Today, Finance Minister Nirmala Sitharaman unveiled the Union Budget 2025, and for once, the middle class—the silent engine of India’s economy—has reasons to sit up and take notice. After years of feeling overlooked, are we finally witnessing a budget that acknowledges our contributions and addresses our concerns?
A Tax Relief Long Overdue
One of the most significant announcements is the increase in the income tax exemption limit to ₹12 lakh per annum. This move aligns with the nation’s vision of supporting India’s middle class and low-income groups. For countless families, this change translates to more disposable income, enabling better savings, investments, and an improved quality of life.
Boosting Consumption and Economic Growth
With more money in hand, the middle class is poised to drive consumption—a critical factor in economic growth. The government’s decision to slash personal income tax rates aims to enhance middle class spending and spur private investment amidst sluggish growth and high food inflation.
Addressing Core Concerns
Beyond tax relief, the budget introduces measures to tackle issues that have long plagued the middle class –
Healthcare: The introduction of Day Care Cancer Centres and the exemption of cancer drugs from customs duty are commendable steps toward affordable healthcare.
Agriculture: The ‘Prime Minister Dhan-Dhaanya Krishi Yojana’ aims to benefit 1.7 crore farmers by covering 100 low agricultural productivity districts, potentially stabilising food prices and ensuring food security.
A Balanced Approach
While the budget offers much-needed relief, it’s essential to consider the broader economic implications. The government anticipates a fiscal deficit reduction to 4.4% of GDP in 2025-26 and plans to borrow ₹14.82 trillion to cover it. Balancing tax cuts with fiscal responsibility will be crucial to sustain long-term economic health.
The Road Ahead
The Union Budget 2025 marks a promising shift in policy, reflecting a genuine effort to uplift the middle class. However, the true impact will depend on effective implementation and continuous engagement with middle class concerns. As we move forward, it’s imperative for the government to maintain this momentum, ensuring that the middle class remains a focal point in India’s growth narrative.
While challenges remain, today’s budget offers a glimmer of hope. It’s a step toward recognising and rewarding the middle class’s pivotal role in shaping India’s future. Let’s remain cautiously optimistic and continue advocating for policies that uphold our interests and aspirations.
