Feb 01, Kathmandu- Indian Prime Minister Narendra Modi has announced a new budget giving special priority to those with middle-income status.

The 2025 budget presented in the Lok Sabha today has reformed the previous tax system and introduced a new tax system that exempts income up to Rs 1.2 million. Indian media outlets have reported that the budget has made provision for exempting income up to Rs 1.2 million. In the budget brought by the Modi-led government earlier in 2014, such limit was exempted from tax up to 2.5 thousand rupees and in 2019 up to 500 thousand, and in 2023 up to 700 thousand. Some economists have interpreted this as the biggest reform in the last decade.