New Delhi: Finance Minister Nirmala Sitharaman, paraphrasing Abraham Lincoln, referred to the Union Budget as "by the people, for the people, of the people" on Sunday.

She emphasized that Prime Minister Narendra Modi strongly supported the idea of tax cuts, though it took time to convince the bureaucrats.

In an interview post budget speech, Sitharaman said, "We have heard the voice of middle class who had been complaining about their aspirations not being met despite being honest taxpayers."

Sitharaman presented the Union Budget 2025 in the Lok Sabha outlining a roadmap for India's continued economic expansion, emphasizing agriculture, micro, small, and medium enterprises (MSMEs), investment, and exports.

She announced that no income tax will be payable on income up to Rs 12 lakh, providing significant relief to taxpayers, especially the middle class.

"There are a couple of things, which have been in the works for some time. One is the thought that the direct tax should be made simple and that it should be easy for compliance, and the tomb that goes in the name of direct taxation or Income Tax Act, will have to be a lot simpler," she said. 

Sitharaman went on to explain that the work was announced in the July 2024 Budget, with the goal of having the new income tax act ready within six months.

"In the process, although the emphasis was more towards simplifying the language, reducing the compliance burden, and also to make it a bit more user-friendly, and not let it be suffering due to various interpretations, which also was sought to be termed as rent-seeking tools," she elaborated.

She also mentioned the feedback she received from taxpayers during her travels, noting that the voice of the people was clear: "We are proud taxpayers, we are honest taxpayers, we want to be continuing to serve the country by being good taxpayers. But would you think about the kind of things you can do for us."

Sitharaman shared that after hearing these concerns, she had a discussion with Prime Minister Narendra Modi, who gave her the specific task to address the matter. "I had this discussion with the honourable PM, who put me on this specific assignment to 'see what you can come up with,'" she explained.

The Finance Minister noted that the work within the ministry was guided by the Prime Minister, and after briefing him on the proposals, they were able to come up with a plan that would benefit the taxpayers. "Therefore, we did a bit of work within the ministry and briefed the PM on what it is before us, and guided by him, we have come up with this..." she added.