TODAY NEWS ON February 02, 2025

News Headlines for CAT, CLAT and IPM aspirants

Source: THE HINDU

National news

• Union Budget 2025: Tax bonanza for middle class
• Union Budget 2025: MGNREGS allocation unchanged at ₹86,000 crore
• Union Budget 2025: Fresh boost for quest towards clean energy
• Union Budget 2025: A force multiplier, will fulfil the dreams and aspirations of 140 crore Indians, says PM Modi
• No income tax payable for income up to ₹12 lakh under new tax regime: Finance Minister Nirmala Sitharaman
• No reduction in public spending on capital expenditure, says Finance Minister
• PM Dhan Dhanya Krishi Yojana for farmers in Budget 2025
• Bihar gets Makhana board, food institute, airports and canal project
• Meagre hike for new procurements as MoD fails to utilise capital head in earlier allocation
• New norms for TDS, TCS in Union Budget 2025
• Cancer drugs, critical minerals get duty relief; lithium ion battery production to get a boost
• Sensex, Nifty end flat in highly volatile trade on Budget day
• ‘Band-aid for bullet wound’: Rahul Gandhi on Budget
• Supreme Court to hear on February 3 PIL alleging misuse of women-centric laws

International News

• Trump signs executive order to impose tariffs on Canada, Mexico and China
• Seven dead, 19 injured in air ambulance crash in Philadelphia
• Gaza ceasefire: Hamas hands over three hostages to Red Cross
• Sick, injured children begin crossing from Gaza to Egypt in first opening in months
• Gukesh draws with Wei Yi, Praggnanandhaa outwits Caruana in Tata Masters

Headlines

Union Budget 2025: Tax bonanza for middle class

If your car is sputtering, and a faulty fading battery appears to be the cause, the only immediate alternative is to try and jumpstart it by hooking it up with another running car. Finance Minister Nirmala Sitharaman sought to do just that on Saturday (February 1, 2025) with her Union Budget for 2025-26 — jumpstart slowing economic activity with a significant ₹1 lakh crore tax stimulus for households of the sort the government has generally refrained from — in the hope that India’s weakening domestic demand will rebound and bring the economy back to the fast lane.

Union Budget 2025: MGNREGS allocation unchanged at ₹86,000 crore

At a time when the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), the flagship rural employment programme, is running on a deficit of ₹9,754 crore, there has been no hike in fund allocation in the 2025-26 Budget. In FY 2025-26 Budget, ₹86,000 crore has been allocated for the scheme, which is same as the budget allocation for 2024-25. While the Centre insists that the MGNREGS is a demand driven scheme and additional funds are given when required, no upward revision was made in the ongoing financial year.

Union Budget 2025: Fresh boost for quest towards clean energy

In a continuing quest to encourage small and medium firms in the clean energy sector, Union Finance Minister Nirmala Sitharaman has exempted cobalt powder and waste, the scrap of lithium-ion batteries, lead, zinc, and 12 other critical minerals from basic customs duty. In her July 2024 Budget, Ms Sitharaman had already exempted 25 critical minerals that are not domestically available from the basic customs duty net.

Union Budget 2025: A force multiplier, will fulfil the dreams and aspirations of 140 crore Indians, says PM Modi

Prime Minister Narendra Modi on Saturday (February 1, 2025) applauded the Union Budget 2025-26, terming it a “force multiplier” that would fulfil the dreams and aspirations of 140 crore Indians and enable them to drive forward the mission of ‘Viksit Bharat’ (developed India). He said the Budget had opened up many sectors for the youth. In his address to the nation, Mr. Modi said the Budget would increase savings, investment, and consumption, and propel overall growth.

No income tax payable for income up to ₹12 lakh under new tax regime: Finance Minister Nirmala Sitharaman

In the most anticipated announcement this Union Budget 2025, Finance Minister Nirmala Sitharaman, on Saturday (February 1, 2025), announced that there would be no income tax for incomes up to ₹12 lakh. She termed it as commitment and trust on the middle class. Effectively, under the new tax regime, considering the erstwhile standard deduction of ₹75,000, income of up to ₹12.75 would have no income tax liability.

No reduction in public spending on capital expenditure, says Finance Minister

Union Finance Minister Nirmala Sitharaman, on Saturday (February 1, 2025), said that there would be no reduction in public spending on Capital Expenditure. “There is no reduction in the public spending on capital expenditure. We continue to place emphasis on the multiplier effect that capital expenditure done by government has shown has sustained us. We continue on that, and with all this, our fiscal prudence has been maintained...”

PM Dhan Dhanya Krishi Yojana for farmers in Budget 2025

Union Finance Minister Nirmala Sitharaman on Saturday (February 1, 2025) announced the Pradhan Mantri Dhan Dhanya Krishi Yojana, or the developing agri-districts programme. The Pradhan Mantri Dhan Dhanya Krishi Yojana will converge existing schemes and will be undertaken in partnership with States. It will cover 100 districts with low productivity, moderate crop intensity, and below-average parameters.

Bihar gets Makhana board, food institute, airports and canal project

Bihar featured prominently in Nirmala Sitharaman’s Budget speech on Saturday (February 1, 2025) as she announced a slew of schemes for the State. A new Makhana Board, National Institute of Food Technology, Entrepreneurship and Management were announced. Apart from these, greenfield airports will be added in addition to the expansion of Patna airport and the West Kosi canal project in Mithilanchal was also announced. Stating that it will provide a fillip for the entire eastern India, she added, “It will enhance farmers’ income, add value to produce, skilling and employment opportunities for youth.”

