Mon Dec 30 15:10:00 UTC 2024: ## Finance Minister Hints at Limited Tax Relief for Middle Class in Upcoming Budget

**New Delhi** – Finance Minister Nirmala Sitharaman acknowledged the need for greater middle-class tax relief ahead of the Union Budget 2025-26, but indicated that budgetary constraints may limit the extent of any such measures. While expressing a desire to “do more,” she cited limitations in using tax adjustments to significantly boost disposable income.

The statement comes amidst concerns over slowing consumption demand and a lower-than-expected GDP growth of 5.4% in the second quarter of the fiscal year. Although gross personal income tax collections remain strong, growing by 20.2% year-on-year between April and October, analysts are worried about weak urban consumption, largely attributed to low real wage growth and corporate hiring and compensation practices. Rural consumption, however, shows slight improvement.

While the recent budget introduced income tax slab revisions and increased the standard deduction to ₹75,000, providing incremental relief across various income brackets, Sitharaman suggested further significant tax cuts are unlikely. The increased standard deduction already eliminates tax liability for salaries up to ₹775,000. The government believes the changes, particularly within the new tax regime (opted for by over 70% of taxpayers), have already provided substantial benefits.

The Finance Ministry attributes the consumption slowdown partly to the Reserve Bank of India’s monetary policy and macro-prudential measures.

**(Note: The unrelated information about DMRC’s New Year’s Eve safety measures at Rajiv Chowk Metro Station has been excluded from this news article as it is not relevant to the main topic.)**

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