Economists have praised the Union Budget 2025 for delivering significant relief to middle-class income taxpayers, expecting that the initiatives will encourage economic growth and enhance consumption.
Professor AP Tiwari, the former head of the economics department at Dr. Shakuntala Misra National Rehabilitation University, stated, “The finance minister has provided considerable relief to middle-class taxpayers in response to the slow growth of the economy. This tax break is anticipated to boost purchasing power, raise consumption, and ultimately stimulate economic activity.”
He additionally pointed out that the consequent increase in demand may also promote savings and investment, broadening the tax base and boosting government income.
Tiwari pointed out possible dangers related to tax revenue decrease and potential price increases resulting from the rising demand. He emphasized the significance of proper coordination between fiscal and monetary policies to reduce these risks.
He stated, “The budget represents a vision for an advanced and thriving India, striving for self-sufficiency through targeted investments in agriculture, healthcare, and emerging technologies such as AI.”
Professor MK Agarwal from the economics department at the University of Lucknow praised the government for acknowledging the contributions of the middle class.
“The middle class has bolstered the economy by filing more taxes, and after years of anticipation, this relief, particularly the ₹12 lakh tax-free income limit, is appreciated,” he stated. Agarwal pointed out the increase in the standard deduction and the tax deducted at source (TDS) relief for senior citizens as additional positive developments.
