New Delhi/IBNS: Prime minister Narendra Modi on Saturday said the union budget presented by finance minister Nirmala Sitharaman fulfills the dreams of people and drives the mission for Viksit Bharat (developed India).

Modi said, "This is a budget which fulfills the dreams of our people. We have opened many sectors for the youth. Common citizens are going to drive the mission of Viksit Bharat. This budget is a force multiplier.

"This budget will increase savings, investment, consumption and growth. I congratulate Smt Nirmala Sitharaman and her entire team for coming up with a people-centric budget."

The PM added, "Today is an important milestone in India's development journey. This is the budget of the aspirations of 140 crore Indians, this is a budget that fulfils the dreams of every Indian.

"We have opened many sectors for the youth. This is going to drive the mission of developed India, this budget is a Force Multiplier."

Nirmala Sitharaman along with the Ministers of State for Finance, Shri Pankaj Chaudhary as well as her Budget Team. Photo courtesy: PIB

Boosting spending of the middle class and reaching out to the aggrieved salaried group with a big announcement by exempting tax on income of upto Rs 12 lakh, Union Finance Minister Nirmala Sitharaman presented the Union Budget 2025 with a focus on encouraging private investment, assuaging the middle-income constituency and strengthening growth.

Amid high food inflation and shrinking disposable incomes that affected the country's growth story, the FM, who has been accused of unleashing tax terrorism earlier, announced transformative reform in taxation while addressing farmers, the poor and youth besides women.

The FM said the salaried class will not pay any income tax upto Rs 12.75 lakh per annum in the new tax regime while recognising the four engines of growth- agriculture, MSME actor, investment and exports.

Sitharaman announced the setting up of a Makhana board in Bihar to help Makhana farmers get benefits from the Central schemes.

In another key announcement, the FM raised the FDI limit for the insurance sector  from 74 to 100 percent, for those companies which invest the entire premium in India.