting a budget deficit of 6.7% of GDP, slightly reduced from 6.8% in 2024.

Sri Lanka’s 2025 budget focuses on recovery

French Prime Minister François Bayrou narrowly escapes a no-confidence vote in the National Assembly, following controversy over the government's proposed budget. The vote comes after heated debates and opposition concerns regarding fiscal policies and government spending.

French PM François Bayrou invokes article 49.3 to force budget through without vote

French PM François Bayrou survives no-confidence vote amid budget controversy

Finance Minister Nirmala Sitharaman tabled the union budget 2025-26 on Saturday. Like other budgets, this budget also garnered major attention on social media. The one major announcement on everybody's mind was the increase in the nil tax slab from ₹7 lakhs to ₹12 lakhs.&nbsp;
New Tax regime
₹0-4 lakh -- Nil ₹4-8 lakh -- 5% ₹8-12 lakh -- 10% ₹16-20 lakh -- 20% ₹20-24 lakh -- 25% Above ₹24 lakh -- 30%
To calculate the tax rebate on incomes of ₹13 lakhs, ₹15 lakhs, and ₹20 lakhs, here are the numbers:
Income = ₹13,00,000
₹0&ndash;4 lakh: 0% = ₹0 ₹4&ndash;8 lakh (₹4 lakh): 5% of ₹4,00,000 = ₹20,000 ₹8&ndash;12 lakh (₹4 lakh): 10% of ₹4,00,000 = ₹40,000 ₹12&ndash;13 lakh (₹1 lakh): 20% of ₹1,00,000 = ₹20,000
Total Tax = ₹0 + ₹20,000 + ₹40,000 + ₹20,000 = ₹80,000
 Income = ₹15,00,000
₹0&ndash;4 lakh: 0% = ₹0 ₹4&ndash;8 lakh (₹4 lakh): 5% of ₹4,00,000 = ₹20,000 ₹8&ndash;12 lakh (₹4 lakh): 10% of ₹4,00,000 = ₹40,000 ₹12&ndash;15 lakh (₹3 lakh): 20% of ₹3,00,000 = ₹60,000
Total Tax = ₹0 + ₹20,000 + ₹40,000 + ₹60,000 = ₹1,20,000
 Income = ₹20,00,000
₹0&ndash;4 lakh: 0% = ₹0 ₹4&ndash;8 lakh (₹4 lakh): 5% of ₹4,00,000 = ₹20,000 ₹8&ndash;12 lakh (₹4 lakh): 10% of ₹4,00,000 = ₹40,000 ₹12&ndash;16 lakh (₹4 lakh): 20% of ₹4,00,000 = ₹80,000 ₹16&ndash;20 lakh (₹4 lakh): 25% of ₹4,00,000 = ₹1,00,000
Total Tax = ₹0 + ₹20,000 + ₹40,000 + ₹80,000 + ₹1,00,000 = ₹2,40,000
The new tax bill will be tabled next week. While everybody knows about the latest changes, other major announcements have also been made regarding direct income tax.
<h2>TDS &amp; TCS simplifications</h2>
To simplify tax compliance, the government has announced major reforms. This includes increasing the TDS threshold on rent from ₹2.40 lakhs to ₹6 lakhs per year and raising the TCS exemption limit on Liberalised Remittance Scheme (LRS) transactions from ₹7 lakhs to ₹10 lakhs. TCS has also been removed from education-related remittances in education loans. Special focus is on senior citizens. The tax deduction limit on interest income has been doubled to reduce the tax burden among retirees. Tax exemption has also been provided on old National Savings Scheme (NSS) accounts.
<h2>Deduction for NPS Vatsalya Scheme</h2>
Budget 2025 extends tax benefits to the newly launched NPS Vatsalya Scheme. This new scheme allows parents and guardians to open and manage an NPS account for minors for minors until they reach the age of 18 years. The contributions would be eligible for deduction under Sector 80CCD(1B) up to a maximum of ₹50,000. The scheme also allows for partial withdrawals under special circumstances, with no tax deduction for withdrawals less than 25 per cent of the contribution amount.
<h2>Rationalisation of taxation of ULIPs</h2>
Unit-linked insurance plans serve a dual purpose: they are life insurance policies and investment opportunities. Earlier, ULIPs were taxed as income from other sources, with 30 per cent rates. Under the new provisions, ULIPs with annual premiums above ₹2.5 lakhs will be taxed as capital gains instead of income. Long-term capital gains beyond 1 year will be taxed at 12.5 per cent.
<h2>Other notable provisions</h2>
The time limit to file an updated return has been extended from 2 years to 4 years. Rules have also been simplified for self-occupied properties. The annual value of a self-occupied property will be considered as nil.&nbsp;

Business & Economy, The one major announcement on everybody's mind was the increase in the nil tax slab from ₹7 lakhs to ₹12 lakhs. The new tax bill will be tabled next week.

