Benefits of the 2025-26 Budget
1. **Income Tax Relief:**
- The tax exemption threshold is raised to ₹12 lakh, reducing the tax burden on the middle class and increasing disposable income.
- The highest tax rate (30%) now applies to incomes above ₹24 lakh, making taxation more progressive.
2. **Economic Growth & Investment:**
- Nominal GDP is projected to grow at **10.1%**, showing strong economic momentum.
- The **National Manufacturing Mission** supports small firms and startups, boosting job creation.
3. **Agriculture & Farmers:**
- Special missions to increase **pulses and cotton production** will reduce import dependence and benefit farmers.
- Increased farm loan subsidies will help struggling farmers.
4. **Infrastructure & Connectivity:**
- Heavy investment in **infrastructure and regional air connectivity** will create jobs and boost economic activity.
5. **Foreign Investment & Business Growth:**
- **100% FDI allowed in insurance**, attracting more foreign investment.
6. **Energy & Sustainability:**
- The **100 GW Nuclear Energy Mission** supports clean energy goals.
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### **Losses or Challenges of the Budget**
1. **Fiscal Deficit Concerns:**
- The fiscal deficit is still **4.4% of GDP**, indicating high government borrowing.
2. **Limited Direct Support for the Poor:**
- While the middle class benefits from tax cuts, there are fewer new welfare schemes for low-income groups.
3. **Inflation Risks:**
- Increased spending could lead to higher **inflation**, affecting food and fuel prices.
4. **Agriculture Challenges:**
- While farm sector schemes exist, **MSP (Minimum Support Price) clarity** is missing, which could lead to farmer dissatisfaction.
5. **Execution & Bureaucracy:**
- Implementation of new policies like the **National Manufacturing Mission** could face delays due to bureaucracy.
Overall, the budget aims to stimulate growth and investment while providing tax relief. However, concerns over the fiscal deficit, inflation, and execution challenges remain.
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