Raghav Chadha Advocates for Inflation-Linked Salaries in Budget 2026 Analysis
Aam Aadmi Party MP Raghav Chadha has issued a comprehensive assessment of Finance Minister Nirmala Sitharaman's Union Budget for 2026, categorizing it into the good, bad, and suggestions for the future. In his critique, Chadha emphasized that India should adopt a policy of linking salaries to inflation, a practice common in all major economies worldwide.
Middle Class Concerns and Stagnant Salaries
Chadha pointed out that the middle class received no significant relief in the recent budget announcement. He highlighted that salaries have remained stagnant for years, exacerbating financial pressures on households. If the government is unable to provide direct tax relief, Chadha argued, it must instead incentivize savings and investments to support economic stability.
Key Recommendations for Economic Reform
In his detailed feedback, Chadha proposed several measures to address these issues:
- Eliminate Long-Term Capital Gains Tax for Retail Investors: Chadha suggested doing away with LTCG to encourage more participation in financial markets.
- Implement Inflation-Linked Salary Adjustments: He urged the government to tie salary increases to inflation rates, ensuring that earnings keep pace with rising costs of living.
- Boost Savings and Investment Incentives: To compensate for the lack of tax breaks, Chadha recommended enhanced schemes to promote savings and secure investments for the middle class.
Chadha's analysis underscores a growing call for economic policies that mirror global standards, particularly in safeguarding the purchasing power of citizens. His remarks come amid ongoing debates about budget fairness and the need for structural reforms to support India's evolving economy.
