Salaried Class Hopes for Tax Relief in Nirmala Sitharaman’s Upcoming Budget

Finance Minister Nirmala Sitharaman will present her eighth consecutive Union Budget on Saturday. As inflation continues to affect many, the salaried class hopes for tax relief to ease their financial strain.

On Friday, the minister put the final touches on the Budget document before its presentation.

Final Preparations

The finance ministry shared on X, “Union Minister for Finance and Corporate Affairs Smt. @nsitharaman interacts with the Secretaries and senior officials involved in the Budget making process @FinMinIndia while giving final touches to the Union Budget 2025-26 at her office in North Block, New Delhi, today.”

Economic Growth Projections

Looking ahead, the Economic Survey projects India’s GDP growth for FY 2025-26 to fall between 6.3% and 6.8%. This indicates a slowdown in growth, with more action required to meet the 8% annual growth needed to reach the Viksit Bharat target by 2047.

Middle-Class Expectations

In the wake of Prime Minister Modi’s invocation of Goddess Lakshmi, there is a heightened expectation from the middle class. “I pray to Goddess Lakshmi that the poor and the middle-class sections in the country are blessed by her,” said the Prime Minister.

Economic and Geopolitical Challenges

The Budget will be presented amidst geopolitical uncertainties and slowing economic growth, with the growth rate at a four-year low. Additionally, new U.S. President Donald Trump’s tariff threats against India add further complexity.

Focus on Tax Reforms and Structural Changes

Analysts expect the government to implement tax rationalization and push for export growth. They also anticipate improved capital spending and a clearer roadmap for structural reforms in the Budget.

Growth-Oriented Measures

DK Srivastava, Chief Policy Advisor at EY India, suggests that the Budget should focus on fiscal prudence while promoting growth. Increasing capital expenditure and putting more disposable income in the hands of urban consumers will help stimulate domestic demand and growth.

Karnataka’s Concerns

Meanwhile, Karnataka’s Chief Minister, Siddaramaiah, urged the Centre to recognize the state’s contribution and ensure a fair distribution of resources. He criticized the Union government for its “discriminatory approach” and called for more empathy in financial decisions.

NRIs’ Tax Concerns

Congress General Secretary K C Venugopal raised concerns over the taxation of capital gains on real estate, particularly for NRIs. He urged the Finance Minister to extend the same tax benefits to NRIs as those granted to other citizens.

Opposition Criticism

Leader Rahul Gandhi highlighted the lack of representation for Dalits, tribals, backward classes, and minorities in the budget-making process. “Tomorrow you will see that the finance minister will go with a briefcase… You will not see a single Dalit, a tribal, a backward class person or a minority in the photo,” Gandhi said.

Congress’s Agenda

The Congress party plans to raise critical issues during the Budget discussion, including inflation, unemployment, the Maha Kumbh stampede, and the alleged disrespect to B.R. Ambedkar.

Himachal Pradesh’s Demands

Lastly, Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu appealed for the Centre’s support in funding the construction of an international-standard airport in the state.