Meagre hike for new procurements as MoD fails to utilise capital head in earlier allocation

The capital allocation for the Defence Ministry saw a meagre 4.65% increase to ₹1.8 lakh crore from the previous estimates, important considering the inflation and the currency fluctuations, as the armed forces are likely to return ₹12,500 crore from the budget estimates to the revised estimates of 2024-25. Of the ₹6,81,219.27 crore allocation for the next fiscal, revenue allocation was ₹3,11,732.30 crore, capital was ₹1.8 lakh crore, defence pensions stood at ₹1.6 lakh crore, and civil - ₹28,682.97 crore.

New norms for TDS, TCS in Union Budget 2025

Union Finance Minister Nirmala Sitharaman on Saturday (February 1, 2025) introduced several measures pertaining to personal finance, including the rationalisation of TDS (Tax Deducted at Source) and TCS (Tax Collected at Source). Three announcements were particularly noteworthy. First, the limit for tax deduction on interest for senior citizens has been doubled from the present ₹50,000 to ₹1 lakh. “Threshold amounts for tax deduction will be increased for better clarity and uniformity,” Ms. Sitharaman said.

Cancer drugs, critical minerals get duty relief; lithium ion battery production to get a boost

Union Finance Minister Nirmala Sitharaman on Saturday (February 1, 2025) announced measures in the Budget to rationalise the customs duty structure for industrial goods by removing seven tariff rates, and address duty inversion. The Finance Minister also proposed to apply appropriate cess to “broadly maintain effective duty incidence” except on a few items, where such incidence will reduce marginally, and levy not more than one cess or surcharge. “Therefore, I propose to exempt Social Welfare Surcharge on 82 tariff lines that are subject to a cess,” she announced.

‘Band-aid for bullet wound’: Rahul Gandhi on Budget

Congress leader Rahul Gandhi on Saturday (February 1, 2025) criticised the Union Budget 2025 saying the Centre was out of ideas in solving the “economic crisis”. “A band-aid for bullet wounds! Amid global uncertainty, solving our economic crisis demanded a paradigm shift. But this government is bankrupt of ideas,” Mr. Gandhi said in a post on X.

Supreme Court to hear on February 3 PIL alleging misuse of women-centric laws

The Supreme Court is scheduled to hear on Monday (February 3) a Public Interest Litigation, or PIL, alleging misuse of women-centric laws. The PIL names laws like the Dowry Prohibition Act, the Protection of Women from Domestic Violence Act, and the provision on cruelty to women in the Indian Penal Code to question their validity. The plea filed by petitioner Rupshi Singh highlights the malice in law, the unreasonableness contained in the impugned provisions and the lack of semblance of law in the provisions.

Trump signs executive order to impose tariffs on Canada, Mexico and China

U.S. President Donald Trump on Saturday (February 1, 2025) signed an order to impose stiff tariffs on imports from Mexico, Canada and China, fulfilling a campaign promise but raising the prospect of increased prices for American consumers. Mr. Trump is declaring an economic emergency to put duties of 10% on all imports from China and 25% on imports from Mexico and Canada — America’s largest trading partners — except for a 10% rate on Canadian oil.

Seven dead, 19 injured in air ambulance crash in Philadelphia

Authorities sifted through burned cars, damaged homes and charred debris Saturday (February 1, 2025) to gather clues that might explain why an air ambulance exploded into a fiery ball as it crashed on a busy Philadelphia street, killing seven and leaving no survivors on board. The small plane carrying six people, including a child who had just undergone treatment at a hospital, crashed just after takeoff from the small Northeast Philadelphia Airport, creating what witnesses described as a massive fireball and a chaotic street scene that left houses on fire, businesses damaged and cars destroyed.

Gaza ceasefire: Hamas hands over three hostages to Red Cross

Hamas has handed American-Israeli hostage Keith Siegel, 65, over to the Red Cross, the third hostage to be released Saturday as part of a ceasefire deal with Israel. Mr. Siegel walked onto a stage set up by the sea in Gaza City before militants handed him over to waiting Red Cross officials, while thousands of people gathered in Tel Aviv’s Hostages Square to watch on a large screen, waving signs and cheering.

Sick, injured children begin crossing from Gaza to Egypt in first opening in months

A group of 50 sick and injured Palestinian children began crossing to Egypt for treatment through Gaza’s Rafah crossing on Saturday, in the first opening of the border since Israel captured it nearly nine months ago. The reopening of the Rafah crossing represents a significant breakthrough that bolsters the ceasefire deal Israel and Hamas agreed to earlier this month. Israel agreed to reopen the crossing after Hamas released the last living female hostages in Gaza.

Gukesh draws with Wei Yi, Praggnanandhaa outwits Caruana in Tata Masters

World champion D Gukesh maintained his half-point lead with an easy draw against Wei Yi of China, while R Praggnanandhaa outwitted top seed Fabiano Caruana of the United States to come within striking distance of the leader after the 11th round of Tata Steel Masters. Playing the white side of an Italian game, Gukesh went for a relatively new plan by pushing his central pawn in the opening that just helped Wei Yi maintain parity after the trade of queens.