Budget tightens grip on a citizen's wallet

The government's 2025 Union Budget promises growth, innovation, and self-reliance. But beneath the ambitious rhetoric, one persistent problem remains unaddressed - over-taxation.

- SHREY MADAAN

The ever-growing tax burden on consumers and businesses continues to stifle economic activity, reduce purchasing power, and limit choices for ordinary Indians. While the government proudly claims that its policies will accelerate growth, its taxation approach achieves exactly the opposite of its stated goals.

The Indian tax system remains a big black hole, where high direct and indirect taxes consume a sizable chunk of disposable income and stifle consumer spending. The economic survey also acknowledges India's struggle to bolster the production of essential goods to aid economic growth. Yet, instead of reducing financial strain and simplifying taxes so that production is easier and ordinary consumers have more money to spend, the budget reinforces the system that drains taxpayers without delivering benefits.

The government's National Manufacturing Mission aims to bolster India's industrial sector, but high taxes on raw materials and corporate earnings discourage risk-taking and innovation. Consider India's EV sector, which faces import duties of up to 70 per cent on key components.