Budget 2025 Prediction: Major Tax Reliefs, MSME Boost, and AI Concerns Take Center Stage

With just a week to go until Finance Minister Nirmala Sitharaman presents the Union Budget 2025, preparations are in full swing. According to sources, significant tax reliefs for middle-class earners and major pushes for infrastructure development and MSMEs are expected to be the key highlights of this year’s budget.

Tax Relief for Middle Class

Government insiders suggest that citizens earning between ₹10 lakh and ₹15 lakh annually are likely to receive substantial tax benefits. This move aims to enhance disposable income, ultimately boosting consumer spending and driving economic growth.

Infrastructure and MSME Focus

The budget is also expected to prioritize infrastructure and MSME sectors to stimulate employment and economic activity. Sources indicate that industries such as hospitality, manufacturing, and possibly real estate may receive targeted incentives and tax relief.
The government plans to allocate increased investments in key infrastructure projects, including railways, roads, urban development, and power. MSMEs, considered the backbone of the Indian economy, will continue to receive special attention with measures to support their growth and competitiveness.

Addressing AI-Driven Job Losses

Artificial intelligence (AI) will also feature prominently in Budget 2025 discussions. While AI is viewed as a transformative technology, its rapid adoption has raised concerns about job displacement. The government is likely to introduce measures to support employees impacted by AI automation while ensuring Indian businesses remain globally competitive in this sector.

Growth Story: Comparing UPA vs. Present Era

Government data highlights India’s economic growth trajectory in recent years. The average monthly per capita consumption expenditure has risen significantly—from ₹1,430 in rural areas in 2011-12 to ₹4,122 in 2023-24. Urban areas saw an even greater jump, from ₹2,630 to ₹6,996 over the same period. The 2025 budget aims to continue this growth momentum, ensuring inclusive development across sectors.

Halwa Ceremony and Controversy

As is tradition, Sitharaman will kickstart the final budget preparations with the ceremonial halwa distribution on Friday. The event marks the beginning of the lockdown period for finance ministry officials working on the budget. Last year, the ceremony faced criticism from opposition leader Rahul Gandhi, who pointed out the lack of representation from Scheduled Castes, Scheduled Tribes, and Other Backward Classes. Sitharaman responded by emphasizing the cultural and historical value of the ceremony.

With the budget being presented just ahead of the crucial Delhi polls, citizens and experts alike hope it will bring much-needed economic relief and opportunities across the board.