Opinion on the Union Budget 2025 by CA G.Karthikeyan, President, The Start up Academy

Senthilkumar Rajappan is the Founder Blogger of YourCoimbatore.com, He is…
The Union Budget 2025 presents a balanced and forward-looking approach, addressing key economic challenges while fostering growth across various sectors. The government’s focus on fiscal discipline is commendable, as reflected in the contained fiscal deficit of 4.8% of GDP. Coupled with a projected growth rate between 6.3% and 6.8%, this budget reflects a pragmatic approach to economic stability and expansion. The middle class is cheered as there is no income tax upto RS.12 lakhs as the same is expected to be a disposable income which will in turn increase consumption to boost the economy. Per Asst year 23-24, about 87% of the tax payers are earning less than rs 10 lakhs per annum.
A significant emphasis has been placed on the welfare of the poor, youth, farmers, and women, aligning with the broader goal of inclusive development. The targeted initiatives for farmers, including credit cards, high-yield seed programs, and increased cotton productivity, are well thought out. Addressing underemployment in agriculture through policies benefiting 1.7 crore farmers is a much-needed step towards rural prosperity and food security.
The recognition of MSMEs as the second engine of growth is a progressive move, given their contribution of 36% to India’s manufacturing sector. The budget’s employment generation and skilling incentives, particularly in non-leather footwear and toy exports, aim to create 22 lakh jobs, generate ₹4 lakh crore in revenue, and boost exports by ₹1.1 lakh crore. Enhanced access to term loans and revised investment and turnover limits for MSMEs will further strengthen this vital sector.
Women and marginalized communities stand to benefit from the new entrepreneurial schemes, which will empower 5 lakh women, SC, and ST entrepreneurs. Continued investment in infrastructure through PPP models and asset monetization ensures sustainable economic development and job creation.
Tax rationalization measures are among the most encouraging aspects of the budget. The removal of basic customs duty on life-saving drugs is a crucial decision for public health. The proposed tax relief, exempting income up to ₹12 lakh from taxation, is a substantial relief for the middle class, fostering increased savings, investments, and consumption. The revised slab rates, relief on self-occupied properties, and decriminalization of various tax-related laws will enhance compliance and ease the tax burden.
Revisions in TDS provisions, particularly for senior citizens and rent payments, along with simplification measures for trusts and corporate taxation, will reduce compliance difficulties. The introduction of a New Tax Bill aimed at streamlining tax laws is a welcome move that should ensure transparency and ease of doing business.
Overall, the Union Budget 2025 strikes a positive balance between fiscal prudence and economic stimulus. The targeted support for agriculture, MSMEs, women entrepreneurs, and infrastructure development, alongside rationalized tax policies, makes it a well-rounded budget with the potential to drive robust and inclusive growth. While effective implementation remains key, this budget lays a strong foundation for a resilient and prosperous economy.
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Senthilkumar Rajappan is the Founder Blogger of YourCoimbatore.com, He is a digital marketing strategist , a start up mentor and loves speaking on entrepreneurship. Loves blogging on auto, tech and books. Also has a personal website www.rsenthilkumar.com