Union Budget 2025 wins praise for empowerment, growth, and tax relief
NEW DELHI : Economists have praised the Union Budget 2025 for providing substantial relief to middle-class income taxpayers, with hopes that the measures will stimulate economic growth and boost consumption.
Professor AP Tiwari, former head of the department of economics at Dr Shakuntala Misra National Rehabilitation University, said, “The finance minister has given significant relief to middle-class taxpayers to address the economy’s sluggish growth. This tax relief is expected to enhance purchasing power, increasing consumption and ultimately stimulating economic activity.” He further noted that the resulting rise in demand could also encourage savings and investment, widening the tax base and enhancing government revenue.
Tiwari also mentioned potential risks of tax revenue loss and possible price hikes due to the surge in demand. He stressed the importance of effective coordination between fiscal and monetary policies to mitigate these risks. He added, “The budget is a vision for a developed and superior India, aiming for self-reliance through focused investments in agriculture, healthcare, and future technologies like AI.”
Professor MK Agarwal, from the University of Lucknow’s economics department, expressed appreciation for the government’s recognition of the middle class’s contributions. “The middle class has supported the economy through increased tax filings, and after years of waiting, this relief, especially the ₹12 lakh tax-free income cap, is well received,” he said. Agarwal highlighted the upward revision in the standard deduction and tax deducted at source (TDS) relief for senior citizens as further positive developments.
Assistant professor of economics, Smita Mishra, from Vidyant Hindu PG College, also commended the budget, particularly the tax measures aimed at easing the financial burden on the middle class. “This budget offers a roadmap for a self-reliant India, focusing on sectors like education, health, agriculture, and technology,” Mishra said. She highlighted the focus on agriculture, MSMEs, and the Kisan Credit Card limit increase to ₹5 lakh, which could usher in a new phase of growth for the rural economy.
Mishra also welcomed the announcement of a new scheme to provide term loans of up to ₹2 crore to 5 lakh women, scheduled castes, and scheduled tribes over the next five years. “This initiative is a significant step toward empowering underserved communities,” she added.