Union Budget 2025 Live updates

Union Finance Minister Nirmala Sitharaman kicked off her eighth consecutive Union Budget 2025 presentation in the Lok Sabha on Saturday. Earlier that day, she met with President Droupadi Murmu to seek her approval for the Budget. Following this, the Union Cabinet approved the Budget ahead of Sitharaman's speech in Parliament at 11 am on February 1, 2025.

During the presentation of the first full Budget under the Modi 3.0 government, Finance Minister Sitharaman introduced significant changes to the income tax slabs. In a major relief for the middle class, she announced that no income tax would be levied on incomes up to Rs 12 lakh.

On Friday, ahead of the Budget Session at Parliament, Prime Minister Narendra Modi expressed optimism that the upcoming budget will meet the aspirations of the nation.

The Prime Minister highlighted that this was the first full budget session of his third term and expressed confidence that by 2047, when India celebrates 100 years of independence, the nation will have achieved its goal of becoming a developed country.

"In the vision of a ‘Viksit Bharat’... there is the collective strength of public participation, a roadmap for the nation’s economic progress, the power of technology in the form of a digital revolution, and the foundation of modern infrastructure," said President Droupadi Murmu during her address at the Budget Session of Parliament. "The government is steering India towards becoming the world’s third-largest economy," she added.

Find all the key announcements here:

12:18 am - FM ends Budget speech

12:16 am - Revised income tax structure

Under the new tax regime, no income tax will be payable up to Rs 12 lakh. For salaried taxpayers, this limit will increase to Rs 12.75 lakh due to the standard deduction of Rs 75,000.

The revised tax structure is as follows: income up to Rs 4 lakh will be tax-free, while income between Rs 4 lakh and Rs 8 lakh will be taxed at 5%. For income between Rs 8 lakh and Rs 12 lakh, the tax rate will be 10%, and between Rs 12 lakh and Rs 16 lakh, it will be 15%. Income from Rs 16 lakh to Rs 20 lakh will be taxed at 20%, while earnings between Rs 20 lakh and Rs 24 lakh will be taxed at 25%. Any income above Rs 24 lakh will be taxed at 30%.

12:10 am - Startup ecosystem

To further support the Indian startup ecosystem, FM proposes extending the incorporation period by five years, allowing startups incorporated before April 1, 2030, to continue benefiting from available incentives.

12:03 am - Income Tax for senior citizens

The tax deduction limit on interest for senior citizens will be doubled from Rs 50,000 to Rs 1 lakh. Additionally, the annual TDS limit on rent will increase from Rs 2.40 lakh to Rs 6 lakh, reducing the number of transactions subject to TDS and benefiting small taxpayers receiving smaller payments.

11:56 am - Capital goods exemption

Lithium-ion batteries will be added to the list of exempted capital goods, along with 35 new capital goods for EV battery manufacturing and 28 for mobile phone batteries, boosting domestic production for both sectors.

11:53 - Healthcare

FM announces 36 life saving drugs to be added to the list of medicines fully exempt from basic customs duty

11:46 am - Income tax bill

FM said that in the last 10 years, the government has introduced reforms like faceless assessments, a taxpayer charter, and faster returns. She also proposed to introduce a new income tax bill next week.

11:40 an - DeepTech Fund

A DeepTech Fund of Funds will be introduced to support the growth of next-generation startups. As part of this initiative, the PM Research Fellowship scheme will offer 10,000 fellowships over the next five years for technological research at IITs and IISc.

11:35 am - Urban Challenge Fund

The government will create a Rs 1.1 lakh crore Urban Challenge Fund to support city growth, redevelopment, and water and sanitation projects. It will finance up to 25% of eligible project costs, with at least 50% of the funding sourced from bonds, bank loans, and PPPs.

11:32 - Make in India

A new manufacturing mission, launched under the Make in India initiative, will offer extensive policy support and a well-structured framework to assist small, medium, and large industries. The mission aims to establish a robust ecosystem for solar PV cells, electrolysers, and grid-scale batteries.

11:31 am - Gig workers

FM Sitharaman revamps e-Shram portal to benefit one crore gig workers

11:30 am - Big push for IITs

To accommodate more students at IITs, additional infrastructure will be developed at the five IITs established after 2014. Furthermore, IIT Patna will expand its hostel and other infrastructure to support the growing student population.

