New Delhi, Feb 1 (Reporter) Going the whole hog to boost demand and spur private investment, Finance Minister Nirmala Sitharaman on Saturday announced nil tax for individuals earning upto Rs 12 lakh a year, higher credit guarantee cover for MSMEs and startups as also a favourable policy for public-private partnership (PPP) projects. Presenting the Union Budget for 2025-26 in the Lok Sabha, Sitharamn also proposed measures to provide further impetus to labour-intensive sectors for creating more jobs. More money in the pockets of the middle class is expected to boost consumption and provide much-needed support to the economy which is seen logging its lowest growth in the last four years during 2024-25 at 6.4%. "The middle class provides strength for India’s growth," Sitharaman said as she presented her eighth Budget and announced the tax relief, days ahead of the Delhi election. The Finance Minister said slabs and rates are being changed across the board to benefit all taxpayers. She further said that the new structure will substantially reduce the taxes of the middle class and leave more money in their hands, boosting household consumption, savings and investment. "I am now happy to announce that there will be no income tax payable upto income of Rs 12 lakh (i.e. average income of Rs 1 lakh per month other than special rate income such as capital gains) under the new regime," Sitharaman said amid cheers and desk-thumping by members of the Treasury benches. Demanding a discussion on the Maha Kumbh tragedy that left 30 dead at Prayagraj, the opposition MPs staged a 'symbolic' walkout as soon as Sitharaman started her Budget speech. In a big push to local manufacturing and create more jobs, Sitharaman announced a slew of measures including enhanced credit guarantee cover for micro and small enterprises and making India a global hub for toys. The credit guarantee cover for Micro and Small Enterprises has been proposed to be increased from Rs 5 crore to Rs 10 crore. For start-ups, the credit guarantee cover would be doubled to Rs 20 crore besides bringing the guarantee fee down to 1% for loans in 27 focus sectors. Providing impetus to private investment, the Finance Minister said that each infrastructure-related ministry will come up with a 3-year pipeline of projects that can be implemented in PPP mode. The Budget has estimated a capital expenditure of about Rs 10.18 lakh crore in 2025-26. Despite new schemes to support farmers, small businesses and the middle class, the government's finances are seen improving. The fiscal deficit or gap between total revenue and expenditure of the central government is estimated to be 4.4% of GDP in FY26 as against 4.8% (Revised Estimate) in FY25. The total receipts other than borrowings and the total expenditure are estimated at Rs 34.96 lakh crore and Rs 50.65 lakh crore respectively in FY26. The net tax receipts are estimated at Rs 28.37 lakh crore in the coming fiscal...////...