Historic Tax Cuts Come at a Cost: Budget 2025 Reveals Critical Sector Trade-offs

The Union Budget 2025-26's massive ₹1 lakh crore tax relief for income taxpayers masks concerning trade-offs in crucial sectors. While the tax cuts aim to boost consumption and GDP growth above 6%, analysis reveals chronic underfunding in education, skill development, and healthcare sectors. Independent assessments from Nomura and HSBC indicate the budget's fiscal impulse may be neutral or negative for growth. The allocation for skill development remains at just 0.06% of the total budget, while healthcare spending stands at a mere 1.7% of government expenditure. This highlights the complex balance between tax relief and essential sector funding.

Source: The Indian Express,