Budget 2025: Mere Tinkering With Direct Tax Reform Won’t Address India’s Structural Economic Woes

Finance Minister Nirmala Sitharaman began her budget speech with the importance of higher agricultural growth, productivity and achieving rural prosperity. While the middle classes, especially the richer deciles, got substantial relief through income tax exemptions and change of slab rates, the farmers got some good promises which may help them in earning higher incomes.
Ironically, there was no reference to doubling of farmers income which has been the dominant theme in discussions on agriculture ever since the same was announced in an election rally in 2015. The data presently available does not show that the incomes have doubled. In fact, the farmers of several major crops, which include pulses and oilseeds also, have not even been able to realise the MSP this year for their produce. Soybean, tur and chana are examples.
It would be unrealistic to think that the problems of the agriculture sector can be addressed in a Union budget. There are a lot of other important sectors of economy whose challenges and opportunities must be addressed while also maintaining fiscal discipline.
The Founding editor of the wire, M.K. Venu discusses the budget 2025 with Deepanshu Mohan, Professor and Dean at OP Jindal Global Univerisity.
Join The Wire's KZbin Membership and get exclusive content, member-only emojis, live interaction with The Wire's founders, editors and reporters and much more. Memberships to The Wire Crew start at Rs 89/month. / @thewirenews

[@aeratj5741]

Modi ji has squandered a historic mandate

[@rajnishkrmanga]

Thanks, Venu Sir.

[@biswanathbhandari7028]

The income tax relief for a tiny section of the salaried class is a drop of water in a vast desert of mass destitution. The union budget over the decade has made no concrete efforts to address the gaping wounds of unemployment and ever increalsing pressures of inflation. This deceptive tax relief in the context of rapid devaluation of ripee is a political camouflalge to conceal the skeleton of massive economic mismanagement resulting in a state of semi starvation for the masses. The heart rending agonies of our unemployed youth fall on deaf ears of this dumb regime of repression and suppression.

[@lmbt456]

They are managing News and social media. There shouldn't be a new or old regime ,there must be a SINGLE regime,and reasonal tax to each slab.

[@ageless1003]

It's a PR government since 2014. They always managed news and social media.

[@S_59587]

HHEARD HIM ON TV YESTERDAY. HE WAS THE ONLY ONE TO TEAR IT APART. OTHERS WERE GODIMODI AS USUAL. WELL SAID AGAIN.

[@ranadas4934]

The BJP appears more focused on consolidating its own power rather than addressing India's long-term economic and structural challenges. Instead of fostering trust with businesses and strengthening the federal structure, the government’s increasing centralization of authority raises concerns about the erosion of state autonomy. This approach not only weakens cooperative federalism but also prioritizes political dominance over the nation's broader economic and social well-being.

[@sitanshurai892]

True. Agreed on the fact and all consequences vis-a-vis to consolidation of power. But, you buried the lead my friend. A centralised power structure will always produce less growth than a centralised system in a large country. Any distributed systems engineer knows this fact. Given the macro environment, and our poor global competitiveness, we cannot afford to sacrifice any potential of growth.

[@prince17618]

BJP is only party who could bring either Economic growth or Economic crisis in India by any means, you couldnt expact such daring from Congress or Communist they are in their comfort zone, and they could only appease you, BJP is right wing party and their main agenda is nationalism infrastructure,economic growth, no matter whether they will pass or Fail, but their agenda is clear, and one should voted for such risk taking party rather than, cunning communist and lazy congress.

[@ageless1003]

Why are you so surprised now ?...that was the plan since 2014 which was experimented in Gujarat.

[@jhinuk342]

Thanx for such discussion … 🙏🙏

[@anilkhabya690]

If central govt reduce excise on petrol and diesel, State Govt would immediately increase VAT and no relief to consumers. This has been done in past

[@mniranjan9509]

Modi in "DeepSleep2047"... 2025-26 budget ₹ 50.75 lakh crores out of which ₹12.75 lakh crores to pay back as interest payments on India's debt so 26% unproductive payment..... India's GDP is around ₹350 lakh crores @nominal prices (minus 40% if it is Real factoring inflation ) which has 84% debt component..... Modi created record of borrowing debts ₹205 lakh crores ..... Our Economy is with almost debtridden GDP.....there's massive Fiscal deficit of ₹14.70 lakh crores, so more burden on people... This 2025-26 budget will only results in inflation which burdens common man, rather Total removal of GST on food items would have helped.... At this rate India cannot become atleast 5 trillion economy in next 10 years.... .. 😮 ....

