With Union Budget 2025 just a day away, Prime Minister Narendra Modi invoked the Maha Lakshmi mantra, expressing his hopes for prosperity and financial relief for India's poor and middle class. Speaking before the new parliamentary session, he emphasized the significance of economic well-being and prayed for Goddess Lakshmi's continued blessings.
Ahead of the budget, President Droupadi Murmu also addressed the nation, assuring that the government remains committed to fulfilling the middle class' dream of owning homes. PM Modi's remarks are being viewed as a signal that the upcoming Union Budget might contain favorable provisions for these groups.
Expectations for tax relief are high, particularly among salaried taxpayers, who hope for additional relief to ease the financial burden. In Budget 2024, Sitharaman had increased the standard deduction for salaried employees and pensioners under the new tax regime to Rs 75,000, while those under the old regime continued with Rs 50,000. This year, there is anticipation of further raising the standard deduction.
Middle-class expectations for Budget 2025 include an increase in the basic exemption limit, enhanced health insurance benefits, revised tax slabs, and the introduction of deductions on NPS contributions. There is also a demand for making annual income up to Rs 10 lakh tax-free under the new regime.
The Union Budget 2025 is expected to address India's weakening economic growth while providing relief to the middle class struggling with high inflation and stagnant wages.
