The political landscape in India is shifting, with a notable mood upswing observed just 48 hours ahead of the Delhi elections.
This shift can be largely attributed to the recent announcement in the 2025 Union Budget, which saw the income tax exemption limit raised significantly from ₹7 lakh to ₹12 lakh.
According to a C Voter survey, this move by the government has greatly improved the sentiment of the salaried middle class, who had previously expressed concerns over rising inflation and heavy taxation.
A week earlier, a C Voter survey conducted for India Today had revealed widespread pessimism among middle-class Indians, many of whom were struggling to manage their household budgets amid inflation and an increase in taxes.
However, the recent Budget has brought a noticeable change in this mood, replacing the despondency with cautious optimism.
While the middle class has not yet started celebrating, there is a definite sense of relief and hope, especially due to the generous tax changes. The announcement has restored confidence in the government's understanding of the needs of the common citizen.
The government's decision to raise the exemption limit for tax payers, from ₹7 lakh to ₹12 lakh, has proven to be an astute move. This increase in tax relief shows the Modi government's political instincts are in top form. Most notably, the salaried middle class has responded positively.
The survey shows that those earning between ₹20,000 and ₹50,000 per month rated the Budget at 6.53, while those earning between ₹50,000 and ₹1,00,000 gave it a 6.3 rating. These numbers reflect the growing approval for the measures aimed at relieving tax burdens.
Interestingly, the survey reveals that as age increases, so does the appreciation for the Budget. Older generations, who have worked for decades and have more disposable income, seem to be most satisfied with the Budget's provisions.
This cohort, which includes people planning for their retirement and providing for their children’s education, sees the Budget as a step in the right direction.
This appreciation is also linked to specific proposals in the Budget that benefit the middle-aged and older populations, such as the removal of the 20 pc TDS on loans taken to fund children's education abroad, and the exemption of customs duty on life-saving drugs.
However, the Budget has not resolved all concerns, particularly those related to inflation. Despite the tax relief, the middle class continues to worry about rising prices.
In the survey conducted post-Budget, about one-fourth of respondents expected prices to decrease, but more than 40 pc disagreed, predicting continued price rises.
This scepticism about inflation was also observed in previous years, with the exception of 2023 when an optimistic post-Covid recovery led to some irrational exuberance.
While inflation remains a challenge, the quality of life among middle-class Indians is slowly improving. The post-Budget survey indicates that one-fourth of respondents believe their quality of life has improved, although 36 pc feel it has worsened.
However, this sentiment is more optimistic compared to previous years, especially when compared to 2021 during the peak of the Covid pandemic, when over 50 pc of respondents felt their quality of life had deteriorated.
The real impact of the Budget measures will likely be felt in 2025, when income tax deductions will start to show in April salaries.
The salaried middle class, particularly those earning between ₹7 lakh to ₹12 lakh annually, will experience this relief in May 2025.
This financial boost will undoubtedly bring a greater sense of optimism and satisfaction, especially among those who have been hit hardest by the rising cost of living in recent years.
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