Budget 2025 Explained in HINDI And English | Myindia
Mrs. Nirmala, middle class is crying. What if they got a little help? No income tax payable up to income of 12 lakh rupees. What, what, what? Say it again. No tax payable by them. That means even if they earn 1 lakh per month, there is no tax in India. Middle class would have never felt so happy. This is huge. And such things happen in India’s budget. Will the tax be less next year?
If we pay so much tax, where does the money go?
Tax is the theft of your money. If this question comes to your mind, then this blog is for you. Because today we will understand the budget of India. We will understand whether the tax burden of
the middle class has been reduced or increased.
What? Budget?
This is not my cup of tea. So how do we understand the budget?
There is a misconception in the country that budget means big numbers. But the truth is that budget is a story. India is a big family. And how this family runs their house is the story of our budget. That’s why in this blog , we will focus less on big numbers and more on the story. So that everyone from an 8-year-old to an 80-year-old can understand that how India works.
Your time is valuable. And
if you are interested only in numbers. Then you can go to this timestamp. And understand the numbers of this financial year. But if you want to understand the concept. Then don’t skip the blog.
6 areas were focused on in the budget
. Agriculture, taxation, power, urban development, mining and regulation.
The most interesting part here is taxation was left for the end. But let’s start with that. In the new income tax scheme,
the new slabs will be something like this. 0 rupees to 4 lakh rupees, nil. 4 lakh to 8 lakh, 5%. 8 lakh to 12 lakh, 10%. 12 lakh to 16 lakh, 15%. 16 lakh to 20 lakh, 20%. 20 lakhs to 24 lakhs, 25%. And 30% above 24 lakhs.
Wait, wait, wait. At the start of the blog, I said that there is no tax till 12 lakh rupees. So what is the meaning of these tax slabs?
Actually, through rebates, if your normal income, i.e. your salary or business profit is within 12 lakhs, then you will have to pay zero tax. But this will only happen in the new tax regime.
The government wants people to leave the old tax regime and adopt the new tax regime.
India has two tax regimes. One is the old tax regime. Where you get deductions on different expenses and incomes. That is, you can reduce your income and tax is imposed on it according to this tax slab.
Then there is the new tax regime. Where you do not get any option to reduce income. You do not get deductions. But in return, the tax rate is reduced.
Now, according to today’s announcement, these are the slabs of the new tax regime.
But Mr. Nirmala had said that tax will not be imposed till 12 lakh rupees. Yes, that’s because of rebates. When you file the income tax return, then the return will calculate your tax. But when it comes to payment, if your income is below 12 lakh rupees, then your tax amount will automatically become zero.
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This is for regular income .  not for capital gains income.   This tax that you have reduced is called a rebate. Rebate means a discount or a cashback. But if your income is above 12 lakhs and you choose the new tax regime, you will have to pay all taxes according to this tax slab. That is, these tax slabs will apply to those people who earn more than 12 lakhs a year. They will not get rebates. And they will pay tax on their income according to these tax slabs. This is the chart on the official website of income tax.
link You can read it.
How will India benefit from reducing taxes?
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In the beginning of the budget, our finance minister talked about increasing the purchasing power of the middle class. This will save more disposable income in people’s hands. That is, people will be able to spend more. Consumption will increase, business will get a boost. And overall, an optimistic environment will be created, which will lead to GDP growth.
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India has become an economic bright spot for the world. And the government’s indication is that these things should continue. A new income tax bill is coming, but next week. So we will all worship the same goddess for a week. If you liked this simple explanation, then write middle class is happy in the comments below. In a budget,
there is a focus on only 3 things.
