The Union Budget 2025 has met expectations by focusing on boosting consumption and maintaining fiscal prudence. Anand K. Rathi, Co-Founder of MIRA Money, praised the budget for aligning closely with anticipated goals, emphasizing its positive impact on consumer confidence and the debt market.
“The budget was expected to boost consumption by providing more money to the people. From our perspective, consumerism was the anticipated theme, and the budget has successfully achieved that goal. I would say this budget is spot on in terms of expectations versus actual results,” Rathi stated. The government’s income tax reforms, including raising the exemption limit to ₹12.75 lakh for salaried individuals (with standard deductions), are expected to put more disposable income in the hands of consumers, stimulating demand across sectors.
Rathi pointed out that while major reforms or significant capital expenditures were not anticipated, a business-as-usual approach was expected—and delivered. “We did anticipate a business-as-usual approach similar to last year, and that’s exactly what we got,” he noted. The budget’s fiscal deficit target of 4.4% of GDP—slightly better than the expected 4.5%—is seen as a positive sign for the debt market, indicating lower debt borrowing and fostering confidence in the country’s fiscal health. “This is a positive sign for the debt market, indicating lower debt borrowing and fostering optimism about its future,” Rathi added.
In the context of global economic tensions and the need to balance internal and external factors, Rathi praised the budget’s pragmatic approach. “Given the current global tensions and the need to focus on both internal and external factors, this budget has made a positive impact. It has effectively addressed the immediate needs rather than just discussing long-term requirements, instilling a sense of security about the government’s economic decisions,” he remarked.
Tax reforms were a significant highlight of the budget. Rathi provided a detailed breakdown of the new tax thresholds and potential savings for individuals:
- For income below ₹12.75 lakh (with the standard deduction), individuals will pay zero tax.
- For income up to ₹18 lakh, individuals can save ₹70,000 in taxes.
- For income up to ₹24 lakh, tax savings can reach up to ₹1.1 lakh.
- Even those earning just below ₹12.75 lakh will benefit from ₹80,000 in tax savings.
These tax changes are expected to boost consumer spending and drive economic growth in sectors such as FMCG, retail, and services.
Rathi concluded by stating, “Overall, it is a robust budget across all aspects.” The Union Budget 2025’s balanced approach to consumption, fiscal discipline, and market stability has positioned India for steady growth, while providing immediate benefits to both individuals and the broader economy.
