Janta Janardan Ka Budget: PM, Citizen first Budget: Gujarat CM

The Union Budget for 2025-26, presented by Union Finance Minister Nirmala Sitharaman, introduces significant reforms aimed at stimulating economic growth and providing relief to the middle class. A notable highlight is the reduction in personal income tax rates, with the non-taxable income threshold raised to Rs 1.28 million. This move is expected to enhance middle-class spending power, though it comes with an estimated revenue impact of Rs1 trillion. In terms of fiscal policy, the government has set an ambitious target to reduce the fiscal deficit to 4.4% of GDP, down from the previous year's 4.8%. To fund this deficit, plans include borrowing Rs 14.82 trillion through bonds. While this demonstrates a commitment to fiscal consolidation, the modest increase in capital expenditure to Rs 11.2 trillion has raised concerns among analysts. The limited boost in infrastructure spending may not be sufficient to significantly stimulate private investments, which are crucial for economic growth amid challenges like slow urban demand and high food inflation.
Prime Minister Narendra Modi lauded the Union Budget 2025 on Saturday,calling it a "Janta Janardan Ka Budget" and highlighting its focus on people-oriented measures to drive India's progress.
Gujarat Chief Minister Bhupendra Patel said the "citizen first" Union Budget will fulfil the hopes of crores of poor and middle class people and give a new direction to fulfilling the resolution of a developed India by 2047. No tax on income up to Rs 12 lakh per annum provides a big relief to crores of employed and middle class people in the country, he said. In a post on X, Patel said, "By not imposing any tax on annual income up to Rs 12 lakh, the central government has dedicated its income of Rs 1 lakh crore to the employed and middle class people. This decision under the guidance of the prime minister is a big gift for the common citizens." The budget focuses on four pillars - agriculture, MSMEs, investment and export - to give further impetus to GYAN - Garib (poor), Yuva (youth), Annadata (farmers) and Naari Shakti (women), he said. This budget realises the mantra of self-reliant India with the resolve to make India the third largest economy in the world, he said.

Budget: Aids mddle class, inflation looms, Experts Say
Harshvardhansinh Solanki ,a prominent businessman, expressed his views on the Union Budget 2025-26, noting its strategic focus on fostering inclusive growth and boosting employment. He highlighted the middle class as a key beneficiary, with significant tax reforms increasing disposable income. The emphasis on agriculture, EVs, MSMEs, healthcare, and infrastructure will drive both immediate and long-term growth. He lauded the government’s global vision for India, positioning the country for economic leadership despite global challenges. The continued commitment to ease of doing business and empowering sectors like agriculture and MSMEs is particularly commendable. He further noted that ‘balanced fiscal measures and investment-friendly policies will be crucial in sustaining economic momentum.
Overall, the Union Budget 2025-26 reflects a strategic effort to invigorate the middle class through significant tax relief while maintaining a cautious stance on fiscal expansion. While this effort is commendable, challenges remain, particularly with persistent inflation, which continues to erode purchasing power, and the ongoing issue of low job creation across the country. The middle class, long grappling with stagnating wages and economic uncertainty, had hoped for more substantial relief. Despite the high anticipation raised by mentions of the middle class in the President's and Prime Minister's addresses, the Budget’s impact on addressing these concerns appears limited, with much still dependent on effective implementation and the broader economic environment.

(Business Correspondent)