Taxpayers eye relief as PM seeks blessings for middle class, poor

DISRUPTIONS HAVE MARRED HOUSE SESSIONS OVER ISSUES SUCH AS HINDENBURG'S ALLEGATIONS AGAINST THE ADANI GROUP

- Smriti Kak Ramachandran

NEW DELHI: Prime Minister Narendra Modi on Friday appeared to respond to the growing clamour for income tax relief when he hinted at the possibility during his remarks ahead of the budget session of Parliament.

Modi invoked the goddess of wealth Lakshmi and said he was praying that she be especially generous to the poor and the middle class. If his prayer were to take tangible form in Saturday's budget, it would mean more welfare schemes (which are most relevant to the poor), and income tax relief for the middle class.

"Mother Lakshmi gives us success and wisdom. She also gives prosperity and well-being. I pray that Goddess Lakshmi's special blessings be upon every poor and middle-class community," said Modi in his customary address before the beginning of the budget session of Parliament. "I bow to Goddess Lakshmi as on such occasions, the virtues of Goddess Lakshmi have been remembered in our country for centuries."

Income tax slabs in India have not been changed much since 2020 and there has been a growing clamour for doing so on account of two reasons. Inflation has meant that higher slabs now kick in at much lower real incomes than what was the case earlier. And the slowdown in the economy—India's GDP growth went down from 8.2% in 2023-24 to an expected 6.4% in 2024-25—has necessitated the need for policy efforts to boost consumption.

It remains to be seen whether Modi's remarks lead to some big-bang announcement for the poor such as the restoration of LPG subsidies or an increase in the government's existing welfare programmes that support income (such as PM-Kisan Samman Nidhi) or help create assets (such as Pradhan Mantri Awas Yojana or Jal Jeevan Mission).

To be sure, the government will also need to be mindful of its fiscal consolidation imperative while delivering on these expectations, which is perhaps what Modi endorsed when he also talked about the goddess's relation to prudence.