Mumbai, Feb 1 (PTI) Maharashtra Chief Minister Devendra Fadnavis on Saturday described the Union Budget as a "dream budget" for the middle class, stating that it will spur growth and lead to an inclusive economy.

Talking to reporters here after the Union Budget for the fiscal 2025-26 presented by Finance Minister Nirmala Sitharaman, Fadnavis hailed the decision to raise the income tax exemption for income up to Rs 12 lakh from Rs 7 lakh under the new tax regime.

This is a bold step that proves to be a milestone in the economic history of the country.

"The Union Budget is a dream budget for the middle class," he said.

The budget has been prepared keeping in mind the the goals of 'Viksit Bharat', accelerating development and growth, lead towards an inclusive economy, the CM said.

"This will benefit the salaried class, the middle class, and the youth. This will lead to creation of a significant disposable income and that expenditure will lead to a rise in the demand. This will further benefit the micro, small and medium enterprises (MSMEs)," he said.

According to Fadnavis, the credit enhancement scheme for the MSMEs will also benefit the sector and generate significant employment. This, he said, will particularly help Maharashtra which is aiming to be the start-up capital of India.

The missions announced for the youth will give flight to their dreams, he said.

Fadnavis also welcomed the agricultural initiatives announced in the budget, including the new pulses mission and increasing the credit limit from Rs 3 lakh to Rs 5 lakh.

The chief minister said that allowing 100 FDI in the insurance sector has come with a rider that the companies will now have to invest 100 per cent premium within the country.

"This wise and innovative step will help the infrastructure sector. Earlier, the Life Insurance Corporation of India (LIC) used to do that, but now the private companies too have to do it," he said.

They have to invest 100 pc premium to be invested in India. This will help the infrastructure sector. It is a very innovative and very wise decision, the CM said. PTI PR NP

Income tax exemption expansion boosts middle-class disposable income and spurs demand, aiding MSME growth and infrastructure investment. The budget expands income tax exemption under the new tax regime to increase middle-class disposable income and spur demand, benefiting salaried taxpayers and MSMEs. It introduces a credit enhancement scheme for MSMEs, raises agricultural credit and launches a pulses mission, and conditions full FDI in insurance on reinvestment of premiums domestically to support infrastructure financing.