Prime Minister Narendra Modi invoked goddess Lakshmi during his customary address to Parliament ahead of the Budget session, making special mention of the middle class and poor.
Addressing the media outside Parliament, Prime Minister Modi said, "I pray to Goddess Lakshmi to shower blessings on the poor and middle class." It is a source of great pride that India has completed 75 years as a democratic nation." According to him "innovation, inclusion and investment will be the basis of India's roadmap for economic activities" .
The message, which made specific references to the middle class and the poor, has fueled speculation that the government will introduce measures focusing on economic relief, tax breaks, and women-centric schemes. Finance Minister Nirmala Sitharaman, who tabled the Economic Survey 2024-25 today, will present her eighth consecutive budget to Parliament on February 1.
The Union Budget is expected to address the challenges of slowing economic growth while also providing relief to the middle class, which has been burdened by rising prices and stagnating wages. In the run-up to the Budget, salaried taxpayers have been anticipating tax relief in the form of lower rates and higher deductions.
Changes to income tax slabs and rates, if any, are expected to be included in the new tax regime, given the government's push for widespread adoption. According to government data, 72% of taxpayers have already adopted this regime.
According to several reports, major changes to the new tax regime are in the works, including plans to make income up to Rs 10 lakh tax-free and to introduce a new 25% tax slab for earnings between Rs 15 lakh and Rs 20 lakh. The focus is now on FM Nirmala Sitharaman's Budget 2025, with everyone eager to find out whether the income tax burden will be reduced in FY 2025-26.
