The Union Budget 2024, unveiled amidst much anticipation, has drawn mixed reactions from various quarters. As India’s first platform exclusively for the middle class, Middle Class Hub scrutinises the budget with a critical eye. While the budget boasts of reforms and allocations, we delve deeper to uncover its true impact on the middle class.
The budget, presented by Finance Minister Nirmala Sitharaman, aimed at fostering economic growth while addressing fiscal prudence. However, the middle class, often seen as the silent majority, seems to have been left out in several critical aspects.
Tax Relief – A Missed Opportunity
One of the most glaring disappointments is the lack of substantial tax relief for the middle class. While there were expectations of an increase in the basic exemption limit or significant changes in the tax slabs, the budget fell short. The minor tweaks in the standard deduction and marginal relief for salaried individuals do little to address the mounting financial pressures faced by middle class households, especially in a post-pandemic economy.
Inflation and Rising Costs
Inflation continues to erode the purchasing power of the middle class. While the budget talks about controlling inflation, the on-ground reality is starkly different. Rising fuel prices, increased cost of essential commodities, and higher interest rates on loans are squeezing the middle class budget. The absence of concrete measures to tackle inflationary pressures leaves the middle class grappling with escalating living costs.
Education and Healthcare – Half-Hearted Measures
The budget allocates funds for education and healthcare, but the allocations fall short of the burgeoning needs of these sectors. For the middle class, quality education and affordable healthcare are paramount. The token increases in allocations do not match the expectations of a populace that heavily relies on private institutions for education and healthcare, given the inadequacies of the public system.
Housing – A Mixed Bag
The middle class had hoped for incentives to make housing more affordable. While the extension of tax benefits on home loan interest and additional deductions for first-time homebuyers are welcome steps, they do not significantly ease the financial burden. The rising cost of real estate continues to keep homeownership out of reach for many middle class families.
Savings and Investments – Limited Encouragement
The middle class traditionally relies on savings and prudent investments. The budget’s focus on increasing capital expenditure is commendable for long-term growth, but it offers little immediate incentive for middle class savings and investments. The lack of enhanced exemptions on savings schemes or higher interest on fixed deposits is a missed opportunity to bolster middle class financial security.
Social Security and Welfare – Inadequate Coverage
Social security measures in the budget appear inadequate for the middle class, which often falls through the cracks of welfare schemes targeted at the underprivileged. The absence of robust unemployment benefits, pension schemes, or comprehensive social security nets leaves the middle class vulnerable in times of economic uncertainty.
A Call for Inclusive Growth
While the Union Budget 2024 aims at broad economic growth, it overlooks the specific needs and aspirations of the middle class. For a demographic that significantly contributes to the nation’s economy and social fabric, this budget offers little solace. The middle class is left yearning for more substantial relief and targeted measures to ease their financial burden.
At Middle Class Hub, we advocate for a more inclusive approach in budgetary allocations. The middle class, as the nation’s economic engine, deserves policies that reflect their contributions and address their challenges. As we look ahead, it is imperative for policymakers to engage more closely with middle class realities, ensuring that future budgets provide tangible benefits and foster a sense of economic security and growth for this vital segment of society.
Rating – 2.5/5
