Were the upcoming Delhi Assembly Elections 2025 and Bihar Assembly Elections the main factors that shaped the Union Budget 2025?
Did Finance Minister Nirmala Sitharaman prepare the Union Budget in such a way as to give maximum concessions and benefits to the people of these two states?
Was she under the pressure of Arvind Kejriwal to give unexpected relief to the middle class so that the BJP could blunt the attack of the AAP and attract the middle class that constitutes about 45% electorate of Delhi?
Nirmala Sitharaman Gives Big Tax Relief To Middle Class
Finance Minister Nirmala Sitharaman has announced that no tax will be payable to the annual income of Rs 12 lakh. If the standard deduction is added to this, it will come to Rs 12,75,000. In means, that the taxpayer with an annual income of Rs 12,75,000 will not have to pay any tax.
It was Arvind Kejriwal who upped the ante before the Delhi Elections by demanding the union government ease the tax burden on the middle class.
Addressing an election rally days before Delhi goes to polls, the AAP convenor said that the income tax and the GST could be halved. He also demanded that the union government should enact laws to prevent loan waivers for billionaires.
AAP’s Arvind Kejriwal Ups Ante
Talking to news agency ANI, he said, “Today I have written a letter to the Prime Minister on an important issue. The BJP government at the Centre is looting money from the government treasury for a few billionaires… On the other hand, the middle class is struggling with inflation and unemployment.”
The former Chief Minister of Delhi added, “If the loan waivers of the rich are stopped, then the income tax and GST rates can be halved. GST on food items can be removed…”
It is evident by the announcements made by the finance minister that she tried to blunt the attack of the AAP leader.
Also Read: Union Budget 2025 Explained: How Will Income Tax Relief Supercharge Consumption, Economic Growth?
While the middle class constitutes 31% of the population as the national average, Delhi has 45%. It supported the anti-corruption movement spearheaded by Anna Hazare in 2012 and backed the AAP when the party was formed.
Middle-Class Backs AAP
According to reports prepared by the CSDS, while about 51% of the voters from this section supported the AAP in 2020, about 39% of them backed the BJP.
They switched over their allegiance and about 50% of the middle-class population voted for the Saffron party in Lok Sabha Elections 2024, 32% voted for the AAP.
Analysts believe, alarmed at this development, Arvind Kejriwal chalked out the strategy to woo this segment and came out with seven demands before the Union Budget 2025. These demands are directly related to the middle class.
Bihar Assembly Elections are likely to be held in November 2025, when the Nitish Kumar-led NDA will go to the hustings ad will be pitched against the opposition coalition of Mahgathbandhan