[@gc95915]

I agree with the conclusions of this discussion. The problem is both structural, political and ideological. Even in 2014 and after, I always argued against voting for the bjp-rss. At the most fundamental level, the rss is not an organisation where there is free thinking. It is a bubble of its own, stuck in the past, with historical grievances, politics of religion, the need to maintain caste supremacy and a desire to recreate imaginary social order of a distant era. It is also isolationist by nature. It has no international linkages with think tanks around the world. Inevitably, it doesn’t have the knowledge of how the world works or the experience to run the country. For most part, its members and karyakartas are high school graduates or dropouts. Even the few “intellectuals and professionals” it has are very conformist. Its leadership is insecure and hence the urge to control the people of the country. All of this does not bode well for the future of the country. What the people need is freedom. And, freedom from fear of the Delhi government. States need autonomy to manage their affairs and create self sufficient state economies. Power and decision making need to be decentralised. There has to be peace and social harmony. Don’t see any of that down the road. I believe as of now, the system is broken. There’s no U turn.

[@eSQKta9ayKH9zs7R4H]

excellent analytical discussion on various facets of the economy, than the sycophants touting "the going is great".

[@rnugra3292]

This budget did not touch the miserable life of fifty percent of our population - the farmers who have been agitating for : Agriculture prices, Agriculture marketing, Agriculture trade, Agriculture inputs' cost. There is no provision for generating livelihood opportunities also, other than making more money in the hands of the tax payers. In other words spending power remains in the hands of a limited existing number of the population, instead of increasing this number by adding it with additional numbers of new earners. There has to be a sustainable, on going and incentivised program for cropping program for food grains to balance the requirement and availability for each type, every season. This would avoid huge surplus of some, lowering the market prices below the cost of production for some and huge spikes for the other in short supply for a couple of seasons. The effort should be to lift between 5 to 10% of the famers to middle income group, which means about 2 to 3 crore of them, and see the fillip it gives to the economic growth it will produce !!

[@namos369]

If you are interviewing someone kindly stop interrupting the interviewee and adding your views before he can finish

[@DigitUnni]

🤣🤣🤣

[@ageless1003]

I don't even think you watched rhe whole interview😅

[@DigitUnni]

@@ageless1003 True. I just watched for 2 minutes. All of us know The Wire just blame Modi

[@drshokatalisaiyed4733]

As on 31st March 2024 Indian debt is Rs 1.57 lacs per person. is it good for the people???

[@nivedhfusion]

Usa mai 9lakh per person Uk mai 5lakh per person China mai 3lakh per person India mai 1.25 per person

[@ABHYUDAYSARKAR]

Bjp bot's whataboutism. 😂​@@nivedhfusion

[@sjgghosh7677]

This debt per person doesn't matter that much.. what matters is debt to gdp ratio. 1 thing that's hidden is how much asset govt is holding. In majority of developed nations govt doesn't own lots of businesses, but for India our govt has those hidden assets , so a 70% debt to gdp in India is not same as 70% debt to gdp from western countries as Indian govt can easily just sell half of them one day and bring debt to gdp to a much much lower number.

[@shantanubagchi3468]

Budget has already been politically driven. Tax exemption this time is just a belated reward to middle class to get electoral rewards which has been pricking their conscience for many years. Real problems have been ignored as usual. Budget is a non event. Just tinkers some figures here & there year after year.

[@sivasankarmn3526]

The PM and FM should understand such aspects thoroughly , before preparing the budget. Mere tinkering may not help us to grow and become a developed country by 2047, as felt by various experts.

[@pardeeptandon]

Please do not call a person earning 12 Lakhs a Middle- Class. As he earns 5 times the GDP per capita of an Indian. Anybody who earns 5 times the nation's GDP in the world is called RICHI RICH and not middle class.

