Poll Economics

As Delhi votes today, the big question is whether the income tax relief announced in the Union Budget will have a meaningful impact on the electoral outcome.

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The hike in the tax rebate threshold from Rs 7 lakh to Rs 12 lakh has clear political undertones, especially in a city where the middle class dominates 67 per cent of Delhi is middle class against 31 per cent nationally the voter base. But is this enough to alter established political loyalties? The middle class in Delhi is not a monolithic bloc. It ranges from salaried professionals and small business owners to service providers and entrepreneurs, each with distinct economic concerns. In the past decade, the Aam Aadmi Party (AAP) has cultivated its appeal among this group through subsidised utilities, healthcare initiatives, and free public transport for women. These policies, often dismissed as mere populism by critics, have had tangible benefits for families managing rising costs in an expensive metropolis.