New Delhi:
Aam Aadmi Party MP Raghav Chadha on Tuesday criticised the government for neglecting the middle class in its budget, which he claims benefits the wealthy dcuring a debate on the Union Budget in Parliament.
In his speech during the budget session, MP Raghav Chadha said, “The poor receive subsidies and schemes, the rich have their debts forgiven, but the middle class gets nothing. The government thinks the middle class has no dreams or aspirations. It is regarded as a hen that lays golden eggs, which are repeatedly squeezed.”
According to a release, Mr Chadha noted that reports indicate a decline in the spending capacity and consumption of the middle class. He stated, “There is no doubt that a taxable income of 12 lakh rupees results in zero tax. But this exemption is not that straightforward. If you earn even slightly above 12 lakh–for instance, 12.10 lakh rupees–you have to pay tax as per the designated slab.”
MP Raghav Chadha highlighted that out of India’s 1.4-billion population, only 6.68 per cent benefit from these tax exemptions. While 80 million Indians file income tax returns, 49 million report zero income and only 31 million actually pay taxes. This statistic, he argued, shows that the true tax burden falls on the middle class, as per the release.
He rejected the Finance Minister’s notion that such tax exemptions would boost consumption, adding, “Consumption will not increase until GST rates are reduced. GST is paid by everyone–not just by income taxpayers. When the common man pays tax on milk, vegetables, and medicines, his pocket grows lighter.”
MP Raghav Chadha then contrasted the government’s policies for different classes. “The government offers subsidies and schemes for the poor and forgives the debts of the rich–but the middle class gets nothing. There are no subsidies, no tax relief, nor does any scheme benefit them. The middle class is like a hen that lays golden eggs, yet the government does not keep it happy.”
He observed that the middle class is the largest taxpayer yet receives the least benefits. Salaries do not rise, savings remain minimal, and inflation continually increases. For instance, when food inflation exceeds 8%, salary increments are less than 3 per cent, the release stated
MP Chadha reiterated that although the middle class is the largest contributor in taxes, it reaps the smallest rewards. “The middle class is forced to pay tax on everything–books, stationery, medicines, sweets, clothes, housing; every hard-earned rupee is taxed. Their aspirations are crushed under the weight of these taxes. Income remains stagnant while expenses continuously rise. From children’s education to healthcare, the middle class is in a constant struggle.”
He further explained that many middle-class families become trapped in long-term debt. “Even after a lifetime of work, the middle class has to sink into 20-25 years of debt to buy a 2BHK house. Salaries come on the 7th, yet landlords demand rent on the 1st. Loans are taken for higher education, and in emergencies, even gold has to be mortgaged. This situation is only getting worse.”
He cited the slow growth of FMCG companies like Nestle India as an example, arguing that the middle class is no longer spending as it once did and said , “The demand for affordable goods has fallen, and people are now reluctant to spend.”
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
