Former Union finance minister and senior Congress leader P Chidambaram on Saturday hit out at the Union Budget presented by Nirmala Sitharaman, claiming that most of the new schemes are “beyond capacity” of the government.
“Budget is full of new schemes, programmes; many of these beyond capacity of this govt,” PTI quoted Chidambaram as saying.
“Takeaway from Budget 2025-26 is that BJP wooing tax-paying middle-class, Bihar electorate. Bureaucracy will be happy with this Budget. The government’s stranglehold on people’s activities is getting tighter,” Chidambaram, who served as finance minister in the governments headed by
Dr Manmohan Singh, Inder Kumar Gujral and HD Deve Gowda, said.
“Economy will trudge along on old path, deliver no more than usual 6% or 6.5% growth in 2025-26,” the veteran Congressman said.
Massive relief for Indian middle class
In her eighth consecutive Budget speech, Nirmala Sitharaman exempted annual income of up to ₹12 lakh from income tax and rejigged tax slabs.
“I am now happy to announce that there will be no income tax payable up to income of ₹12 lakh (i.e. average income of ₹1 lakh per month other than special rate income such as capital gains) under the new regime,” the finance minister said.
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“The new structure will substantially reduce the taxes of the middle class and leave more money in their hands, boosting household consumption, savings and investment,” Sitharaman said in her Budget speech.
As per the rejig, for people earning more than ₹12 lakh per annum, there will be nil tax for income up to ₹4 lakh, 5 per cent for income between ₹4 and 8 lakh, 10 per cent for ₹8-12 lakh, 15 per cent for ₹12-16 lakh.
A 20 per cent income tax will be levied on income between ₹16 and 20 lakh, 25 per cent on ₹20-24 lakh and 30 per cent above ₹24 lakh per annum.