Finance Minister Nirmala Sitharaman tabled the union budget 2025-26 on Saturday. Like other budgets, this budget also garnered major attention on social media. The one major announcement on everybody's mind was the increase in the nil tax slab from ₹7 lakhs to ₹12 lakhs. New Tax regime ₹0-4 lakh -- Nil ₹4-8 lakh -- 5% ₹8-12 lakh -- 10% ₹16-20 lakh -- 20% ₹20-24 lakh -- 25% Above ₹24 lakh -- 30% To calculate the tax rebate on incomes of ₹13 lakhs, ₹15 lakhs, and ₹20 lakhs, here are the numbers: Income = ₹13,00,000 ₹0–4 lakh: 0% = ₹0 ₹4–8 lakh (₹4 lakh): 5% of ₹4,00,000 = ₹20,000 ₹8–12 lakh (₹4 lakh): 10% of ₹4,00,000 = ₹40,000 ₹12–13 lakh (₹1 lakh): 20% of ₹1,00,000 = ₹20,000 Total Tax = ₹0 + ₹20,000 + ₹40,000 + ₹20,000 = ₹80,000 Income = ₹15,00,000 ₹0–4 lakh: 0% = ₹0 ₹4–8 lakh (₹4 lakh): 5% of ₹4,00,000 = ₹20,000 ₹8–12 lakh (₹4 lakh): 10% of ₹4,00,000 = ₹40,000 ₹12–15 lakh (₹3 lakh): 20% of ₹3,00,000 = ₹60,000 Total Tax = ₹0 + ₹20,000 + ₹40,000 + ₹60,000 = ₹1,20,000 Income = ₹20,00,000 ₹0–4 lakh: 0% = ₹0 ₹4–8 lakh (₹4 lakh): 5% of ₹4,00,000 = ₹20,000 ₹8–12 lakh (₹4 lakh): 10% of ₹4,00,000 = ₹40,000 ₹12–16 lakh (₹4 lakh): 20% of ₹4,00,000 = ₹80,000 ₹16–20 lakh (₹4 lakh): 25% of ₹4,00,000 = ₹1,00,000 Total Tax = ₹0 + ₹20,000 + ₹40,000 + ₹80,000 + ₹1,00,000 = ₹2,40,000 The new tax bill will be tabled next week. While everybody knows about the latest changes, other major announcements have also been made regarding direct income tax. TDS & TCS simplifications To simplify tax compliance, the government has announced major reforms. This includes increasing the TDS threshold on rent from ₹2.40 lakhs to ₹6 lakhs per year and raising the TCS exemption limit on Liberalised Remittance Scheme (LRS) transactions from ₹7 lakhs to ₹10 lakhs. TCS has also been removed from education-related remittances in education loans. Special focus is on senior citizens. The tax deduction limit on interest income has been doubled to reduce the tax burden among retirees. Tax exemption has also been provided on old National Savings Scheme (NSS) accounts. Deduction for NPS Vatsalya Scheme Budget 2025 extends tax benefits to the newly launched NPS Vatsalya Scheme. This new scheme allows parents and guardians to open and manage an NPS account for minors for minors until they reach the age of 18 years. The contributions would be eligible for deduction under Sector 80CCD(1B) up to a maximum of ₹50,000. The scheme also allows for partial withdrawals under special circumstances, with no tax deduction for withdrawals less than 25 per cent of the contribution amount. Rationalisation of taxation of ULIPs Unit-linked insurance plans serve a dual purpose: they are life insurance policies and investment opportunities. Earlier, ULIPs were taxed as income from other sources, with 30 per cent rates. Under the new provisions, ULIPs with annual premiums above ₹2.5 lakhs will be taxed as capital gains instead of income. Long-term capital gains beyond 1 year will be taxed at 12.5 per cent. Other notable provisions The time limit to file an updated return has been extended from 2 years to 4 years. Rules have also been simplified for self-occupied properties. The annual value of a self-occupied property will be considered as nil.

