PM Modi suggests Budget aid for poor.
Prime Minister Narendra Modi invoked the Hindu goddess of wealth, Lakshmi, expressing his prayers for her special blessings upon the poor and middle classes. Speaking ahead of the upcoming Budget, he emphasized the government’s commitment to economic growth and financial relief for vulnerable sections of society. Modi’s remarks hinted at potential provisions aimed at uplifting lower-income groups and ensuring equitable prosperity. By evoking Lakshmi, he reinforced cultural and spiritual sentiments while addressing economic concerns. His statement signals expectations of welfare-oriented measures that could benefit millions across the country in the forthcoming Budget.
Prime Minister Narendra Modi, on Friday, hinted at the possibility of a more generous Budget focused on the poor and middle classes. In a symbolic gesture, he invoked the Hindu goddess of wealth, Lakshmi, offering prayers for her special blessings on these vulnerable sections of society. Modi’s statement came just a day before the government is set to present its third full Budget under his leadership, leading to speculation that the Budget could include measures to aid those who have been hit hardest by economic challenges in recent times.
While his comments carried a hopeful tone for the marginalized, Modi also emphasized the need for financial prudence and fiscal responsibility. This balance between offering relief to the economically disadvantaged and maintaining careful governance has always been a hallmark of Modi’s policy approach, especially in the context of India’s increasingly complex economic landscape.
The Prime Minister’s remarks appear to signal an upcoming Budget that may include provisions aimed directly at the poor and middle classes. This is a significant shift, as historically, middle-class voters have expressed interest primarily in changes to income tax rates, which fall under the direct purview of the Budget. The middle class in India, long considered the backbone of the nation’s economy, has often been seen as most invested in the finer details of tax policies. Given the substantial role they play in consumption, their financial well-being is crucial to sustaining growth and ensuring the economy remains buoyant.
The issue of income tax slabs has been one of the most hotly debated topics in recent years. Since 2020, there has been very little change in these slabs, despite the growing calls for reform. The lack of adjustments has become a point of concern for many, as inflation has significantly eroded purchasing power. What was once a comfortable income level in the past now places individuals in higher tax brackets, which many feel is unfair given the increase in the cost of living. Higher income tax slabs, set at thresholds from several years ago, now kick in at much lower real incomes than they did in the past.
Moreover, the country is grappling with a slowdown in economic growth, with India’s GDP growth rate forecast to decline from 8.2% in 2023-24 to 6.4% in 2024-25. This dip in growth has raised concerns about how the government will tackle the slowdown and boost consumption. A weaker economy means less disposable income for the average person, further straining the financial situation of the middle class. The ongoing challenges posed by inflation, coupled with sluggish economic growth, have led to a renewed clamour for changes to the tax system, as citizens look for relief to ease their financial burdens.
In light of these concerns, there has been increasing pressure on the government to revise income tax slabs, especially for the middle class. Many experts argue that inflation-adjusted tax slabs would help ensure that people’s earnings are taxed more fairly, while also providing a necessary stimulus to boost consumer spending. By putting more disposable income back in the hands of the middle class, the government could stimulate demand and spur economic growth. This, in turn, could have a multiplier effect, helping various sectors of the economy recover from the slowdown.
In addition to tax reforms, there have been growing calls for measures that directly address the needs of India’s poor. The pandemic-induced economic shocks hit the poorest sections of society the hardest, and the recovery process for these groups has been slow. With inflation pushing up the prices of essential goods and services, many individuals and families find themselves struggling to meet basic needs. As a result, there is a heightened demand for policies that will provide direct financial relief to these groups.
There are also increasing calls for more robust welfare schemes that can help cushion the impact of economic downturns on vulnerable sections. Measures such as expanded food and cash transfer schemes, as well as targeted subsidies for essential goods, could play a critical role in supporting the poorest citizens of the country. By improving access to basic necessities, these measures could help reduce the burden on families that are most at risk of falling deeper into poverty due to economic challenges.
The idea of a more compassionate Budget, with an emphasis on the needs of the poor and middle classes, is not only politically popular but also economically necessary. With consumption being a major driver of India’s economy, ensuring that the middle class and the poor are adequately supported could play a crucial role in stabilizing the economy and ensuring long-term growth. The government must therefore balance short-term relief efforts with long-term reforms that can bring about lasting change for these groups.
Looking ahead, Modi’s invocation of Lakshmi could be seen as an attempt to align the government’s fiscal policies with broader cultural and spiritual values. In Hindu tradition, Lakshmi is considered the goddess of wealth and prosperity, and her blessings are believed to bring success and abundance. By invoking Lakshmi in this context, Modi is signaling that the government is working towards creating a more prosperous future for all sections of society, especially those who need it most. This blend of cultural symbolism with economic policy could resonate with many citizens, reinforcing the message that the government is committed to ensuring the welfare of the people.
However, while the Prime Minister’s remarks have raised hopes of a more inclusive Budget, it remains to be seen what specific provisions will be included. Whether it will result in concrete changes to income tax policies, direct welfare transfers, or other measures remains uncertain. What is clear, however, is that the upcoming Budget could play a pivotal role in shaping the economic landscape for the coming year, especially for the middle and lower-income classes. The government’s ability to address the concerns of these groups will be key to ensuring stability and prosperity in the post-pandemic economy.