Finance Minister Sitharaman Defends Tax Collection as Sign of Middle-Class Prosperity
In a robust defense of the government's fiscal policies, Finance Minister Nirmala Sitharaman asserted that the high collection of personal income tax is a clear indicator of the expansion of the middle class in India, rather than any form of suppression. Her remarks came during a detailed reply to the debate on the Union Budget for the fiscal year 2026-27 in the Rajya Sabha, where she addressed concerns about economic pressures on citizens.
No Evidence of Middle-Class Suppression, Says Sitharaman
Sitharaman emphasized that there is no empirical evidence to suggest that the middle class is being suppressed under the current tax regime. Instead, she pointed to data showing a significant rise in the number of taxpayers and overall tax revenue, which she linked to broader economic growth and improved livelihoods. "The figures speak for themselves," she stated, highlighting how increased tax compliance and higher incomes reflect a strengthening middle segment of society.
Budget 2026-27 Aims to Foster Inclusive Growth
During her speech, the Finance Minister outlined key aspects of the Union Budget 2026-27, which is designed to support sustainable development and enhance the quality of life for all citizens. She reiterated the government's commitment to policies that promote job creation, skill development, and infrastructure improvements, all of which contribute to middle-class advancement. This budget session has been closely watched for its implications on personal finance and economic stability.
The debate in Rajya Sabha saw discussions on various economic indicators, with Sitharaman's response aiming to clarify misconceptions about tax burdens. She argued that the growth in personal income tax collections is a positive sign, indicating more people are earning above the taxable threshold and participating actively in the formal economy.
Middle-Class Expansion as a National Priority
Sitharaman concluded by stressing that the expansion of the middle class remains a top priority for the government, with ongoing initiatives to reduce inequality and boost disposable incomes. Her comments are expected to influence public perception and policy discussions in the coming months, as India navigates global economic challenges.
