IT-BT Budget Roundtable 2025: Budget 2025 sparks political debate over tax reforms, economic growth ahead of Delhi polls 

The Union Budget 2025-26 has sparked a political debate, with leaders from the ruling BJP, Congress, and AAP offering contrasting views on its potential to shape India’s economic future. The national capital is preparing for the 2025 Delhi Legislative Assembly elections, scheduled for 5 February 2025, which will cover all 70 constituencies. 

Political figures gathered to discuss the budget’s implications during a session titled 'The Politics of Budget 2025-26' at the India Today-Business Today Budget Roundtable 2025, held on Tuesday. 

With India facing challenges such as stagnant economic growth, rising unemployment, and inflation, the budget is being seen as a crucial point of discussion ahead of the Delhi elections. 

Amit Malviya, BJP’s National In-Charge of Information & Technology, defended the government’s fiscal measures, particularly tax reforms aimed at benefiting the middle class. “This budget introduces tax cuts that lower the effective tax rate from 97% to 21%. It provides relief not only for the middle class but for young professionals in the country,” Malviya stated. 

He also highlighted the government’s increase in infrastructure allocations, suggesting that these measures could stimulate demand and production. Malviya’s favourable view of the budget, however, was challenged by Congress leader Praveen Chakravarthy. Chakravarthy, Chairman of the Professional Wing and Data Analytics for Congress, criticised the government’s focus on tax rebates while increasing indirect taxes. “While the government claims to be helping the middle class, it has raised indirect taxes on essentials like food items and fuel, which impact the common person,” Chakravarthy argued. 

He added that despite the budget’s promises, there was no clear strategy to boost private sector investments, which have continued to stagnate. Jasmin Shah, Senior Member of AAP and Former Vice Chairperson of the Dialogue & Development Commission of Delhi, expressed concern about the budget’s focus. “The budget favours corporate interests and does not adequately address the needs of the public,” Shah said, highlighting the lack of attention to sectors such as healthcare and education. Shah also mentioned the issue of youth unemployment, noting that while the government has offered tax relief, it has not introduced measures to directly create jobs. “What we need is a government that invests in people, not just in big business,” Shah added. 

The debate also touched on the government’s internship scheme, which was introduced last year with promises of creating jobs for young Indians. Chakravarthy noted that there was no mention of the scheme in this year’s budget. “The promise of internships and jobs for youth has not been addressed. The government continues to overlook the fact that 65% of India’s population is under 35, and young people are facing unemployment,” he said. Malviya, in response, reiterated the long-term goals of the BJP’s budget, which he argued would support the economy by investing in infrastructure and increasing disposable income. “The increased infrastructure funding will create jobs, and the tax cuts will provide people, especially young professionals, with more financial flexibility,” he said. 

The discussion also turned to the political implications of the budget in the lead-up to the 2025 Delhi Assembly elections. Malviya viewed the budget as a way to strengthen the BJP’s appeal to the middle class, while Chakravarthy and Shah accused the BJP of using the budget to gain political advantage. “This budget is designed to please voters rather than address the key issues affecting the economy,” Chakravarthy said. 

The results of the 2025 Delhi Legislative Assembly elections will be declared on 8 February 2025.