Budget proposal of zero tax up to Rs 12 lakh annual income visionary step: Odisha CM

Bhubaneswar: Odisha Chief Minister Mohan Charan Majhi on Saturday said the "zero income tax" up to Rs 12 lakh per annum, as proposed in the Union Budget 2025-26, is a visionary step and will empower citizens and strengthen the economy.

Majhi said Odisha will get immense benefits from the Union budget as the state's share from central tax has been increased.

"A heartfelt thank you to Hon'ble PM Shri @narendramodi Ji and Hon'ble Finance Minister @nsitharaman ji for this transformative initiative of Zero Income Tax till Rs 12 Lakh under the New Tax Regime. This visionary step empowers citizens, strengthens the economy, and paves the way for brighter financial opportunities for all," he said in a post on X.

Majhi said this time the size of the budget is a record Rs 50,65,000 crore, which will give a new look to the progress and development of the country. The budget presented comprehensively is intended for every section of the society. There is some good news in this budget for farmers, daily wage earners, middle class, employees, women, youth, students and others.

Claiming that Odisha is in Prime Minister Narendra Modi's focus and the state will touch new heights of development, Majhi in a statement said that a record capital investment of Rs 15.5 lakh crore has been made in the budget to generate new jobs. Along with this, a provision of Rs 54,832 crore has been made for the Pradhan Mantri Awas Yojana (PMAY), which was Rs 32,426 crore.

"Odisha will also benefit from this increased provision and we will provide a record number of houses to the poor of the state," the chief minister said.

Majhi said the state's share from the central tax is estimated at Rs 55,232 crore for the year 2024-25 while in 2025-26 the amount will be Rs 64,408 crore. "The state government can use this increased fund for various welfare works," he said.

This apart, Majhi said a record provision of Rs 67,000 crore has been made for the Jal Jeevan Mission Yojana, which was Rs 22,694 crore. "With this, our government's goal of providing clean drinking water to all villages of the state in the next two years will definitely be achieved," he said.

Majhi said the 'Dhan Dhanya Krishi Yojana' has been proposed in the budget for the farmers of 100 districts in the country to increase productivity, which will help increase their income. This new scheme will benefit 1.7 crore farmers in the country. The announcement of increasing the loan limit from Rs 3 lakh to Rs 5 lakh through Kisan Credit Card under the Modified Interest Subsidy Scheme, will help in providing the farmers with the required cash."

The chief minister claimed that the budget has been able to fulfil the hopes and aspirations of the middle class families. "For income tax payers, those earning Rs 12 lakh, which is Rs 1 lakh per month, will not have to pay any tax. With this, they will save at least Rs 80,000 which will further strengthen the Indian economy. This is truly the Modi Guarantee - what he says, he does," Majhi said.

BJD president and Leader of Opposition in Odisha Assembly, Naveen Patnaik alleged that the Union Budget 2025-26 does not address the pressing challenges of price rise and unemployment.

Patnaik claimed Odisha's genuine demand for special category status has been rejected by the central government while other states get special provisions.

Taking to X, Patnaik said: "Today, the youth of the country are in dire need of jobs and common people are bearing the brunt of unchecked #PriceRise of essential commodities. It is unfortunate that two of the most pressing challenges the country is facing, have not been addressed in the #Budget2025. #Unemployment."

"Odisha has been rightfully demanding special category status in view of numerous natural calamities it faces every year. While other states are getting special provisions in the budget, yet again #Odisha's genuine demand has been completely overlooked by the central government," he added.