Tax relief to boost financial savings, consumption for urban Indians: Goldman Sachs

Multinational investment banking company Goldman Sachs said that the mega tax relief provided for in Budget 2025 will help the urban consumers boost their net household financial savings, besides partly boosting their consumption.

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Goldman Sachs, in its India-focused report, noted further fiscal consolidation plans and a tilt towards the urban consumer in the budget.

"The net fiscal impulse drag on growth in 2025-26 will be smaller than in 2024-25," the report said.

Fiscal impulse is a parameter used to measure the changing impact of the Budget on the overall economy.

The government announced in the February 1 Budget that no income tax will be payable on income up to Rs 12 lakh, providing significant relief to taxpayers, especially the middle class. Earlier, this limit was Rs 7 lakh.