Budget 2025 The Spending Capacity of the Middle Class will increase consumption and Economic Growth will get a boost

On 1 February 2025, Finance Minister Nirmala Sitharaman presented the eighth Union Budget of the Modi government in Parliament. In this budget, several important announcements were made to provide tax relief to the middle class, promote inclusive development, and encourage private investment. The purpose of the budget is to speed up economic development and ensure balanced progress in various fields.

Income tax relief

The government has increased the income tax exemption limit to Rs 12 lakh annually, giving relief to the middle class taxpayers. This means that now there will be no income tax on annual income up to Rs 12 lakh. In addition, changes have also been made in the tax slab, which will give more benefits to taxpayers. For example, 10% tax on income ranging from Rs 12 lakh to Rs 15 lakh, 15% tax on income ranging from Rs 15 lakh to Rs 20 lakh, and 20% tax on income of more than Rs 20 lakh will be levied. These changes will increase the ability to spend the middle class, which will promote increase in consumption and economic growth.

Economic experts have appreciated this provision of the budget. Some financial analysts say that increasing the limit of income tax exemption will keep more money in the hands of the middle class people, which will increase consumption and encourage the economy. “However, some experts have expressed concern over the fiscal deficit. Accordingly, “Increasing tax exemption may reduce the revenue of the government, which is a danger of increasing fiscal deficit.”

In addition, experts from Deloit India have recommended reforms such as expansion of production and development linked incentives for research and development (R&D) in the budget, reduction in corporate rates, and promoting public-private partnership (PPP). He believes that with these reforms, India’s business environment can be taken to new heights.

Reactions of ruling and opposition parties

The ruling Bharatiya Janata Party (BJP) has appreciated the budget. Prime Minister Narendra Modi said, “This budget has been prepared keeping in mind the interests of all classes and will speed up the overall development of the country.” Opposition parties have criticized the budget. Congress leader Rahul Gandhi said, “This budget is only in the interest of the rich and nothing has been done for the poor.” He also alleged that the government has not taken concrete steps for employment generation.

Janata Dal (United) leader Nitish Kumar appreciated the budget, saying, “This budget is important for the development of states like Bihar and this will improve the infrastructure.” Shiv Sena leader Eknath Shinde said, “Special provisions have been made for Maharashtra in the budget, which will be helpful in the development of the state.”

Responses of leaders of India coalition

Criticizing the budget, Trinamool Congress chief Mamta Banerjee said, “This budget is discriminatory with West Bengal and the funds required for the development of the state have not been allocated.” Dravida Munnetra Kazhagam (DMK) leader M.K. . Stalin said, “No special provisions have been made for Tamil Nadu in the budget, which will affect the development of the state.”

Common man’s reactions

Many people of the middle class have welcomed the decision to increase the limit of income tax exemption. Delhi resident Rajesh Sharma said, “Our savings will increase due to increasing income tax exemption limit, so that we will be able to fulfill the needs of our family in a better way.” However, some people have given concrete measures in the budget on issues of inflation and unemployment. Has expressed disappointment over the lack of Mumbai’s housewife Suman Verma said, “No concrete steps have been taken in the budget to control LPG and daily use items.”

Other major points of the budget

Support of agriculture sector: For farmers, the loan limit has been increased to Rs 5 lakh under the Kisan Credit Card, which will strengthen the agricultural sector. Investment in the health sector: The government has allocated Rs 2 lakh crore for the health sector, which provides for the establishment of new hospitals and upgrading existing health facilities. Improvement in education sector: A budget of Rs 1.5 lakh crore has been allocated for education, which provides for promoting digital education and establishing new schools.

Infrastructure Development: A allocation of Rs 10 lakh crore has been made for the development of infrastructure, which will cost on the development of roads, rail, and airports.

conclusion

Budget 2025 is historic in many ways, as it has been given tax relief to the middle class and investment in infrastructure, health, education and agriculture has been increased. The government has described it as a development -oriented budget, while the opposition has criticized it and described it only in favor of the rich and industrialists.

The opinion of the general public was also mixed. Many middle class families will get relief from income tax exemption, but this budget did not bring concrete solutions for people struggling with inflation and unemployment. The alliance parties appreciated the budget, while the leaders of the India alliance are describing it as directionless and discriminatory.

However, the real success of the budget in the coming months will depend on how effective the schemes prove to be at the grassroots level and whether the economy gets real strength.