1 How much money is India going to earn? 2 How much money is it going to spend? 3 what will our focus be on?
Income, expenses, and priorities. That’s it. If you understand these 3 things. Then you can understand India’s budget. It’s not a complicated thing. And you don’t need to be an account expert. Trust me, I am a CA. Understanding the budget is not rocket science. And we should be taught this in schools. Because the things happening in our family and budget are very similar. We believe that our country is a big family. And that’s why every member of the family should know. What is happening in the country. If the country is a big family. Then our government is our grandfather. Who takes all the decisions of the family. The head of a family is selected on the basis of seniority. But in a democracy, we choose our head through elections. Just like there are different sources of income for a family. They have their daily expenses. And every member of the family has some dreams. Similarly, income, expenses, and priorities are for every country. What are the sources of income for a family? Members’ salaries. Profit from the shop. If a house is given on rent, then its rent. Similarly, the most amount of money for a country comes as taxes. In which income tax, corporate tax, and GST are included. Similarly, if government companies like LIC, ONGC, and Coal India earn profit. Then they give the share of the profit to the government as a dividend.
So this is also the government’s income. Just like a family has expenses, the government also has. Just like you have to look after the house. You have to repair the broken roof. Similarly, the government has to build bridges. Railway tracks have to be repaired. A family has to focus on their children’s education. Similarly, the government has to invest in education. IITs have to be built. And some money has to be saved for our dreams and our future. Just like allocating money for ISRO’s missions. Every house has to have broadband internet. That’s why we have to build infrastructure, etc. This is what a budget is. Isn’t it easy? I think if we explain economics in every school in the same way. Then we can become better citizens. What do you think? Tell us in the comments.
Chapter 2 How is a budget made? In the first chapter, we understood what happens in a budget. This process looks easy, but it is a little complicated. Do you know why? Because a budget is an estimate. That is, the budget that will be made on 1 February 2025. From 1 April 2025 to 31 March 2026. How much will be the expenditure? How much will be the income? This is the estimate of these things. The government has to make an educated guess with the help of previous experiences and data. What will be the future? That’s why there is not a single figure in any budget document. There are estimates and actuals. The government tries to minimize the difference between actual and estimates. And this process takes 6 months. The first stage is the planning stage. Which started in September 2024. From September, various ministries of the Union Government make budgets for their departments. While making the budget, they talk to trade bodies, unions, and businesses. To guess how the next year will be. The second stage is the review stage. In the month of November, in the pre -budget meetings, the Department of Economic Affairs meets with various ministries. These estimates are evaluated by talking to economists, agricultural experts, and industry leaders. In the third stage, an economic survey is made around December. This economic survey is released on 31st January, one day before the release of the budget. This is a report card of last year. What was the inflation in the country? What is the data of unemployment? What are the achievements? What are the challenges? You can get answers to all these questions in this economic survey. If you are interested, the link to the economic survey is in the below. In the last stage, in January, when the budget is ready, what does the government do? They make Halwa. Literally. This is called Halwa Ceremony, which is a signal for the completion of the budget.
And after this, all those who make the budget are put in jail. And I am not joking. Those who were involved in making the budget, they are kept in a secure location and they are not allowed to talk to the to talk to the media. Because think, if the government is making a new tender, and this thing reaches the market in advance, then people will buy relevant stocks beforehand. And finally, every year, on the day of 1st February, the budget of the next financial year is presented in the parliament.
Chapter 3. The game of money. The big numbers of the budget are kept aside. And assume that the budget of India is only 100 rupees. And ask two simple questions. Where does 100 rupees come from? And where does 100 rupees go? Look at this chart. If the Indian government earns 100 rupees in a year, then 17 rupees comes from corporate tax, 22 rupees from income tax, and 18 rupees from GST. from non-tax receipts 9 rupees 4 rupees from customs, 5 rupees from union excise duty, 1 rupee from non-debt capital receipts. This big portion is left. These 24 rupees.
What is this?
Hold on. We will talk about these 24 rupees later. Now let’s see where these 100 rupees go. 22 rupees goes to state governments. 16 rupees goes to different schemes of the central government. 8 rupees goes to centrally sponsored schemes. 8 rupees is spent on national security and defence. Finance commission gets 8 rupees. Subsidies get 6 rupees. Pensions get 4 rupees. And the remaining expenses are 8 rupees. So what is this 20 rupees?
