PM Modi Evokes Lakshmi To Hint At Special Budget Provisions For Poor And Middle Classes

Modi’s comments came a day ahead of the unveiling of the Union Budget 2025-26, marking the second full fiscal plan under his third term in office. Typically, the middle class, often keenly focused on tax scenarios, holds significant sway in Budget deliberations.

Tax Slabs and Economic Challenges

Indian tax brackets have remained largely unchanged since 2020, fueling demands for reform. Rising inflation has exacerbated the issue by pushing higher tax thresholds well below their original purchasing power. Furthermore, the economic slowdown, with GDP growth projected to slide from 8.2% in 2023-24 to 6.4% in 2024-25, underscores the urgent need for stimulus measures to boost consumer spending.

Potential Budget Announcements

While the specific measures remain undisclosed, predictions abound. Restoration of LPG subsidies, a promise often echoed by both the BJP and opposition parties, could be a possibility. The government might also augment its existing welfare schemes, which provide either income support (such as PM-KISAN) or asset creation opportunities (including PMAY and Jal Jeewan Mission).

However, in addressing these aspirations, the government will be cautious not to compromise its fiscal discipline goals. This prudent approach aligns with Modi’s invocation of Lakshmi’s association with both wealth and wisdom. “This Budget session will instill new confidence and vitality in achieving our vision of a developed India,” Modi affirmed outside Parliament.

Core Issues and Future Focus

Central to the government’s strategy are innovation, inclusivity, and investment. As the Economic Survey, a comprehensive report on the nation’s economic condition, is set for release on Friday, anticipation surrounds the forthcoming Budget. The document is expected to outline measures aimed at revitalizing the economy to make India the world’s third-largest by 2025, a goal set forth under Prime Minister Modi’s third term.

Currently ranked fifth globally in terms of economic size, India faces the dual challenge of delivering growth while ensuring fiscal stability. The impending Budget presents a critical juncture where policy decisions could shape the country’s economic future.