Middle Class Is Angry, Finance Minister Must Listen. Mohandas Pai | Budget 2024

In an exclusive interview with Mint, Mohandas Pai, chairman of Aarin Capital, expressed concerns about the plight of India’s middle class ahead of the 2024 Union Budget. He highlighted that the middle class, which pays the majority of taxes, is increasingly unhappy due to high living costs, inflation, and inadequate tax deductions. Pai criticized the current tax slab policy, advocating for a reduction in taxes instead of multiple new slabs. He pointed out that while income tax collections have risen by 20-22%, the benefits are not reaching the broader middle class, which includes around 6-7 crore salaried individuals and pensioners, compared to only one crore people with housing loans.

Pai also emphasized the need for infrastructure development and improving the quality of life in cities, which remains poor despite some improvements. He stressed that the government should focus on increasing the purchasing power of the bottom 50% of the population to stimulate economic growth.

A LocalCircles survey of 21,000 respondents from 327 districts revealed that 48% of households expect a reduction in income and savings by the end of the financial year 2024-2025. This is attributed to the rising costs of living outpacing income growth, making it difficult for families to sustain their daily lives.

Pai’s comments come as the Modi 3.0 government prepares to present its first Union Budget of 2024. He urged the government to address the grievances of the middle class by providing tax relief and improving infrastructure. Pai’s advocacy for the middle class reflects a broader sentiment of dissatisfaction among taxpayers who feel burdened by high taxes and rising living costs without corresponding benefits.