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Budget 2025: Nirmala Sitharaman Gets Surprise Support on Income Tax From Raghuram Rajan, Check What He Said

Budget 2025 sparks debate as Raghuram Rajan emphasizes human capital investment over income tax cuts. Will Nirmala Sitharaman’s budget deliver relief?

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Budget 2025

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As Budget 2025 approaches its final phase, Finance Minister Nirmala Sitharaman recently participated in the traditional Halwa Ceremony at the North Block. With the budget presentation scheduled for February 1, 2025, discussions around potential changes in income tax slabs and standard deductions are gaining momentum. However, former RBI Governor Raghuram Rajan has shared an alternate perspective, questioning whether tax cuts are the solution or not.

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Raghuram Rajan on Budget 2025

Speaking at the World Economic Forum in Davos, Raghuram Rajan expressed his views on Budget 2025. He stated, “The tax rates are not so high that I am worried about them. Our fiscal situation, while kept on track by the government, is not very strong. Instead of tax cuts, we should prioritise effective spending to improve human capital—enhancing child health, reducing malnutrition and improving the quality of primary schools. Investing in these areas can help India thrive in the economy of the future.”

This statement by Raghuram Rajan is being seen as support for the central government.

Will Income Tax Relief Feature in Budget 2025?

Global financial company Nomura has also weighed in, forecasting potential changes in income tax slabs in Budget 2025. While there is speculation about increases in standard deduction limits, no concrete details have been confirmed. For now, taxpayers await Finance Minister Nirmala Sitharaman’s announcements to see if there will be any income tax relief for the middle class.

Budget 2025 is shaping up to be a crucial moment for India’s economic trajectory. While experts like Raghuram Rajan stress human capital investment over tax cuts, other reports hint at possible tax relief measures. All eyes will be on Nirmala Sitharaman’s presentation to determine the path forward for income tax and fiscal policies.

income tax news Raghuram Rajan Budget
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