PM Modi Backed Tax Cuts, Bureaucratic Approval Took Time: FM Nirmala Sitharaman

Finance Minister Nirmala Sitharaman stated on Sunday that Prime Minister Narendra Modi was fully supportive of the idea of reducing taxes, but it took time to persuade the bureaucrats, according to PTI.

"...The PM was very clear that he wants to do something. It is for the ministry to have had the comfort level and then go with the proposal. So, the more work that was needed, was needed for convincing the board that efficiency in collection and honest taxpayers' voice... all this was work here in the ministry, not so much for the PM..." Sitharaman said in an interview with PTI.

Photo Credit: PTI

She stressed that, like Prime Minister Modi, his government has always taken into account the views of people from various sectors.

"...He (PM Modi) meets them, interacts with them, gets their inputs... just as he would also talk with the most deprived sections or let's say the tribals, particularly the vulnerable tribal groups... just as Rashtrapati ji was very keen on addressing their problems, PM also listens to all sections... So, I am very happy to be part of this government, which literally hears the voice and responds."

Income Tax Changes in the Union Budget 2025

Presenting the Union Budget for 2025-26 on Saturday, Sitharaman announced that individuals earning up to ₹12 lakh annually would not be required to pay income tax.

"To taxpayers up to ₹12 lakh of normal income (other than special rate income such as capital gains) tax rebate is being provided in addition to the benefit due to slab rate reduction in such a manner that there is no tax payable by them," she declared in Parliament.

Her announcement, which provided significant relief to the middle class, was met with enthusiastic applause from the treasury benches, led by PM Modi.

Later that day, Prime Minister Modi praised the budget presented by Sitharaman, describing it as a "force multiplier." In a video address, he stated that the budget embodies the aspirations of 1.4 billion Indians.

"Usually, the focus of the budget is on how the government treasury will be filled. But this budget is exactly the opposite. How will this budget fill the pockets of the citizens, increase their savings and how will they become development partners... this budget lays a very strong foundation for it..." PM Modi remarked.