“The budget places a strong emphasis on education and digital empowerment, ensuring that India’s talent pipeline is built from the ground up. The establishment of three Centres of Excellence on AI for Education, with an outlay of ₹500 crore, will drive AI-integrated learning, research, and innovation, preparing students for next-generation careers in artificial intelligence and automation. To further strengthen technical education, IITs set up after 2015 will see an expansion, adding 6,500 more student seats, enhancing access to world-class learning and research opportunities," said Sumit Kumar, Chief Strategy Officer, TeamLease Degree Apprenticeship.

"At the school level, 50,000 Atal Tinkering Labs (ATLs) will be established in government schools, fostering scientific curiosity, innovation, and problem-solving skills among students,” he added.

11:29 am - Atal Tinkering Labs for students

Over the next five years, Atal Tinkering Labs will be set up in 50,000 government schools to foster curiosity, innovation, and a scientific mindset among students.

11:28 am - Scheme for SC/ST women entrepreneurs

The Finance MInister announced a new scheme that will support 5 lakh first-time women, SC, and ST entrepreneurs with term loans of up to Rs 2 crore over the next five years, incorporating lessons from the Stand-Up India initiative. Online training for entrepreneurship and managerial skills will also be provided.

11:25 am - Fund of Funds for Startups

Finance Minister Nirmala Sitharaman said the government will set up a new Fund of Funds for Startups. The credit guarantee cover will increase from Rs 10 crore to Rs 20 crore, with a reduced guarantee fee of 1% for loans in 27 focus sectors crucial for Atmanirbhar Bharat.

11:22 am - Boost for MSMEs

To support scaling of MSMEs, investment and turnover limits will increase, boosting confidence and job creation. Additionally, the credit guarantee cover for micro, small and medium enterprises will rise from Rs 5 crore to Rs 10 crore, unlocking Rs 1.5 lakh crore in credit over the next five years.

11:12 - 11:18 am - Dhan Dhyan Krishi Yojana

FM announces the PM 'Dhan Dhyan Krishi Yojana' for farmers, which will focus on 100 districts with low crop yields, modern crop intensity, and below-average credit indicators. Additionally, Kisan Credit Cards will be given to support 7.7 crore farmers, fishermen, and dairy farmers. The loan limit under the scheme will increase to Rs 5,00,000 from Rs 3,00,000

11:10 am - Six key areas in focus

FM announces that the Budget will kickstart reforms in six key areas--taxation, urban development, mining, financial sector, power, and regulatory frameworks

11:07 am - Viksit Bharat

FM states that Viksit Bharat aims for zero poverty, 100% quality education, and comprehensive healthcare.

Telugu poet and playwright Gurajada Appa Rao had said, Desamante Matti Kaadoi, Desamante Manushuloi; meaning, ‘A country is not just its soil, a country is its people.’

11:05 am - Budget speech begins

Finance Minister Nirmala Sitharaman highlights the government's ongoing efforts to drive growth, foster inclusive development, encourage private investment, and boost the spending power and confidence of India’s growing middle class.

11:04 am “Together, we aim to unlock India's potential under the visionary leadership of Prime Minister Modi,” said the Finance Minister

11:03 am Uproar in Parliament as Nirmala Sitharaman begins her Budget speech

11:03 am Union Finance Minister Nirmala Sitharaman commences Budget speech

11:02 am Budget Session begins with an address by Lok Sabha speaker Om Birla

10:29 am Union Cabinet approves Budget 2025

10:27 am Union Cabinet meeting commences in Parliament ahead of the Budget 2025

10:22 am Prime Minister Narendra Modi departs for Parliament to attend the Budget Session

10:06 am Finance Minister takes a photo with the digital tablet in ‘bahi-khata’ to present paperless Union Budget 2025

09:59 am Nirmala Sitharaman arrives at the Parliament

09:36 am Finance Minister arrives at Rashtrapati Bhavan to meet President Droupadi Murmu ahead of the Budget 2025 presentation

09:24 am The Sensex rises 136.44 points to 77,637.01, while the Nifty gains 20.2 points to reach 23,528.60

09:15 am Stock market open on a positive note ahead of the Budget 2025

09:15 am Budget documents arrive at Parliament ahead of the presentation

09:12 am Finance Minister displays the tablet with Budget documents before heading to Parliament

08:52 am Finance Minister arrives at the Finance Ministry ahead of presenting Union Budget 2025

08:48 am Finance Minister Nirmala Sitharaman departs from her residence in Delhi to present Union Budget 2025 in Parliament today