The 2025 Union Budget is more than an economic plan—it’s a pre-election strategy designed to secure votes, especially in Delhi and Bihar, where elections were announced. With a large portion of Delhi’s voters comprising the salaried middle class, tax cuts and infrastructure projects seemed to be aimed at securing their votes. Meanwhile, allocations for Bihar, including ₹11,500 crore of financial support for the Western Koshi Canal Extension, Renovation, and Modernisation (ERM) Project, and a new Makhana Board for foxnut farmers, a greenfield airport, plans to expand infrastructure at IIT Patna and set up a National Institute of Food Technology, Entrepreneurship, and Management serve more as political appeasements to alliance partners than genuine development efforts.
The government is calling this a “People’s Budget,” but who are the real beneficiaries? While tax breaks have been highlighted as a major relief, they only benefit about 2% of India’s taxpayers. The vast majority—nearly 90% of Indians earning less than ₹25,000 per month—see no real relief. Instead of reducing direct taxes on corporations, the government continues to rely on indirect taxes like GST, which disproportionately impact the poor. Pension remains stagnant as Rs 200 per month for the elderly and Rs 300 per month for widows and persons with disabilities since 2007 and 2012 respectively, and MGNREGA funding stagnates at ₹86,000 crore despite rising demand. Food subsidies have been cut amid soaring prices, further neglecting rural welfare and increasing economic distress.
Though the government claims unemployment is down to 3.2%, this figure masks a deeper crisis. Stable, salaried jobs are scarce, and self-employment is often out of necessity rather than choice. Women’s participation in formal jobs is declining, pushing many into informal and unpaid labor.
Corporate profits have surged to a 15-year high, yet job growth remains sluggish at just 1.5%. Meanwhile, ₹16.5 lakh crore in bad loans has been written off for corporations, while MSMEs and farmers struggle with stagnant credit access and rising debt burdens.
This budget seems to prioritise corporate interests and political calculations over the welfare of the people. Rather than focusing on strengthening social security, expanding employment opportunities, and tackling climate resilience, the government has chosen policies that deepen economic disparities, leaving millions to struggle with rising living costs and mounting uncertainty. The 2025 budget is yet another example of missed opportunities and misplaced priorities.
– Team CFA