[@counterpoint9260]

that fine..from 0 lakh to 12 lakh, nobody needs to pay taxes right

[@pardeeptandon]

@@counterpoint9260: In All G-20 countries, tax starts before a person starts earning the GDP per capita of the nation. If India does the same, the Tax should start at 2.5 lakhs. SUIT BOOT KEE SARKAR KEE JAI HOO!!!!!

[@counterpoint9260]

@ if they are suit boot ki sarkaar then they should be taxing even a 2lkah salary person more! you are saying the opposite, wrong argument..they have bene corporate friendly before, they were criticized and now they are trying to course correct, maybe for elections, but still it is welcome

[@gopalkrishnan7324]

Main stakeholders people are not considered in the drafting budget. Bureaucrats think they are the supreme authority and decide what is good for the public without consulting them. Arrogant attitude

[@vinaygupta5831]

Its hardly any significant gain for taxpayers. Just pulling wool over the eyes of the Taxpayer's ..benifits ..More smoke than fire . . hiping only on 'Rs.12lakh ' income is now tax free . ; how to make majority to earn Rs. 12 lakh per year , the roadmap is missing, only hype ..

[@teluram3925]

The devoted team of TheWire,the team captain VenuSir thanks for analyse the budget gimmick, the budget is most dismal, a cruel joke to the all marginalized section of the country.

[@drshokatalisaiyed4733]

Is the Labour intensive technology good for the tax rebate in the Indian economy for the solution of unemployment problems???

[@vijaydeshpande4700]

The tax foregone (about 1 lakh crore) is about 0.5% of private final consumption expenditure for 2024-25 (AE). As you say at the aggregate national level this may not have much of a multiplier effect. But at the individual level it is still a large sum - almost half of what people invest yearly in SIP.

[@kartheekvijay2250]

But rates increased massively

[@skghulamrasul3397]

Save democracy

[@mohmadyusufsyed6725]

Stock market is not responded positively this budget.

[@BaraBabu-c4k]

For andhabhkat don't need budget or structural changes but joomla. They are habituated and their health will suffer if you discuss serious economic issue

[@sureshharinathbabu9717]

Mr venu you have good opportunity now invest in making of nagpur half trousers 👖 which is in great demand for British janta party

[@DigitUnni]

Madarsa gives good information. Now it is full trousers. Go to good school

[@panikst]

IND gdp is subset of TN gdp 😮

[@kukaki5845]

Budget is a joke. An eyewash only. Little money without reduction in taxation control of inflation and reduction of interest rates means nothing.

[@gurdeepsingh1616]

Jumla ji

[@historybuff-p6x]

structural problems must br addressed in reform bills and not budgets which is an accounting exercise after resisting both land and farm reforms of thr bjp dont expect them to spend their political capital on real reforms i was really hoping for the farm reforms to be adopted and increase agricultural productivity there by improving rural upward mobility but the socialists won that day. seems like we are stuck with their ideology no matter who is in power

[@sjgghosh7677]

Sorry but anyone is economist in this panel ? They are discussing without any numbers or any points here ... Just ranting economy is down with usual selected word again & again ... Inflation, past gdp, tax , gst

[@srinivasrao369]

All news channels in English godi media jumping on to the 12 lac tax limit without any research India Today TV Adani NDTV tv Republic now CNN Ibn

[@AshokPannala-kc4cn]

BJP doesn't have efficient toolkit to address economic Situation. They don't respect professional advice. its highly centralised

[@panikst]

10 trillion dollars gdp kya hua

[@ragh91937]

Communist discussing how to put capitalist economy in order😂😊

[@Amit.Pustake]

