Will Nirmala Sitharaman deliver much-needed Income Tax relief for middle class? Insights from PM Modi's address ahead of Budget 2025

New Delhi: Prime Minister Narendra Modi addressed the media today as Parliament commenced its Budget session, setting the stage for the Union Budget 2025, which Finance Minister Nirmala Sitharaman will present on February 1, 2025. During his address, PM Modi notably invoked the blessings of Goddess Lakshmi for the poor and middle class, emphasizing the government's commitment to uplifting these demographics.

A Vision for India's Future

In his remarks, PM Modi expressed pride in India's journey as a democratic nation over the past 75 years. He stated, "I pray that Goddess Lakshmi showers the poor, middle class with blessings. It is a matter of great pride that India completed 75 years as a democratic nation."

He further declared that this year's budget marks the first complete financial plan of his third term and is pivotal for India's aspirations leading up to its centenary of independence in 2047. "I can confidently say that in 2047, when India will complete 100 years of Independence, India will fulfill its aim of Viksit Bharat and this budget will give new energy and hope to the nation," he added.

Roadmap for Economic Growth

Highlighting the government's strategy, PM Modi stated that "Innovation, inclusion, investment basis of our roadmap for economic activities." He expressed optimism that the upcoming Budget session would instill renewed confidence and energy towards achieving the 'Viksit Bharat' goal. His focus on the middle class has sparked speculation about potential income tax relief measures in Budget 2025.

Anticipation Surrounding Income Tax Relief

As is customary, salaried taxpayers are keenly awaiting announcements regarding income tax adjustments. Experts have been advocating for a revision of income tax slabs under the new regime and an increase in standard deductions to enhance disposable income for the middle class.The backdrop to this year's budget discussions includes a slowdown in GDP growth, which has dipped to a two-year low of 5.4%. Economists suggest that reducing income tax rates could stimulate consumption and invigorate economic activity.

Looking Ahead to Budget Day

This upcoming budget represents the second financial plan under PM Modi's third term and marks Finance Minister Nirmala Sitharaman's eighth budget presentation. With significant expectations from various sectors, all eyes are on her speech to determine if FY 2025-26 will usher in a year characterized by lower income tax burdens.