As Finance Minister Nirmala Sitharaman prepares to unveil the Union Budget 2025-26, all eyes are on the government’s approach to tackling the pressing concerns of the common man. With rising inflation, job uncertainties, and the burden of indirect taxes, households across the country are eagerly anticipating relief in key areas—food, housing, education, and employment. The economic slowdown, coupled with high GST rates on essential goods and services, has made daily life increasingly difficult for middle- and lower-income families.
Beyond immediate relief, there is also a growing need for long-term reforms, particularly in taxation, skill development, and entrepreneurial support. As India strives to strengthen its workforce and compete on the global stage, policies promoting skilling, job creation, and tax rationalization will be crucial. This budget holds the potential to not only ease financial burdens but also lay the groundwork for a more inclusive and growth-driven economy. Will it live up to expectations?
An tax expert says that at this juncture, the general populace is particularly anticipating significant relief for essential needs such as food, clothing, and shelter. The recent surge in food prices, especially for vegetables, has adversely affected households with fixed incomes, whose purchasing power has diminished due to a lack of employment opportunities. As the job market continues to decline, numerous families have been compelled to curtail their overall consumption.
“The rising costs of vegetables, cooking oils, and milk can be attributed to unfavorable weather conditions, compounded by government-imposed duties on cooking oil, which further exacerbates the challenges faced by the average citizen. It is imperative to reconsider the Goods and Services Tax (GST) on fast-moving consumer goods (FMCG) and reduce it to the lowest possible rate,” he adds.
In addition to basic necessities, education represents a secondary priority for the common man, which should also receive attention in the budget. The GST on educational materials and stationery should be minimized. There should be an increased emphasis on skill-based learning, as well as a focus on enhancing technical skills. The emergence of technologies such as China’s DeepSeek AI tool highlights the urgent need for more skill development opportunities in India, which currently lags behind in technological advancements.
Furthermore, “the sluggish growth in wages, particularly for non-salaried workers, has a direct impact on consumption levels. The reverse migration resulting from the pandemic has created an urgent demand for job creation in urban areas, particularly for those engaged in agriculture. This budget should prioritize job creation initiatives and the implementation of labor incentive schemes to address these pressing needs,” he observes.
Tax reforms also remain a priority for the common people who are also the taxpayers of the country. Over the past few years, the expectations for revising income tax slabs have grown significantly. The common man anticipates an increase in the basic exemption limit, which would provide immediate relief to middle-class families. Some deductions which could encourage an increase in disposable income and investments will be a welcome sign.
The budget should also make the complex tax filing easier and more transparent.
Another tax expert says, “The Budget 2025 presents an opportunity to make tax filing more accessible and transparent for everyone. Leveraging AI-based income tax systems can not only streamline processes but also help identify fraudulent practices efficiently, ensuring fairness and accountability.”
Further, “revising outdated tax slabs and increasing the 80C deduction – which has remained unchanged for years – will provide a much-needed relief to taxpayers. Next, to boost entrepreneurship, introducing tax holidays and other benefits for startups and young entrepreneurs can provide the necessary impetus for innovation and job creation for the common man. Additionally, reducing GST on education to 5% will make learning and skilling more affordable, empowering students to invest in their future. If implemented thoughtfully, these measures can create a simplified, inclusive, and growth-oriented tax framework for all,” he adds.
In conclusion, the Budget 2025-26 has the potential to create a more inclusive economy by addressing the pressing needs of the common man. By balancing fiscal discipline with welfare initiatives, the government can chart a path of sustainable growth that empowers every citizen.