India Budget 2025: Tax relief, TCS, TDS & more

Echoing Abraham Lincoln's iconic phrase, India's Finance Minister Nirmala Sitharaman on Sunday (Feb 2) said that the Union Budget is "by the people, for the people, of the people".&nbsp;
She highlighted that Prime Minister Narendra Modi strongly backed the idea of slashing taxes for the middle class but it took some time to convince the bureaucrats to get on board.
"We have heard the voice of the middle class who were voicing their concerns about their aspirations not being met despite being diligent taxpayers," Sitharaman told news agency PTI.
The Finance Minister, in her Budget speech on Saturday (Feb 1), announced an increase in the personal income tax threshold to Rs 12 lakh, a substantial jump from the previous Rs 7 lakh.&nbsp;
Additionally, Sitharaman introduced a rejig in tax brackets that will enable individuals earning above Rs 12 lakh to save up to Rs 1.1 lakh.
"I think the prime minister put it succinctly, he said it's the people's Budget, it is the Budget which the people wanted."
On being asked to describe the essence of the budget, Sitharaman eloquently quoted Abraham Lincoln stating, "As they say in democracy in Abraham Lincoln's words, it is Budget by the people, of the people for the people."
Sitharaman said the new rates would "substantially reduce the taxes of the middle class and leave more money in their hands, boosting household consumption, savings and investment".
<a href="https://www.wionews.com/india-news/union-budget-2025-fm-sitharaman-vows-to-implement-reforms-across-six-vital-domains-8680302">Also read: Union Budget 2025: FM Sitharaman vows reforms across six vital domains, from taxes to regulations</a>
<h2>'Everyone gets its due grant,' Sitharaman on Bihar and Delhi</h2>
Sitharaman, responding to the Opposition's criticism over announcing a bonanza in the budget only for the state of Bihar, said that the other parties were picking this up only "for want of criticism".
&ldquo;For want of criticism, they (Opposition) are picking this up. These are lame and lazy quick way to look at budget. Everyone gets its due grant. I want them to go through the details and then come back," she said.
Sitharaman in her record eighth consecutive Budget on Saturday (Feb 1), pledged to implement reforms across six vital sectors: taxation, urban development, mining, financial sector, power and regulatory reforms.
(With inputs from agencies)&nbsp;

India news: On being asked to describe the essence of the budget, Sitharaman eloquently quoted Abraham Lincoln stating, "As they say in democracy in Abraham Lincoln's words, it is Budget by the people, of the people for the people."

Echoing Abraham Lincoln's iconic phrase, India's Finance Minister Nirmala Sitharaman on Sunday (Feb 2) said that the Union Budget is "by the people, for the people, of the people". She highlighted that Prime Minister Narendra Modi strongly backed the idea of slashing taxes for the middle class but it took some time to convince the bureaucrats to get on board. "We have heard the voice of the middle class who were voicing their concerns about their aspirations not being met despite being diligent taxpayers," Sitharaman told news agency PTI. The Finance Minister, in her Budget speech on Saturday (Feb 1), announced an increase in the personal income tax threshold to Rs 12 lakh, a substantial jump from the previous Rs 7 lakh. Additionally, Sitharaman introduced a rejig in tax brackets that will enable individuals earning above Rs 12 lakh to save up to Rs 1.1 lakh. "I think the prime minister put it succinctly, he said it's the people's Budget, it is the Budget which the people wanted." On being asked to describe the essence of the budget, Sitharaman eloquently quoted Abraham Lincoln stating, "As they say in democracy in Abraham Lincoln's words, it is Budget by the people, of the people for the people." Sitharaman said the new rates would "substantially reduce the taxes of the middle class and leave more money in their hands, boosting household consumption, savings and investment". Also read: Union Budget 2025: FM Sitharaman vows reforms across six vital domains, from taxes to regulations 'Everyone gets its due grant,' Sitharaman on Bihar and Delhi Sitharaman, responding to the Opposition's criticism over announcing a bonanza in the budget only for the state of Bihar, said that the other parties were picking this up only "for want of criticism". “For want of criticism, they (Opposition) are picking this up. These are lame and lazy quick way to look at budget. Everyone gets its due grant. I want them to go through the details and then come back," she said. Sitharaman in her record eighth consecutive Budget on Saturday (Feb 1), pledged to implement reforms across six vital sectors: taxation, urban development, mining, financial sector, power and regulatory reforms. (With inputs from agencies)

'Budget is by the people for the people,' says FM Sitharaman citing Abraham Lincoln

Union Budget 2025 is here, and one of the biggest announcements is the income tax exemption for individuals earning up to Rs 12 lakh. This year's budget also brings a focus on boosting sectors like technology and agriculture. We bring you the first reactions from business owners and the public as they weigh in on the new fiscal policies.

