On February 1, Union Finance Minister Nirmala Sitharaman is going to present the Union Budget 2025-26, the estimated revenue and expenditure for the next financial year, in Parliament. However, there is a doubt as to what interest the common man has if the central government presents a budget for the country?!.

Be it the central budget or the budget of the states, every item in it directly or indirectly affects every person in the country or particular state. That is why it is better for every person to know which items have been given priority in the budget and how much funds have been allocated to which sector. It is very important to understand how the items in the budget will affect their families and their lives. Budget is very significance for every ordinary citizen, because it influences everything from income to expenses.

Ordinary Citizen Should Grasp Budget

The Union Budget has a significant impact on the lives of common people. By understanding the key aspects of the budget, individuals can make informed decisions and actively participate in the democratic process. Every ordinary citizen can make themselves educated financial choices. Understanding the tax effects of budget modifications can assist individuals in managing their finances more efficiently.

The Union Budget greatly affects the everyday lives of ordinary individuals in multiple ways.

Economic Consequences

·         Inflation: Fiscal policies have a direct impact on inflation levels. Actions taken to curb inflation aid consumers by maintaining stable prices for basic necessities.

·         Job Creation: Government investment in infrastructure and social initiatives can generate jobs, resulting in more employment opportunities.

·         Economic Expansion: Fiscal strategies designed to boost economic expansion can result in increased earnings and enhanced quality of life.

Social Influence

·         Key Sectors: Budget allocations for the some key sectors like – Health Care, Education, Agriculture, Irrigation, Roads and Infrastructure, Development programs in Backward Areas,   and Welfare Schemes directly influence the quality and accessibility of services for the average person.

·         Funding: Boosting financial resources for education can enhance access to quality learning, particularly for disadvantaged groups within society.

·         Social Security: Financial allocations for social security initiatives such as pensions and welfare programs create a safety net for at-risk groups in society.

Tax Consequences

·         Income Tax: Alterations in income tax brackets, deductions, and exemptions directly affect the disposable income of taxpayers.

·         Indirect Taxes: Variations in indirect taxes such as GST can influence the costs of common products and services.

Development of Infrastructure

·         Transportation: Spending on infrastructure such as roads, railways, and airports enhances connectivity and facilitates travel for everyday people.

·         Rural Development: Financial allocations for rural development initiatives can enhance the lives of individuals in rural regions by ensuring improved access to essential services such as electricity, water, and sanitation.