It’s a question that pops up in everyday conversations, doesn't it? "What's more expensive?" We see prices fluctuate, some things creeping up steadily, others taking a sudden leap. It’s not just about individual items; it’s about how our overall cost of living shifts.
Recently, I was looking at the Union Budget highlights for 2025, and it offered a fascinating glimpse into where things are headed. The Finance Minister laid out plans that touch on everything from income tax to the cost of everyday goods. It’s a complex tapestry, but when you pull at a few threads, you start to see a clearer picture.
One of the most direct impacts on our wallets comes from income tax adjustments. This year, there's a push to ease the burden on the middle class. For instance, the income tax rebate has been extended to those earning up to ₹12 lakh under the new tax regime. That’s a tangible saving for many families. Plus, a higher standard deduction for salaried individuals is a welcome change, meaning more of your hard-earned money stays in your pocket. Even TDS exemptions are being tweaked to benefit lower-income taxpayers, aiming to reduce unnecessary deductions and streamline compliance. For senior citizens, there's a specific threshold of ₹1 lakh for interest income before TDS applies, which is a thoughtful consideration.
The budget also detailed new income tax slabs, which can feel a bit like a puzzle at first glance. Up to INR 4 lakh, there's no tax. Then, it gradually increases: 5% from INR 4 lakh to INR 8 lakh, 10% from INR 8 lakh to INR 12 lakh, and so on, capping at 30% for incomes of INR 24 lakh and above. The aim here, as I understand it, is to simplify the tax structure, making it less prone to disputes and more efficient for everyone involved.
But it's not all about taxes. The budget also shed light on what's becoming cheaper. This is where things get really interesting for consumers. For example, 36 essential medications for cancer and chronic diseases are now fully exempted from basic customs duties. That’s a huge relief for many. On the electronics front, the Basic Customs Duty (BCD) for open cells and other electronic components has been reduced to 5%. And for those looking at greener options, various components for EV batteries and mobile phone battery manufacturing will now be exempt from customs duties. Even something like Frozen Fish Paste (Surimi) is seeing a significant drop in customs duty, from 30% to 5%.
So, when we ask "what's more expensive?", the answer isn't a simple one-liner. It's a dynamic interplay of government policy, global supply chains, and market forces. While some essential medicines and electronics are becoming more affordable, the overall cost of living can still feel like a challenge. The budget aims to balance these factors, offering relief in some areas while potentially seeing increases in others due to broader economic trends. It’s a constant navigation, and staying informed, like looking at these budget highlights, helps us make sense of it all.