Budget 2025: Will the Middle Class Get Tax Relief? PM Modi’s Words Raise Hope
The Union Budget 2025, which will be presented on February 1, 2025, has created a lot of excitement. Many people, especially the middle class, are hoping for a reduction in income tax. With Finance Minister Nirmala Sitharaman preparing to deliver the budget, Prime Minister Narendra Modi’s recent remarks at the beginning of the Parliament’s Budget session have intensified speculation about possible tax cuts.
Addressing the media before the session, PM Modi invoked Goddess Lakshmi while expressing hopes for blessings on the poor and middle class. He highlighted that India has completed 75 years as a democratic country and said that India is strong on the world stage. He also expressed confidence that by 2047, when India completes 100 years of independence, it will become a fully developed nation (Viksit Bharat). He stated that this budget would bring fresh energy and hope as it is the first full budget of his third term. PM Modi then outlined the roadmap to economic activities- innovation, inclusion, and investment- as the new key pillars. He expressed hope that the Budget session will inject new confidence and motivation towards achieving national economic goals. The fact that he mentioned the middle class when talking about the budget has raised the question of whether the financial plan in the offing will finally bring the much-awaited income tax relief.
Salaried taxpayers always wait with bated breath for budgetary announcements that will ease their cost burden by slashing income tax or revising the tax slabs or raising the deductions. The experts in tax and economists had been clamouring for a further rationalization of the new income tax regime, besides hiking the standard deduction to enhance the disposable income in the hands of the middle-class.
This year’s budget is important because India’s GDP growth has dropped to 5.4%, the lowest in two years. Many experts believe that lowering income tax rates will help people spend more money, which can boost the economy.
The second budget of the Modi 3.0 government and the eighth budget presented by Finance Minister Nirmala Sitharaman, expectations are high. The focus now shifts to the Union Budget speech to determine whether the financial year 2025-26 will bring much-needed tax relief for the common man.