This is the interest of the loan, which was taken by the government in the previous years. For example, we had assumed that our incomes and expenses are equal. That is, 100 rupees each. But this is not realistic. Our expenses are much more than our incomes. And that is why we have to borrow money. If the government’s incomes are more than their expenses, then it is a surplus budget. When their incomes and expenses match, then it is a balanced budget. But when their expenses are much more than their incomes, then it is called a deficit budget. India presented a surplus budget in just one year after independence. The rest of the budgets have been deficit budgets. To fill the gap between income and expenses, the government issues different bonds. PPF, EPF, National Saving Certificate are schemes in which people like you and me invest. And this is our domestic debt. But why should we invest for free? We have to earn interest on this, right? That interest payment is seen here. This is 20 rupees. The largest portion of the government’s income is the loan. And similarly, the largest portion of the expenses is the loan. Is this positive or negative? Well, it depends on what we do with this money. Think about it. If your family takes a personal loan and goes on a foreign trip, or gets married in a grand manner, and then spends the rest of their life in lending loans, then that is bad financial planning. But if you take an education loan, or take a loan to buy a house, or start a new business, which will benefit you in the future, then that is good financial planning. This principle also works for the government. If we are spending money to build good roads, then it’s a good thing. If we are investing money in such missions, then it’s a good thing. If IITs are opening, airports are closing, then this is an investment in our future. But if government employees are only getting increased salaries to heat seats, and loans are being taken to fill the pockets of corrupt people, then will this country move forward? No. In every budget, my focus is on one figure, and that is Capital Expenditure. These are the expenses that make a country an asset. From the past few years, we can see that capital expenditure is increasing. This year, we will spend 11.21 lakh crores on different infrastructure projects. In 2025-2026, India is going to earn a total of 34.96 lakh crores. And the total expenses are going to be 50.65 lakh crores. The difference in this is that we will have to borrow 15.69 crores.
Chapter 4. Budget of this year. Our focus is on concepts, so that numbers are not just figures. Numbers should get some meaning. Now, let’s understand numbers with this knowledge. Let’s move on. The country talked about specific investment in three areas. And those areas are people, economy, and innovation.
Our finance minister called agriculture an engine of growth. Plans are being made to help 1.7 crore farmers in the country. 100 such districts will be identified where productivity is very low. And here, the focus will be on crop diversification and crop storage. Due to which, migration from villages to cities will be an option, not a necessity. Makhana is a hidden gem that is in demand all over the world. I saw an episode on Shark Tank US where the businessmen import Makhana from India. They add flavors to it and earn lakhs of dollars. Now, by focusing on Makhana, FPOs will be developed in India. And in this, the focus will be on Bihar. I feel the need here is that corruption should be in control. And all the money should be in making quality infrastructure. MSME is also a growth engine. MSME means Small and Medium Enterprises. We talk every year that we want to increase the contribution of the manufacturing sector. Manufacturing contributes only 15% in our country. The number of which has been talking about 25% for years. But this number is not going beyond 16-17%. Skilled labor is needed for manufacturing. And our labor is trying to make skilled labor from unskilled labor. That’s why 5 skilling centers are being built at the national level. In our budget, 10,000 crores have been set aside for startups. And special loans have been provided for women entrepreneurs for the first time. There is another untapped potential and that is footwear. Which has a market potential of 4 lakh crores. India wants to focus on our Made in India toys. There were talks of 50,000 Atal Tinkering Labs for education. Where children will be encouraged to experiment from school itself. Gig workers, i.e. your Zomato Swiggy delivery partners will be included on the eShrum platform. They will be given ID cards. Insurance will be given under PM Jan Arogya Yojana. And this will help 1 crore gig workers. There were talks of focusing on medical tourism in the country. There was another interesting point in the budget speech. That the Indian government is working on a nuclear energy mission. With an outlay of 15,000 crores. The thing is, today climate change is a reality. And we cannot meet clean energy goals without nuclear power. There is no net zero without nuclear. But in India, only 3% of energy comes from nuclear power. Under the nuclear energy mission, India is going to build 5 indigenously, i.e. self-developed small nuclear power plants by 2033.