First Reactions To Budget 2025: Income Tax Relief Up To 12 Lakh & Economic Focus | WION Vibe Check

We cut through the noise and dive straight into India’s budget. We give you the key highlights, expert reactions, the hits & the misses to decode what the budget means for your money. So, let’s get started!

Budget 2025: Key Highlights, Expert Analysis & The Hits & Misses Decoded

Indian Finance Minister Nirmala Sitharaman presented India's Union Budget for 2025-26 on Feb 1st. These are the major highlights you cannot miss. Watch in for more details!

Budget 2025 boosts India's AI ambitions

Finance Minister Nirmala Sitharaman has placed the middle class at the centre of Budget 2025, offering a significant tax relief that will ease financial burdens on millions of taxpayers. &nbsp;
The highlight of this year&rsquo;s budget is zero income tax for earnings up to ₹12 lakh. For salaried individuals, the exemption limit extends to ₹12.75 lakh, factoring in the ₹75,000 standard deduction. This announcement is expected to boost disposable income, encourage spending, and provide much-needed financial relief.
<img class="WACImage SCXW118161244 BCX8" unselectable="on" src="https://img-cdn.thepublive.com/fit-in/580x348/filters:format(webp)/wion/media/post_attachments/bdb7e82a-115.png" srcset="">
<div class="OutlineElement Ltr SCXW206877242 BCX8">
<h2 class="Paragraph SCXW206877242 BCX8" paraid="1616019033" paraeid="{ea5885df-2ad6-41d7-86a3-41c6350685ac}{81}">A shift in capital expenditure strategy&nbsp;</h2>
</div>
<div class="OutlineElement Ltr SCXW206877242 BCX8">
In previous budgets, Sitharaman prioritised large capital expenditures, focusing on infrastructure projects such as railways, highways, and urban development. However, this year&rsquo;s budget takes a more measured approach. The government has allocated ₹11.2 lakh crore for capital expenditure in 2025-26, a modest increase from ₹11.1 lakh crore in the previous budget. This is a notable slowdown compared to the 11% rise in the last budget, signalling a shift towards balancing growth with fiscal prudence.&nbsp;
</div>
<div class="OutlineElement Ltr SCXW206877242 BCX8">
<h2 class="Paragraph SCXW206877242 BCX8" paraid="1654345592" paraeid="{ea5885df-2ad6-41d7-86a3-41c6350685ac}{93}">Maintaining fiscal discipline&nbsp;</h2>
</div>
<div class="OutlineElement Ltr SCXW206877242 BCX8">
Sitharaman has maintained her reputation for financial prudence by keeping the fiscal deficit at 4.4% for the next financial year. This is lower than the expected 4.5%, demonstrating the government&rsquo;s commitment to economic stability while ensuring that resources are allocated effectively. The decision to moderate capital expenditure growth while expanding tax relief highlights the government&rsquo;s strategy of supporting economic activity without compromising fiscal discipline.&nbsp;
</div>
<div class="OutlineElement Ltr SCXW206877242 BCX8">
<h2 class="Paragraph SCXW206877242 BCX8" paraid="341835873" paraeid="{ea5885df-2ad6-41d7-86a3-41c6350685ac}{105}">Focus on Viksit Bharat roadmap&nbsp;</h2>
</div>
<div class="OutlineElement Ltr SCXW206877242 BCX8">
While focusing on tax relief and economic stability, the Viksit Bharat 2047 vision remains a key priority. Sitharaman has detailed plans to rejuvenate key sectors, particularly agriculture and small industries, recognising them as engines of economic growth. The budget also prioritises human capacity building, with a strong emphasis on skill development and workforce training. These initiatives are expected to enhance employability, address job creation concerns, and strengthen the long-term growth trajectory of the economy.&nbsp;
</div>
<div class="OutlineElement Ltr SCXW206877242 BCX8">
<h2 class="Paragraph SCXW206877242 BCX8" paraid="1627843357" paraeid="{ea5885df-2ad6-41d7-86a3-41c6350685ac}{117}">Challenges in the economic landscape&nbsp;</h2>
</div>
<div class="OutlineElement Ltr SCXW206877242 BCX8">
This budget comes at a time when India&rsquo;s economy is facing multiple challenges. Consumer demand remains subdued, inflation is impacting household budgets, and GDP growth is showing signs of slowdown. The Economic Survey estimates a growth range of 6.3% to 6.8% in FY26, which is below the pace required to achieve the Viksit Bharat 2047 target. The report stresses the importance of land and labour reforms to accelerate economic expansion.&nbsp;
</div>
<div class="OutlineElement Ltr SCXW206877242 BCX8">
<h2 class="Paragraph SCXW206877242 BCX8" paraid="501519319" paraeid="{ea5885df-2ad6-41d7-86a3-41c6350685ac}{129}">Balancing growth with sustainability&nbsp;</h2>
</div>
<div class="OutlineElement Ltr SCXW206877242 BCX8">
India continues to be one of the fastest-growing major economies, but there are clear signs of moderation. The government remains committed to achieving an 8% annual growth rate, which is considered crucial for long-term economic prosperity. The projected growth rate for FY25-26 is 6.4%, compared to 8.2% in FY23-24, indicating the need for policy measures that drive sustainable growth.&nbsp;
</div>
<div class="OutlineElement Ltr SCXW206877242 BCX8">
Budget 2025 strikes a careful balance between taxpayer relief, economic expansion, and fiscal discipline. The higher tax exemption limit will benefit millions of middle-class families, while a measured increase in capital spending ensures financial stability. The government&rsquo;s continued focus on employment generation, skill development, and sectoral growth aligns with its long-term vision for a stronger, self-reliant India.&nbsp;
</div>

