Particle.news

Download on the App Store

Union Budget 2025 Increases Tax Exemption Limit, Faces Criticism Over Lack of Job Creation

The budget introduces significant income tax reforms and credit measures but is criticized for insufficient focus on unemployment and long-term economic growth.

  • The income tax exemption limit has been raised from ₹7 lakh to ₹12 lakh, benefiting middle-class taxpayers, but some exemptions under the old regime are no longer available.
  • Credit facilities for farmers and MSMEs have been expanded, with increased guarantees to support small businesses and agriculture growth.
  • Critics argue the budget lacks robust measures to address unemployment and wage stagnation, with no major plans for job creation or real income growth.
  • The fiscal deficit target has been reduced to 4.8%, but concerns remain over high borrowing and limited capital expenditure to drive long-term growth.
  • While the budget has been praised for tax relief and healthcare initiatives, critics highlight its regional focus on states like Bihar and limited support for others such as Kerala and Maharashtra.
Hero image