Hyderabad: There was a clear contradiction between the Economic Survey report 2024-25 which emphasises the Viksit Bharat – 2047 and the budget. The report emphasises the need for sustained 8% annual growth, but the present budget falls short of it and projects growth just over 6 %.

Analyst and former Railway Mazdoor Union leader Shiva Kumar said that the Union government not only failed to address the high inflation which should have been controlled but would be neutralising the impact of tax relief and other relaxations through indirect taxes.

“The government’s own report on the Economic Survey highlights the need for increase in per capita income to achieve growth.

To attain Viksit Bharat -2047 we need to get $13,000 per capita income, but we are still struggling with $2,500 per capita income.

There is a need for at least 8% GDP growth. This is being told by CEO of Niti Aayog himself in his Economic Survey report. However the government estimates are just about 6%. Only when the inflation is under control, then the real income will grow. There is nothing for underclass,” he pointed out.

The Union leader pointed out that the household loans have gone up by 39% of the GDP and if at all the tax exemption helps the middle class these savings would go for repaying the loans.

“The decision on income tax relaxation till Rs 12 lakh was not taken following pressure from the middle class, but owing to the pressure built by businessmen representing FICCI and CII. They want to clear their stock which has got piled up in warehouses because the middle class has stopped spendings,” he explained.

While referring to the Economic Survey report, Shiva Kumar said that the informal sector is close to 95%, where employees do not have paid wages nor health benefits. “They can be hired and fired at any time. Some of the railway contract employees are yet to get their 2-months pay,” he added.