Nirmala Sitharaman unveils Modi’s vision for tax reform amid bureaucratic hurdles

Delhi: Finance Minister Nirmala Sitharaman disclosed that Prime Minister Narendra Modi was a staunch advocate of tax reduction but faced resistance from bureaucrats before implementing the reforms. Sitharaman shared insights into Modi’s persistent efforts to ease the tax burden on citizens. "The PM was very clear that he wanted to do something significant. The real challenge was within the ministry—convincing the board that efficient tax collection and the concerns of honest taxpayers should be prioritized," She explained. According to Sitharaman, Modi consistently engaged with various stakeholders, from bureaucrats to marginalized communities, to understand their perspectives and ensure inclusive policymaking.

Landmark Income Tax Reforms in Union Budget 2025

During the Union Budget 2025-26 presentation on Saturday, Sitharaman announced a landmark decision: no income tax would be levied on annual earnings up to ₹12 lakh. This move, aimed at easing the financial burden on the middle class, was met with resounding applause in Parliament, especially from the treasury benches led by PM Modi. "To taxpayers with a normal income (excluding capital gains and other special-rate income) up to ₹12 lakh, a tax rebate is being provided, along with slab rate reductions, ensuring they owe no taxes," Sitharaman stated during her budget speech.

PM Modi hails budget as a "Force multiplier"

Following the announcement, PM Modi lauded the budget, calling it a "force multiplier" that aligns with the aspirations of 1.4 billion Indians. In a video address, he highlighted the paradigm shift in budget priorities, emphasizing citizen welfare over government revenue collection. "Traditionally, budget discussions revolve around how to fill government coffers. However, this budget is fundamentally different. It focuses on how citizens' pockets will be filled, how their savings will increase, and how they will become partners in national development. This budget lays a strong foundation for a prosperous future," Modi remarked.