TL;DR: The Union Budget 2025-26 aimed to boost the economy with tax breaks and increased capital expenditure. However, experts argue that it falls short in stimulating overall demand, creating non-farm jobs, and addressing the needs of marginalized communities.
Hey folks! Let's dive into the latest buzz about our Union Budget 2025-26. 📜💰
Tax Breaks: A Drop in the Ocean? 🏝️
The government gave income tax breaks to the middle class, hoping to boost spending. But, with only about 30 million taxpayers in a workforce of 600 million, this move might not be enough to kickstart the economy. Many middle-class families have been dipping into their savings just to get by, so these tax cuts might not lead to the shopping spree the government is hoping for.
Spending Less, Expecting More? 🤷♂️
Total government spending as a share of GDP has been dropping since the COVID-19 pandemic. For 2025-26, it's expected to be 14.2% of GDP, even though tax revenues are falling. While there's more focus on capital expenditure, like building infrastructure, cutting personal and corporate income taxes has reduced government revenues. This could mean less money for important social programs.
Where Are the Jobs? 🏭🔍
The budget introduces schemes to boost employment, like increasing credit for micro and small enterprises and promoting sectors like footwear, leather, and tourism. But with millions of new job seekers each year and many workers stuck in low-paying agricultural jobs, these initiatives might not be enough to make a big difference. The Economic Survey even admits that real wages haven't risen for 80% of workers in the last five years.
MediaFx Opinion: A Call for Inclusive Growth ✊🌾
This budget seems to favor the well-off, with tax cuts that might not benefit the majority. There's a need for policies that boost demand from the grassroots, create non-farm jobs, and support marginalized communities. Investing in social sectors like education, health, and skill development is crucial for building a fair and just society.
What are your thoughts on the budget? Drop your comments below! 🗣️👇
