Indian Union Budget 2025: Expectations, Reality, and What the Middle Class Gets

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The Union Budget 2025 has arrived at a crucial time when India’s economy is striving for recovery amid global uncertainties. With a projected GDP growth of 6.8% and inflation concerns looming, Finance Minister Nirmala Sitharaman unveiled a budget aimed at boosting infrastructure, agriculture, and social welfare. However, as history has shown, the real question remains—how much does the middle class truly benefit? From ₹11 trillion allocated for infrastructure to new tax exemptions, this budget attempts to strike a balance between fiscal discipline and economic growth. But does it succeed? Let’s break it down.

Key Highlights of India Union Budget 2025

1. Fiscal Deficit & Borrowing

  • The government has set a fiscal deficit target of 4.4% of GDP for 2025-26, down from 4.8% in the previous year.
  • Borrowing plans stand at ₹14.82 trillion for the upcoming fiscal year.

2. Tax Reforms – A Surprise for Middle-Class?

  • The non-taxable income threshold has been increased to ₹12 lakh per annum (finally, some relief?).
  • No new direct tax slabs were introduced, but additional deductions on home loans and investments were announced.
  • The corporate tax rate remains unchanged at 22% for domestic companies.

3. Agriculture and Rural Economy

  • A six-year program to boost pulses and cotton production has been launched, aiming to reduce reliance on imports.
  • Government procurement of pulses at Minimum Support Price (MSP) will continue to support farmers.

4. Infrastructure and Growth

  • Capital expenditure allocation increased by 12% to push infrastructure growth.
  • ₹11 trillion allocated for new highways, airports, and urban development projects.

5. Social Welfare and Subsidies

  • The food, fertilizer, and employment subsidies remain nearly flat at ₹4.57 trillion.
  • MGNREGA budget remains at ₹860 billion, keeping employment guarantee stable in rural areas.

Also Read – India’s Sensex Jumps as US Markets Falter – A Surprising Upswing


The Middle Class: The Forgotten Soldiers of Every Budget

Ah, the middle class, the ever-hopeful, always-disappointed category of Indian citizens who somehow continue to exist between the extremes of extreme wealth and extreme poverty. Every year, they dream of tax cuts, fuel price reductions, and maybe—just maybe—some extra money in their pockets. And every year, reality hits hard.

What Did They Get?

  • Higher tax exemption limit (₹12 lakh) – Great! News for the middle class
  • Fuel prices? Still high. “Sorry, global oil prices,” says the government.
  • No GST rate cuts on essential goods – because, why make life easier?
  • Household expenses remain the same or higher, thanks to rising costs of education, healthcare, and housing.

While the government proudly talks about “relief for the middle class,” the reality remains that this segment will still struggle with:

  • Rising EMIs due to fluctuating interest rates.
  • No major relief on petrol/diesel prices.
  • Higher indirect taxes on luxury and semi-essential goods (because who really needs ACs and refrigerators?).

Final Verdict: Growth, But At What Cost?

The Indian Budget 2025 shows a clear push for economic growth through infrastructure and agriculture investments, but the middle class remains the silent sacrificial lamb. While they are expected to shoulder the burden of tax collection, inflation, and policy changes, real benefits remain elusive.

As the dust settles, one thing is clear – “Achhe Din” are always coming, but never arriving.