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Below The Quote on Budget by Karthick jonagadla, smallcase manager and founder and CEO of Quantace Research

“The Union Budget 2025 has introduced significant tax relief measures to support the middle class, particularly through revised income tax slabs. Individuals earning up to Rs.12.75 lakh will now enjoy a 0% income tax rate, with rates progressively increasing to 30% for incomes above Rs.24 lakh. This adjustment is expected to benefit a substantial portion of taxpayers, boosting disposable income and driving consumer spending.

The estimated total tax revenue forgone due to these changes stands at approximately Rs.1.5 lakh crore, which includes targeted exemptions in healthcare and agriculture. Despite these concessions, the government remains committed to fiscal prudence, maintaining a fiscal deficit target of 4.8% of GDP for FY 2024-25. This responsible approach ensures that central government debt continues its downward trajectory, reducing from 59.3% in 2023-24 to 58.5% in 2024-25.

Additionally, the budget projects a nominal growth of 10.5% in Total Receipts (excluding borrowings), reaching approximately Rs.31.47 lakh crore for the upcoming fiscal year. In a notable reform, the FDI limit in the insurance sector has been raised from 74% to 100%, aiming to attract greater foreign investment and foster competition within this crucial industry. Furthermore, the government is expected to proceed with strategic disinvestment in public sector undertakings (PSUs), reinforcing its commitment to long-term fiscal sustainability. The government's disciplined approach to balancing economic growth with fiscal responsibility is commendable.”

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