Business & Economy, Increasing income tax limit is expected to boost disposable income, encourage spending, and provide much-needed financial relief.

Finance Minister Nirmala Sitharaman has placed the middle class at the centre of Budget 2025, offering a significant tax relief that will ease financial burdens on millions of taxpayers. The highlight of this year’s budget is zero income tax for earnings up to ₹12 lakh. For salaried individuals, the exemption limit extends to ₹12.75 lakh, factoring in the ₹75,000 standard deduction. This announcement is expected to boost disposable income, encourage spending, and provide much-needed financial relief. A shift in capital expenditure strategy In previous budgets, Sitharaman prioritised large capital expenditures, focusing on infrastructure projects such as railways, highways, and urban development. However, this year’s budget takes a more measured approach. The government has allocated ₹11.2 lakh crore for capital expenditure in 2025-26, a modest increase from ₹11.1 lakh crore in the previous budget. This is a notable slowdown compared to the 11% rise in the last budget, signalling a shift towards balancing growth with fiscal prudence. Maintaining fiscal discipline Sitharaman has maintained her reputation for financial prudence by keeping the fiscal deficit at 4.4% for the next financial year. This is lower than the expected 4.5%, demonstrating the government’s commitment to economic stability while ensuring that resources are allocated effectively. The decision to moderate capital expenditure growth while expanding tax relief highlights the government’s strategy of supporting economic activity without compromising fiscal discipline. Focus on Viksit Bharat roadmap While focusing on tax relief and economic stability, the Viksit Bharat 2047 vision remains a key priority. Sitharaman has detailed plans to rejuvenate key sectors, particularly agriculture and small industries, recognising them as engines of economic growth. The budget also prioritises human capacity building, with a strong emphasis on skill development and workforce training. These initiatives are expected to enhance employability, address job creation concerns, and strengthen the long-term growth trajectory of the economy. Challenges in the economic landscape This budget comes at a time when India’s economy is facing multiple challenges. Consumer demand remains subdued, inflation is impacting household budgets, and GDP growth is showing signs of slowdown. The Economic Survey estimates a growth range of 6.3% to 6.8% in FY26, which is below the pace required to achieve the Viksit Bharat 2047 target. The report stresses the importance of land and labour reforms to accelerate economic expansion. Balancing growth with sustainability India continues to be one of the fastest-growing major economies, but there are clear signs of moderation. The government remains committed to achieving an 8% annual growth rate, which is considered crucial for long-term economic prosperity. The projected growth rate for FY25-26 is 6.4%, compared to 8.2% in FY23-24, indicating the need for policy measures that drive sustainable growth. Budget 2025 strikes a careful balance between taxpayer relief, economic expansion, and fiscal discipline. The higher tax exemption limit will benefit millions of middle-class families, while a measured increase in capital spending ensures financial stability. The government’s continued focus on employment generation, skill development, and sectoral growth aligns with its long-term vision for a stronger, self-reliant India.

Budget 2025: No tax up to Rs 12 lakh, focus on stability and long-term growth

budget

Budget, News on Budget, stories on Budget, articles on Budget, Budget stories at Wion, Budget news, Budget latest news