A detailed analysis of union budget 2025-26 presented by Nirmala Sitharaman, finance minister reveals critical shortcomings that demand attention, particularly in areas such as salaried employees, job creation, inflation control, wage growth, and measures to counter global trade challenges. Despite it, The Union Budget has received a praise for providing significant tax relief of rs 12 lakh per annum to the middle class and several welfare measures.

Lack of Substantial Relief for the Poor and Rural Sector; Middle-Class Benefits, but Little for Low-Income Groups: While tax exemptions benefit the middle class, lower-income groups receive limited direct relief.

Rural Distress Overlooked: Employment schemes like MNREGA saw no significant increase, despite rising rural distress. Additionally, there were no major announcements for food security programs or direct cash transfers to the poor.

Limited Allocation for Social Sectors (Health & Education) ;Underfunded Health and Education: The budget fails to make substantial investments in health and education, sectors that urgently need stronger public spending. Healthcare spending remains below 3% of GDP, which is insufficient to bridge gaps in public healthcare infrastructure.

Education Reforms Fall Short: While digital learning reforms are emphasized, there is no significant push to improve rural schools or recruit more teachers.

Concerns about Fiscal Deficit and Rising Debt; Higher Fiscal Deficit and Debt Risks: Increased infrastructure spending has resulted in a higher fiscal deficit, raising concerns about long-term fiscal sustainability. Market borrowing remains the primary source of financing, potentially driving up interest rates and affecting private investments.

Unclear Revenue Plans: The absence of clear strategies for revenue generation beyond disinvestment raises concerns about the government’s ability to manage debt repayment.

No Major Boost for Job Creation; Lack of Direct Job........

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