High Income Tax Doesn’t Hurt Middle Class, Says Finance Minister in RS Debate
Sitharaman defends middle class and welfare spending amid Budget debate.
Finance Minister Nirmala Sitharaman on Thursday clarified in the Rajya Sabha that high personal income tax collection does not indicate suppression of the middle class in India. Speaking during the debate on the Union Budget 2026-27, she highlighted that evidence points instead to an expanding middle class.
Sitharaman countered opposition claims that welfare spending was being curtailed, stressing that funds to states under various social schemes have neither been denied nor stopped. She urged members to encourage their state governments to participate in Budget-announced programs for maximum impact.
Comparing government spending patterns, the minister noted that only Rs 37,000 crore remained unspent in 14 social sector schemes over the last decade, compared with Rs 94,000 crore during the UPA government. She also dismissed criticisms of announcing schemes without allocations, citing similar practices by past governments.
Also Read: India-US Trade Deal Updates Signal Strategic Gains Amid Shifts in Russian Oil Imports
Addressing concerns about rising debt, Sitharaman emphasized that India does not borrow excessively and that the Centre’s funds represent the hard-earned money of citizens, to be managed responsibly. She stressed the government’s commitment to fiscal prudence while implementing welfare and development programs.
Highlighting the success of direct benefit transfers, Sitharaman said over Rs 48 lakh crore has been credited directly into beneficiaries’ accounts, while plugging leakages saved Rs 4.31 lakh crore. She said the Budget remains mindful of past economic challenges, including periods of double-digit inflation.
In conclusion, the finance minister said that the Union Budget reflects the government’s resolve to build a resilient, self-reliant India. She urged cooperation from states and highlighted that the policies aim to balance fiscal discipline with inclusive growth, benefitting citizens across income groups.
Also Read: Hindalco Q3 Net Profit Crashes 57% on One-Time Loss
