No adjustments have been made to the rates of direct and indirect taxes in the current budget. The government has decided to withdraw income tax claims up to ₹25,000 for the period up to 2009-10 and ₹10,000 for the years 2010-11 to 2014-15, providing relief to approximately one crore taxpayers.
A new initiative will be introduced to assist the middle class residing in rented accommodations to either purchase or construct their own homes. Additionally, tax benefits for start-ups and investments by sovereign wealth or pension funds have been extended by one year until March 31, 2025.
Capital expenditure has been increased by 11%, reaching ₹11.11-lakh crore. The fiscal deficit projection for FY25 stands at 5.1%, which is lower than the revised estimate of 5.8% in FY24. The government plans to borrow ₹14.13-lakh crore in the next fiscal year, a reduction from ₹15.43 lakh crore in FY24.
The nominal GDP growth for FY25 is anticipated to be 10.5%. The target for disinvestment from central public sector enterprises (CPSEs) is set at ₹50,000 crore for FY25, an increase from ₹30,000 crore in FY24. The gross tax revenue goal for FY25 has been raised by 11.46% to ₹38.31-lakh crore, compared to ₹34.37 lakh crore in FY24.
The direct tax collection target is established at ₹21.99-lakh crore, while the indirect tax target is set at ₹16.22-lakh crore. Additionally, the government has announced the release of a white paper addressing the economic mismanagement prior to 2014.
To foster the next phase of reforms, the government plans to unveil initiatives in consultation with states and various stakeholders. Furthermore, a high-powered panel will be formed to address challenges related to population growth and demographic changes.
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