PM Modi Highlights Tax Relief in Budget 2025, Criticizes Congress-Era Policies
Prime Minister Narendra Modi addressed a public gathering in New Delhi on February 2, 2025, a day after Finance Minister Nirmala Sitharaman presented the Union Budget. In his speech, he took a dig at the taxation policies implemented during the tenure of former Prime Ministers Jawaharlal Nehru and Indira Gandhi, contrasting them with the recent tax relaxations introduced by his government. Speaking ahead of the Delhi Assembly elections at RK Puram, he emphasized the significant reduction in the tax burden for middle-class individuals under the current administration.
Explaining the differences in taxation over the decades, the Prime Minister provided a comparative analysis to illustrate the relief offered by the new budget. He remarked that if an individual earned ₹12 lakh annually during Nehru’s time, they would have to part with a quarter of their earnings as tax. The situation was even more severe in Indira Gandhi’s era, where a person with the same income would end up paying nearly ₹10 lakh in taxes. He stressed that excessive taxation during those times left people with little disposable income and hindered financial growth.
Drawing attention to more recent years, he stated that even 10 to 12 years ago, under the Congress-led government, an individual with a ₹12 lakh annual income was liable to pay ₹2.6 lakh in taxes. In contrast, with the new provisions introduced in the latest budget, those earning ₹12 lakh annually will now be exempt from paying any income tax. This, according to the Prime Minister, is a major step towards empowering the middle class by allowing them to retain more of their earnings, which will, in turn, boost spending and economic growth.
The Finance Minister’s budget announcement on February 1, 2025, included this significant tax relief, aimed at providing financial ease to salaried professionals and middle-class citizens. PM Modi lauded this move, calling it a “people’s budget” that ensures economic empowerment by increasing disposable income. He argued that this approach will act as a catalyst for economic development, fostering greater investments and driving national progress.
Apart from tax-related announcements, the budget also focused on multiple developmental initiatives, including infrastructure, defense allocations, and welfare programs. The government’s decision to exempt income tax for those earning up to ₹12 lakh per annum is expected to provide major relief, especially in urban centers where cost of living has been steadily rising. This tax exemption is aligned with the government’s broader vision of improving financial conditions for the middle class while stimulating economic activity through higher disposable income.
In his speech, PM Modi underscored how taxation policies under previous administrations placed a heavy financial burden on citizens, making it difficult for them to save and invest. In contrast, the current policies are structured to reduce financial stress while fostering national economic stability. He also pointed out that such reforms are crucial in shaping a stronger economy, as higher personal savings and investments translate into greater business opportunities and job creation.
The Prime Minister’s remarks were also strategically timed, given that Delhi is gearing up for its Assembly elections. By emphasizing the fiscal advantages of the recent budget and comparing them with past policies, he aimed to highlight his government’s commitment to economic progress. His speech reinforced the idea that easing tax burdens plays a crucial role in fostering national development while enhancing financial freedom for citizens.
As discussions on the budget continue across political and economic circles, the latest announcement is being seen as a game-changer for taxpayers. The reduction in tax liabilities will likely contribute to higher savings, greater investments, and an overall boost in market confidence. Whether these measures translate into electoral success for the ruling party remains to be seen, but they have certainly brought financial relief to many citizens.
With growing debates surrounding economic policies, tax reforms, and their long-term impact, the government’s decision to exempt income tax for those earning up to ₹12 lakh per annum marks a significant shift in financial governance. PM Modi’s emphasis on these reforms signals a continued push for policies that aim to empower the middle class while ensuring sustainable economic growth.