PM Modi teases special Budget perks for poor, middle class

Prime Minister Narendra Modi on Friday suggested that the upcoming Budget may offer significant relief for the poor and middle classes. Referring to Lakshmi, the Hindu goddess of wealth, Modi said he was praying for her special generosity toward these groups. At the same time, he stressed the need for financial prudence and economic achievements.

His remarks came just a day before his government presents its second full Budget in its third term. Many expect the Budget to include something extraordinary for the poor and middle classes. The middle class, in particular, watches income tax policies closely since they directly impact their finances.

India has not revised its income tax slabs significantly since 2020. Inflation has pushed many taxpayers into higher brackets, making revisions more urgent. Meanwhile, economic growth has slowed. India’s GDP dropped from 8.2% in 2023-24 to an expected 6.4% in 2024-25. This decline has increased pressure on the government to boost consumption through policy measures.

Modi’s comments raise speculation about major relief measures. The government may restore LPG subsidies, a demand raised in multiple state elections. It could also expand welfare programs like PM-KISAN, which supports farmers, or PMAY and Jal Jeevan Mission, which build assets for low-income families.

Balancing these expectations with fiscal discipline remains a challenge. Modi hinted at this when he linked Lakshmi to prudence. Speaking outside Parliament before the Budget session, he expressed confidence that the session would energize India’s push toward becoming a developed nation. He emphasized innovation, inclusion, and investment as key pillars of economic growth.

The government will release the Economic Survey on Friday, offering a snapshot of the economy. On Saturday, Finance Minister Nirmala Sitharaman will present the Union Budget for 2025-26. The Budget will likely focus on regaining economic momentum. Modi’s government aims to make India the world’s third-largest economy during this term. Currently, India ranks fifth.

All eyes are now on the Budget. Will it deliver major tax relief? Will welfare schemes see an expansion? As Modi sets the stage for economic reforms, expectations are high.