Daijiworld Media Network - New Delhi
New Delhi, Jun 5: Over the past 11 years, the Indian government has systematically rolled out a wave of reforms aimed at transforming the lives of the middle class — from meaningful tax relief to enhanced social security measures, according to an official statement released Thursday.
Gone are the days of cumbersome paperwork and endless red tape. Whether it’s filing taxes, buying a house, commuting, or affording essential medicines, the government claims that daily life has become more manageable and efficient for millions of families.
“This is not a collection of random tweaks,” the statement emphasized. “These reforms respond directly to the real concerns of honest, hardworking citizens. The government recognizes the middle class as the backbone of India’s economic progress.”
One of the standout measures is the overhaul of income tax policies. The government has steadily raised exemption limits, introduced standard deductions, and launched a simplified tax regime in 2020 — moves that have put more money directly into the pockets of taxpayers.
The latest step, announced in the Union Budget 2025–26, is especially significant: individuals earning up to Rs 12 lakh annually will now pay no income tax (except on special incomes like capital gains). Thanks to the standard deduction of Rs 75,000, even those earning up to Rs 12.75 lakh will also escape the tax net.
“This reform alone is expected to benefit crores of salaried citizens,” the statement noted. “It underscores the government’s trust in the middle class and shows respect for their contribution to the nation.”
Additionally, taxpayers now have access to pre-filled Income Tax Returns, which streamline compliance by including details such as salary, bank interest, and dividends. This has made the filing process faster and easier than ever before.
The success of these initiatives is evident in the numbers: the number of individual ITR filings rose from 3.91 crore in FY 2013–14 to 9.19 crore in FY 2024–25, reflecting greater confidence and ease in tax compliance.
Beyond taxes, inflation had long been a major worry. From 2004–05 to 2013–14, prices rose at an annual average of 8.2%, squeezing household budgets and making financial planning tough. However, between 2015–16 and 2024–25, inflation averaged just 5%, providing much-needed relief to families and creating a more stable cost of living.
“This stability was no accident,” the statement said. “It was the result of sound policy, strong coordination with the Reserve Bank of India, and better supply chain management.”
The statement also highlighted a landmark pension reform: the Unified Pension Scheme (UPS) approved on August 24, 2024. Under this scheme, government employees who have served at least 25 years are now entitled to a pension worth 50% of the average basic pay drawn during their final 12 months of service. Those with shorter service records will receive a proportionate pension, provided they have completed a minimum of 10 years of service.
Altogether, these measures have given India’s middle class a sense of security and optimism, the statement concluded, laying the foundation for sustained national growth in the years to come.