KKN Gurugram Desk | With the Union Budget 2025-26 set to be unveiled, Prime Minister Narendra Modi has hinted at a pro-people budget, particularly aimed at benefiting the middle class and economically weaker sections. In a recent statement, PM Modi evoked Goddess Lakshmi, the Hindu deity of wealth, and expressed his prayers for her special generosity towards the poor and middle-class families.

This remark, made a day before Finance Minister Nirmala Sitharaman presents the Modi government’s second full budget of its third term, has sparked discussions about potential tax reliefs, increased welfare spending, and economic revival measures.

Let’s take a deeper look at the expectations, possible policy shifts, and key takeaways from the upcoming Union Budget 2025.

PM Modi’s Statement: A Hint Towards a Middle-Class Friendly Budget?

PM Modi’s statement has fueled speculation that the government may introduce significant relief measures in the budget, particularly in the following areas:

✅ Income Tax Relief: The middle class has long demanded income tax slab revisions, especially since tax rates have remained largely unchanged since 2020.
✅ Increased Social Welfare Spending: The government might expand direct benefit schemes like PM-KISAN, Pradhan Mantri Awas Yojana (PMAY), and Jal Jeevan Mission.
✅ LPG Subsidies Restoration: With inflation concerns rising, the restoration of LPG subsidies—a key issue in state elections—could be a major policy move.
✅ Economic Growth Acceleration: With GDP growth slowing from 8.2% in 2023-24 to an expected 6.4% in 2024-25, the budget is likely to focus on boosting consumption and investment.

PM Modi also emphasized the importance of “prudence and achievement”, suggesting that while the government aims to be generous in economic measures, it will also ensure fiscal discipline and long-term stability.

Income Tax Reforms: Will the Budget Bring Relief for Salaried Individuals?

One of the biggest demands from the Union Budget 2025-26 is income tax relief. The income tax slabs have remained largely unchanged since 2020, leading to a growing demand for revisions.

Why the Demand for Tax Cuts?

???? Impact of Inflation: The purchasing power of taxpayers has decreased, and higher tax slabs now apply at lower real incomes.
???? Slowdown in GDP Growth: With economic growth expected to decline, tax cuts could help boost disposable income and consumption.
???? Need for Middle-Class Support: The salaried class, small businesses, and self-employed professionals are hoping for higher tax exemptions and standard deduction increases.

Possible Changes in Tax Structure

While there is no official confirmation, experts believe the government may tweak tax slabs to provide relief. Some possibilities include:

✅ Raising the basic exemption limit from ₹2.5 lakh to ₹5 lakh under the old tax regime.
✅ Increasing the standard deduction from ₹50,000 to ₹75,000 for salaried employees.
✅ Revising the 30% tax slab threshold to benefit higher-income earners.
✅ Providing additional deductions for investments in health insurance, education, and home loans.

LPG Subsidies and Welfare Expansion: Will the Government Offer Financial Support?

Another big question is whether the government will restore LPG subsidies, which were largely withdrawn in recent years. With rising fuel and food prices, many families have been struggling with household expenses.

???? Political Context: The BJP and opposition parties have made LPG subsidies a key issue in recent elections, promising relief to consumers.
???? Financial Feasibility: While bringing back subsidies would help middle-class and poor families, it could strain government finances, making the decision tricky.

Apart from LPG, the government may increase spending on:
✅ PM-KISAN (Direct Cash Transfer for Farmers)
✅ PMAY (Affordable Housing for Middle-Class & Rural Families)
✅ Jal Jeevan Mission (Drinking Water Supply to Rural Areas)

These schemes not only improve economic conditions but also boost employment and rural development, helping in long-term economic growth.

Balancing Growth and Fiscal Prudence: Government’s Economic Strategy

While the government is expected to introduce relief measures, it also needs to manage its fiscal deficit and ensure long-term economic stability.

PM Modi highlighted three key areas in his pre-budget statement:
???? Innovation: Promoting digital transformation, AI, and emerging technologies.
???? Inclusion: Strengthening schemes that benefit the poor and underprivileged.
???? Investment: Attracting foreign and domestic investment to create jobs and boost infrastructure.

India’s Economic Position & Global Aspirations

???? India is currently the world’s fifth-largest economy, but PM Modi’s vision is to make it the third-largest economy during his third term.
???? The Union Budget 2025 is expected to focus on policies that will accelerate economic growth and maintain India’s position as an emerging global powerhouse.

The Economic Survey, which will be tabled before the Budget, will provide insights into India’s fiscal position and economic trajectory.

Key Expectations from Union Budget 2025-26

As India gears up for the budget announcement, here are the top areas where major announcements are expected:

1️⃣ Income Tax Reforms

???? Possible increase in tax exemptions and standard deductions.
???? Adjustments in income tax slabs to provide relief to middle-class families.

2️⃣ Boost to Infrastructure & Investment

???? Higher public spending on roads, railways, and digital infrastructure.
???? Incentives for AI, technology, and startups to drive economic growth.

3️⃣ Expansion of Social Welfare Programs

???? Increased allocations for PM-KISAN, PMAY, and Jal Jeevan Mission.
???? Potential restoration of LPG subsidies to ease household expenses.

4️⃣ Fiscal Prudence & Growth Strategy

???? The government will focus on balancing economic growth while maintaining fiscal discipline.
???? Measures to attract global investment and enhance India’s manufacturing sector.

PM Modi’s remarks ahead of the Union Budget 2025-26 suggest that significant policy measures for the middle class and poor could be in store. However, the challenge remains in balancing economic growth, fiscal responsibility, and public welfare.

With growing expectations for tax cuts, increased social spending, and investment incentives, the government faces the complex task of delivering a balanced budget. Whether this budget meets public expectations or not, it will play a crucial role in shaping India’s economic future.

???? For the latest updates on the Union Budget 2025, stay tuned to KKNLive.com! ????