Pre-budget survey: No improvement in quality of life soon, feel Indians

With rupee touching its lowest-ever mark against dollar this month and the economy projected to be on a slower trajectory, as India heads into the Budget 2025-26, more than a third of Indians surveyed by the C-Voter thought that their quality of life will not improve in the coming future, as per reports.

Notably, India’s Union Finance Minister Nirmala Sitharaman will present Union Budget 2025-26 on Saturday.

Over 37% of the 5,000+ people surveyed said that they expect their quality of life to deteriorate in the coming year, as per reports.

The reports also noted that two-third of responders thought that inflation has been an issue during Narendra Modi government, which came into power in 2014.

Slow economic growth

Notably, India’s Gross Domestic Product (GDP) is projected to grow at 6.4% in the financial year 2024-25, down from 8.2% growth recorded in 2023-24, according to the first advance estimates released by the Ministry of Statistics. 

The projection is lower than the recent RBI’s estimate of 6.6% for the current fiscal year.

The GDP rate of 6.4% is the lowest since 2020-21. In 2023-24, it was 8.2%, 7% in 2022-23, and 9.7% in 2021-22.

Rupee falls lowest

On the other hand, the rupee reached an all-time low of 86.41 on January 13, 2025. A positive rise in dollar index and US Treasury yields has rupee plummeting in recent times, this time a record-low.

The increasing weakness of the rupee can have adverse effects on the country’s economy. With rising crude prices and the rupee weakening against the dollar, petrol and diesel prices in India, a country that is 80% dependent on imports, may skyrocket again.

The burden on students going abroad to study may also increase. Moreover, auto parts and semiconductor chips will also become expensive due to imports, which will increase the prices of electronics and automobiles.

Country seeks tax relief

As the country waits with anticipation on the budget eve, another pre-budget survey revealed that individual taxpayers want relief on the personal tax front to increase their disposable income in Budget 2025-26. 

A majority of respondents, 57%, want lower tax rates, while 25% advocate for higher exemption limits, according to the survey carried out by consulting and services firm Grant Thornton Bharat.

To further enhance the appeal of the new tax regime, about 46% of respondents advocate for lowering tax rates, while 26% believe exemption limits can be increased, the survey states.

In terms of domestic tax compliance, 56% of respondents seek an increase in the income threshold for tax filing to reduce the tax return filing burden on small taxpayers. About 32% of the respondents desire a reduction in the additional tax applicable in case of updated tax returns, and 12% would like an extension in the timeline provided for filing the revised Income Tax Returns (ITRs).

(with inputs from syndicated feed)