Union Budget 2025: Forget me not

432 million — that’s the number of people who will patiently await the Budget, often only to be disappointed. Of course, the rest of the nation, rural masses, and corporate India are also watching the Budget; but somehow for middle class India, it feels more personal. How much money will be flicked from its pockets, how much will be put back? This year, India’s stressed and strained middle class has but one wish from the Union Finance Minister, Nirmala Sitharaman, ‘forget me not’. The last few years have been brutal on this 31 per cent of Indian population — urban jobs have been few, food prices have steadily increased, and savings have dropped. The Indian middle class has had reason to feel neglected; considered as one of the primary drivers of the economy with numbers touching 38 per cent by 2031 and 60 per cent by 2047, it’s in the economy’s interest, to keep it propitiated.

The Indian middle class isn’t asking for much — just the ability to enjoy a stable, secure, and healthy standard of living. National consumption has reached worrying lows and the optimum way of correcting this downward trajectory would be with higher capital expenditure made by the government. Bringing down food inflation would immensely ease household expenses, making insurance affordable and simplifying personal income tax would be essential to win over the aam aadmi’s (common man) trust.

In fact, rationalisation of GST rates would positively impact all sectors of industry and segments of life. The most vociferous demand emanating from all quarters has been to make sense of GST rates that have frankly, been bizarre, in some instances. Any government’s main objective is to expand the taxpayer base and improve tax collection. But if that comes at the cost of breaking the back of the taxpayer, there won’t be any left to tax.

Tax reforms such as increasing the income tax threshold for the 30 per cent tax bracket to Rs 18 lakhs, reorganising tax brackets, and implementing a blanket 30 per cent deduction on gross income, are prayers on people’s lips. Such moves are necessary to alleviate the burden on the affluent taxpayer who is also plagued by the ‘high inflation, low growth’ economic trend. Providing support to the country’s MSME sector through interest subvention schemes and credit availability are also highly recommended. An ongoing push to infrastructure with special focus on sustainability, enhanced allocation to education and healthcare, along with an intricate plan for skill development and job creation are immediate areas of action for the government. Impetus to affordable housing, healthcare R&D. Financial support for startups and small businesses, tax relief on ESOPs (Employee Stock Ownership Plan), foreign sovereign wealth funds, and capital gains reform are on the investors’ wish-list. Incentivising long-term investment may also be on the cards.

It’s an uncertain world out there replete with sudden climate events, raging wars, and advent of new political regimes — Indians need a boost to their confidence and national growth. In an unpredictable world, we must feel protected by our government’s actions and policies. This second full budget of Modi 3.0 bears the whisper of that promise as it carries with it the opportunity to strengthen the beliefs of a billion plus people. I’m always fascinated that the Union Budget is scheduled a fortnight before Valentine’s Day — what better way to show love for the people than by proffering a balanced financial statement that safeguards the aspirations of the citizens.

The writer is an author and media entrepreneur. Views expressed are personal