Union Budget 2025: Tax Relief for Middle Class, Growth Challenges Remain

At long last, the middle class can breathe easy. Finance Minister Nirmala Sitharaman has spelt relief for the middle class via the union budget. The Prime Minister had noted after the economic survey that he prayed to the Goddess of wealth that She maintained her benignity on the poor and middle class. The Finance Minister has given tax relief on income up to Rs 12 lakh. This comes as a big boon and a warm-hearted response is expected. The economy will not only get a boost but it should pick up momentum. It should not be overlooked that whereas the economic survey has pegged a growth rate between 6.3 and 6.8 percent in the forthcoming financial year, a minimum of 8 percent growth is necessary for economic development over the next decade. But how can this target be achieved? This question arises because the budget has no provision that can ensure an eight percent growth rate. To add to the country’s economic development, it is necessary for the national trade and economy sector to be potent enough to take on international competition for, only then can the development percentage be attained. The Indian economy has to attain excellence in this competition to meet the demands of the world market. It is compulsory that together with our large scale industries, the SSI units too should pitch in with quality production to meet international standards. The capital investment should also be of world-class requirements.

It is true that the budget has provisions for enhanced capital borrowings for small and medium scale industries but what is required is the technique that is lacking to make products viable at the international level. Strengthening the SSI and middle scale industries will not only make them self-dependent but will ease the tight employment situation. The economic survey also pointed out that under prevailing conditions pushing traditional financial policies was irrelevant but the budget does not provide that all such policies were being struck off. The budget, while keeping in mind the necessity of policies aimed at social development, allocated funds but did not note that attractive schemes for self-reliance were out of context. When people become self-dependent, the country too shall attain self-dependence. Undoubtedly, the budget has raised hopes for a better tomorrow but it does not seem to dissolve the apprehensions arising from indigenous and international socio-economic situations.

From the Editorial Desk