Union Budget 2025: Will Nirmala Sitharaman Announce Major Tax Cuts for Salaried Class?
Union Budget 2026: From Farmers to High-Speed Corridors, Modi Government Announces 15 Major Reforms
On Saturday, Finance Minister Nirmala Sitharaman will unveil her eighth consecutive Union Budget. The salaried population is hoping for significant relief in income tax rates and slabs to help alleviate the impact of inflation. On Friday, the minister finalized the Budget document in preparation for the presentation. The finance ministry shared a post on X, stating, “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.”
Here are 10 important points to consider before Nirmala Sitharaman’s budget speech:
1. The Economic Survey presented by Sitharaman in Parliament predicts India’s GDP growth to be between 6.3% and 6.8% for the financial year 2025-26. This suggests that while India’s growth remains strong, it is slowing down, and more efforts are needed to reach the nearly 8% annual growth rate necessary to achieve the Viksit Bharat target by 2047.
2. The middle class has high expectations following Prime Minister Narendra Modi’s invocation of Goddess Lakshmi, the goddess of wealth, to uplift the poor and middle class. The Prime Minister expressed, “I pray to Goddess Lakshmi that the poor and the middle-class sections in the country are blessed by her.”
3. This will be the Modi government’s second full budget during its third term, and it comes amid geopolitical uncertainties and an economic growth rate that has hit a four-year low. Additionally, new US President Donald Trump has threatened tariffs against countries, including India.
4. Analysts and experts are anticipating some tax rationalization, a push for exports, improved implementation of capital spending plans, and a clear roadmap for structural reforms in the upcoming budget.
5. DK Srivastava, Chief Policy Advisor at EY India, mentioned that “As we navigate a challenging economic landscape, the upcoming budget must balance fiscal prudence with growth-oriented measures.” He emphasized that increasing capital expenditure and putting more disposable income in the hands of consumers, especially urban ones, will be crucial for boosting growth in domestic demand.
6. Karnataka Chief Minister Siddaramaiah has urged the Centre to acknowledge the state’s contributions and ensure a ‘just and proportional’ distribution of resources. He criticized the Union government for its ‘discriminatory approach’ towards Karnataka, stating, “Instead of treating states merely as revenue-generating units, the Centre must respond to their financial challenges with fairness and empathy. When it comes to resource allocation, including tax devolution, the Centre must follow scientific and equitable standards.”
7. On Friday, Congress General Secretary K C Venugopal reached out to Finance Minister Nirmala Sitharaman to express concerns from NRIs regarding the recent changes in capital gains taxation on real estate, according to PTI. He requested that the upcoming Budget include the same tax benefits for NRIs that have been granted to other citizens.
8. Rahul Gandhi, the Leader of the Opposition in the Lok Sabha, pointed out the lack of representation for Dalits, tribals, backward classes, and minorities in the budget preparation process. He mentioned, “Tomorrow you will see the finance minister arriving with a briefcase. A photo will be taken, but you won’t see any Dalit, tribal, backward class, or minority individuals in it. Out of 90 officers preparing the budget, only 3 are from OBC backgrounds. Your population is 50 percent, and if 100 rupees are allocated in the budget, only 5 rupees will be decided by your officers,” Gandhi stated.
9. The Congress party held a meeting on Friday at the residence of Congress Parliamentary Party chief Sonia Gandhi at 10 Janpath, as reported by PTI. The party announced that it would address issues such as inflation, unemployment, the Maha Kumbh stampede, and the alleged disrespect towards B R Ambedkar.
10. The government of Himachal Pradesh and various groups within the state are looking forward to the Union Budget for 2025-26 with high hopes. Chief Minister Sukhvinder Singh Sukhu emphasized that the state currently lacks an international-standard airport and urged the Union government to cover the entire cost of constructing such an airport, as reported by news agency.
