PrashantNews
Experts on Saturday described the Union Budget 2025-26 as progressive saying it would shore up flagging demand and consumption to help boost the Indian economy.
Amid fears of a slowdown and global challenges, economists and industry bodies have urged the government to take steps for boosting the economy in view of the weaker annual growth this fiscal.
“This is a very progressive budget because when the savings take place, they will boost consumption and demand,” said Indu Kumar Pande, former chief secretary of Uttarakhand. However, Pande, who also headed the state finance department for a long time, said once the new pay commission comes into effect, the benefits of the new income tax regime will become less.
Similar views were echoed by Industries Association of Uttarakhand (IAU) President Pankaj Gupta who described the budget as “Bharat Budget of the aam adami.” “This is one of the most progressive budgets in India. It will also boost the MSME sector particularly in states like Uttarakhand,” Gupta said. He said this budget increased the credit guarantee for MSME startups from Rs 10 cr to Rs 20 cr. “I would say the budget has also focused on rural development and manufacturing,” he said.
“This is an aam admi budget because you don’t have to pay tax upto Rs 12 lakh and standard deduction limit has been increased from 50,000 to 75000. Through the income tax exemption, a common man can get an additional bucket for buying and paying EMIs. Hence it is a good budget for the common man,” said Jyotsna Dwivedy, a Dehradun-based income tax expert.
The CII Uttarakhand said the Union Budget presents a forward-looking roadmap for India’s economic transformation, with a strong push for innovation, entrepreneurship, and infrastructure development.
The enhanced support for MSMEs, focus on skill development, and urban transformation initiatives will be instrumental in driving industrial growth and job creation, particularly in the Northern Region, the CII said. It welcomed these strategic measures and looks forward to working closely with the government to accelerate their implementation for a more competitive and inclusive economy.
Reposing faith on middle class in nation building, the Union Budget 2025-26 proposes new direct tax slabs and rates under the new income tax regime so that no income tax is needed to be paid for total income upto ₹ 12 Lakh per annum, i.e. average income of Rs 1 Lakh per month, other than special rate income such as Capital Gain.
Salaried individuals earning upto ₹ 12.75 Lakh per annum will pay NIL tax, due to standard deduction of ₹ 75,000.
Towards the new tax structure and other direct tax proposals, Government is set to lose revenue of about ₹ 1 lakh crore.