Budget 2025: Top 6 expectations from the middle class

As the Union Budget 2025 draws near, the hopes of India’s middle class, particularly salaried individuals, are soaring. Straddling the line between aspirations and financial constraints, this segment eagerly awaits measures that could ease their financial burdens and improve their quality of life.

The middle class is not just an economic demographic; it represents the backbone of the nation, dreaming of policies that balance affordability with opportunity.

Here’s a look at their wishlist:

LOWER INCOME TAX RATES

Top of the wishlist is a reduction in income tax rates. With rising expenses, salaried individuals are looking for relief that leaves more money in their hands, allowing them to save, invest, or spend as needed.

HIGHER HRA AND STANDARD DEDUCTIONS

Housing and daily expenses form a large part of middle-class budgets. Revisions in House Rent Allowance (HRA) exemptions and standard deductions would go a long way in addressing these costs, providing much-needed financial respite.

AFFORDABLE HOUSING INITIATIVES

Owning a home remains a cherished aspiration for many middle-class families. Policies to make housing loans more accessible and incentives for first-time buyers are high on their wishlist.

BOOST TO SAVINGS AND INVESTMENTS

Increased avenues for tax-saving investments are another key expectation. Enhanced support for retirement savings, education funds, and healthcare investments could help families secure their future while reducing their tax liability.

RELIEF FROM RISING COSTS

With inflation affecting essential expenses, middle-class families are looking for measures to alleviate the cost of living. This includes subsidies or support in education, healthcare, and transportation sectors.

INCREASED SAVINGS OPPORTUNITIES

The middle class dreams of better avenues for savings, including policies that encourage investments in retirement funds, education, and healthcare without excessive taxation. Savings are the cornerstone of financial security, and reforms here could create a significant impact.

The Union Budget is more than just numbers; it reflects the government’s vision for its people. As the countdown to February 1 begins, the middle class dreams of a Budget that not only addresses immediate concerns but also paves the way for long-term prosperity. Will this year’s Budget meet their expectations? Only time will tell.