The much-anticipated Union Budget 2025 is set to be presented on February 1, 2025, and like every year, the common man is waiting with bated breath. Will there be tax relief, or will inflation take a bigger bite out of household savings? Will essential goods become affordable, or will fuel prices shoot up again? While economists analyze numbers, let’s break down what really matters—how it affects the pockets of ordinary Indians.
Income Tax: More Savings or More Payments?
One of the biggest expectations from Budget 2025 is changes in income tax slabs. The government may offer tax relief to the middle class, especially after inflationary pressures over the past year. With increasing support for a revision in tax exemptions and deductions under the new tax regime, taxpayers are hopeful for higher rebate limits. However, there are also concerns that to compensate for reduced tax collections, the government may introduce new indirect taxes that could impact daily expenses.
Inflation: Will Prices Go Down or Up?
The common man’s biggest worry is inflation, which continues to impact essential commodities. The 2024 economic slowdown led to higher food and fuel prices. If the government increases subsidies on food grains, LPG, and fuel, there might be temporary relief. However, if fuel excise duties rise, we could see another surge in transportation costs, which would increase the price of everyday essentials.
Savings and Investments: Will Your Money Grow?
With constant fluctuations in interest rates, many Indians are worried about their savings and investment returns. The government might introduce higher incentives for Public Provident Fund (PPF), Employee Provident Fund (EPF), and Fixed Deposits (FDs). Additionally, there could be more tax exemptions on investments in mutual funds, stocks, and bonds to encourage financial growth. However, if fiscal deficit concerns rise, these benefits may be limited.
Petrol, Diesel, and LPG Prices: A Budget Reality Check
Every Indian household is directly impacted by fuel prices. If the government reduces excise duty on petrol and diesel, it could mean a drop in transportation costs, leading to lower prices for goods. However, with global crude oil fluctuations, it is likely that taxes will either remain unchanged or slightly increase, adding to financial strain for the middle class.
Employment and Salary Growth: Any Good News?
After a year of layoffs in IT, manufacturing, and startups, employment remains a major concern. The government is expected to introduce new job creation schemes, infrastructure projects, and incentives for startups and MSMEs. The question is: will these actually translate into higher salaries, or will they remain on paper like many past promises?
Subsidies and Welfare: Who Will Benefit?
From free ration schemes to direct benefit transfers (DBT), many government welfare programs are expected to get a budget boost. The government may expand existing PM-Kisan Yojana, health schemes, and urban employment programs. However, how these will be funded remains a big question—higher taxes or reduced spending elsewhere?
Final Verdict: Will the Common Man Gain or Lose?
Budget 2025 will either ease financial burdens or create new challenges. While income tax relief is highly expected, it remains to be seen whether the government introduces indirect taxes to compensate. Inflation control, job creation, and welfare schemes will be crucial in determining whether this budget brings real relief to the common man or adds more economic stress.
Stay tuned for February 1, 2025—because your wallet might feel the impact more than you expect!