Aam Aadmi Party (AAP) MP Raghav Chadha strongly criticized the Union Budget in Parliament, accusing the government of neglecting the middle class while favoring the wealthy.
Key Highlights of Chadha’s Speech:
1. Middle Class Overburdened, Yet Ignored
- Chadha argued that while the poor receive subsidies and the rich have their debts forgiven, the middle class is left with nothing.
- He likened the middle class to a “hen that lays golden eggs”—heavily taxed yet given no relief.
2. Taxation Burden on the Middle Class
- While incomes up to ₹12 lakh are tax-free, Chadha pointed out that earning just ₹12.10 lakh results in significant taxation.
- Only 6.68% of India’s population benefits from tax exemptions, while the majority bear the full tax burden.
- 31 million people pay direct taxes, yet GST burdens every Indian, raising living costs.
3. Impact on Consumption & Inflation
- High GST rates on essential goods (milk, medicines, vegetables) hurt disposable income.
- Inflation outpaces salary hikes, making it harder for families to save.
- FMCG companies like Nestlé India are struggling, indicating that middle-class spending is declining.
4. Housing, Debt & Financial Struggles
- Middle-class families take 20-25 years to repay home loans for a basic 2BHK house.
- Many struggle with rising rents, education loans, and healthcare costs, often resorting to mortgaging gold in emergencies.
Chadha’s Demands:
- Lower GST rates on essential items to boost spending.
- Tax relief and subsidies tailored for the middle class.
- A focus on salary growth and savings to improve financial security.
Conclusion
Chadha’s speech highlights the growing frustration of the middle class, calling for reforms that reduce their tax burden and boost economic stability. Will the government respond with policy changes? Only time will tell.