A day before the government presents its second full Budget, Prime Minister Narendra Modi suggested that the Budget might include special benefits for the poor and middle classes.
These groups are particularly concerned about income tax rates, which are a key part of the Budget.
India’s income tax rates have remained largely unchanged since 2020. Many people are now asking for changes, mainly due to inflation, which has made higher tax slabs apply at lower real incomes.
Additionally, the slowdown in India’s economy—where GDP growth is expected to drop from 8.2 per cent in 2023-24 to 6.4% in 2024-25—has raised the need for policies that boost spending.
It is unclear if PM Modi’s remarks hint at major announcements for the poor, such as restoring LPG subsidies or increasing welfare programs like PM-KISAN, PMAY, or the Jal Jeevan Mission. The government must also balance these expectations with the need for fiscal discipline.
Speaking before the Budget session, Prime Minister Narendra Modi expressed confidence that the Budget would bring new energy to India’s goal of becoming a developed nation. He emphasised that innovation, inclusion, and investment would be key to driving economic growth.
The government will present the Economic Survey on Friday, followed by the Union Budget for 2025-26 on Saturday. This Budget is expected to introduce measures to strengthen economic growth and help India become the world’s third-largest economy during Modi’s third term.
Currently, India is the fifth-largest economy in the world.
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