🌟🌟 REFORMS 🌟 REFORMS 🌟 REFORMS 🌟🌟 🔥🔥 LEADERSHIP, DEMOCRACY & GOVERNANCE 🔥🔥 💥💥 LEADERSHIP REFORMS 💥💥- ** Is MODI a "Well Qualified" Leader for India? ** 1. Modi runs country like a ”one man show.." Why Only Modi and Amit Shah occupies marketing space in news media ? 2. India has 1.4 billion population.. so don't we have enough leaders who knows good governance and politics? 3. People voted him for "NATIONAL role as a PRIME MINISTER" so instead of solving National problems using his LOGIC..why does he go for poll campaigns for state and muncipal elections..? 4. Does Modi understand his job description ? 5. If he is only interested in promoting his party in all elections then he deserve to be a PARTY PRESIDENT and not prime minister.. 6. He promotes "One Nation One Election".. then why doesn't he promote "ONE NATION-ONE TEAM-one goal - one achievement.." ? 💥💥 DEMOCRACY REFORMS 💥💥 **POLLS AND ELECTIONS -** 1. Unqualified leaders are results of unqualified voters.. 2. Voters are getting easily fooled by shrewd politicians who use shrewd strategies.. 3. Elections are used to gain Power and fulfill selfish interest and not for people's interest... 4. So we need to upgrade and re design the election process too.. 5. Elections should be held every year.. so in case of false promises.. voters should get RIGHT to punish cunning politicians.. ** SO DO WE NEED DEMOCRACY ?** 1. Do we really need politics, Power games, drama.? 2. Why democracy limited to "voting" only? 3. Are "voters" and "Elected Leaders" well qualified to make good democratic decisions ? 4. Instead of annual budget why government doesn't talk about annual results and achievements..? 5. Largest stakeholder- people - biggest losers.. 6. smallest stake holders - elected leaders - biggest beneficiaries.. 💥💥 GOVERNANCE REFORMS 💥💥 ** TO SUCCEED WE NEED -** 1. Right people 2. Right approach 3. Right plans SIMPLE LOGIC - ** HIRE, FIRE & RESULTS NECESSARY ** 1. To make India - *DEVELOPED country- HIRE developers *PROSPEROUS country- HIRE finance experts. *TECH GIANT - HIRE Technologist. *TRULY DEMOCRATIC - FIRE corrupt, uneducated and selfish politicians.. 5. Instead of providing free food..Provide free Solar panels, E - Bicycles, Laptops to all.. (Energy+ Work+ knowledge) 6. Adopt digital education, digital economy, e-governance, new technologies. 💥💥 MANIFESTO REFORMS 💥💥 Non negotiable and uncompromisable - President, supreme court and election commission should make it mandatory for all parties to include following points for all elections.. 1. Per capita income 2. Quality of life 3. Standard of living 4. Human development index 💥💥 CHANGE - 💥💥 Time has come to UPGRADE and REDESIGN 75 years old Democracy Model.. 💥💥 SUCCESS Mantra -💥💥 Indian constitution says.. सत्यमेव जयते.. Bhagwat Gita says.. धर्म की जीत.. supreme court says.. न्याय की जीत.. 💥💥 AUTHOR -💥💥 Amit Pustake Who am I? (father of the nation) 1st battle(1947) - Independent India Next battle(2025) - Prosperous India.... POWER GAME Begins... 🚩🚩🚩🚩

[@AbdullaSiddique-xz3py]

300 rs kamai me hota kiya

[@DavidHurst-g5h]

Who is interviewing whom

[@arunkumarm18]

You guys are earning 12lpa?😅🤡

[@vg77574]

You clowns will always be critical of what the centre does, even if it is good.

[@deccanheart]

It depends on your definition of ‘Good’. Would you be happy with a Slow Growth Economy that would potentially miss out on our Demographic Dividend, or try to learn from countries like China who have succeeded in building up on their strengths.

[@counterpoint9260]

Venu, you need to be balanced and bring in other pro-BJP perspectives too..dont be one sided, like a reverse Godi media..interview Arvind Panagriya, Surjit Bhallal, Krishnamurthy subramaniam, Ananth Nageswaran etc

[@deccanheart]

You can find those POV’s all over the media. Not every discussion needs to have the BJP’s viewpoints. krishnamurthy subramanian projects $55T by 2045. You just need to accept one of these contrary views

[@counterpoint9260]

@@deccanheart no need to accept anything..let them debate it out..most economists cherry pick data depending which side they are on and hide the full truth..only a balanced panel debate will lend more clarity

[@jitenderthevloger.567]

kzbin.info1fvT_GVZdhE?si=DPo6Cngzb6pir_8G