Chapter 5 Conclusion You see, no country is perfect. It has to be made perfect. In this blog, we understood that to do different jobs for the government, to keep the borders of the country safe, for development, to run the post office, for ISRO’s missions, money is required. And that’s why, if we are taxpayers, then we should feel proud. But, today, the pain of taxpayers is that even after giving taxes, basic facilities are not provided. There is encroachment on the footpath. Corruption happens. Scams happen. And there is no focus on this. Where is the focus? On elections. Someone has said it right. A fine is a tax for doing wrong, and a tax is a fine for doing well. If the government has to progress instead of squeezing honest taxpayers, then what can we do? Let’s come back to the same family example. Like we see in Bollywood, that when a boy grows up, he is told to learn to stand on his own feet. Similarly, today, the government needs to say that stand on your own feet. I am not saying that income tax should be completely removed. But I am definitely saying that income tax should be reduced. And the government should increase non-tax revenue. And this is also possible. In this blog we learn that the income tax in going to reduce and because of that the country will suffer a revenue loss of 1lakh crore this is a huge gap, how will this gap fill? I feel there is one thing that the government, or specially the RBI can do. And that is Sovereign Wealth Fund. Many countries have Sovereign Wealth Fund, which has only one function. To grow the money of their country. Think of it kind of as a mutual fund, whose owner is the government, and the investor is also the government. Who invests in global shares, and other government bonds, so that they can earn money. And this investment part becomes a part of the government’s budget. Norway’s Sovereign Wealth Fund is one of the largest funds in the world. And as of November 2024, it was worth $1.74 trillion. Norway’s fund is invested in 1.5% of the world’s companies. This fund has made real estate investments in New York, Tokyo, London, and many other cities. Norway’s Sovereign Wealth Fund is Europe’s largest stock owner. Norway withdraws 4% from this fund every year, so that its deficit can be reduced. So that the country is less dependent on borrowing. This means that the country has to take less loans, and pay less interest. I found this article, which spoke about a Sovereign Wealth Fund for India, but I didn’t get any other recent news. But I feel this idea is so important. India should also invest some money in the world, with the sole intention to earn a return. This money should be used to reduce the country’s deficit. Today, India’s revenue receipts are this much, and total expenses are this much. So where will the rest of the money come from? From borrowing. We pay almost 40-50% of our expenses through borrowing. That is, income, expenses, and money. That’s why the biggest part of the budget every year is of interest payments. Just think, if some money from this amount is given to ISRO, and some more allocation is given to the Ayushman Bharat Scheme, or to buy defense equipment from an Indian company, then how much benefit can the country get from this? This topic is very interesting, and this time we will definitely make a dedicated blog. Because there are many things in this that India needs to learn. Okay, there is one criticism about this budget. That many big projects are going to start specifically in Bihar. But overall, after listening to the entire budget, we did not know if this is India’s budget or Bihar’s budget. It would be good if Bihar develops. But if these bridges are going to be broken with this money, then it is a waste of taxpayers’ money. Another criticism is that we are still giving money to Bangladesh. Ministry of External Affairs is going to give 120 crore funding aid to a hostile country like Bangladesh next year. I don’t agree with this because Bangladesh is rapidly becoming a hostile neighbor. At the same time, we are also budgeting 600 crores for Maldives. Which only takes our advantage. But every time it goes towards China. To put this in context, the amount for AI in education is 500 crores only. So we are keeping 500 crores for AI in education and giving away 600 crores to Maldives.
Credit by = Abhi and Niyu
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