The Union Budget 2024, presented by Finance Minister Nirmala Sitharaman, has been met with significant criticism from the middle class, who feel they received no relief. Here, we examine three possible reasons for this situation.

1. Substantial Relief in Previous Terms

The BJP government has implemented numerous initiatives in its first two terms aimed at benefiting common citizens. Programs like the Swachh Bharat Abhiyan, Beti Bachao Beti Padhao, and Ayushman Bharat were introduced to improve the lives of ordinary people. However, these initiatives required substantial funding, leading to significant expenditure. In the 2024 budget, the government is likely avoiding such large-scale schemes to prevent further strain on the economy.

2. Impact of COVID-19

The COVID-19 pandemic caused severe economic disruptions worldwide, and India was no exception. The long lockdowns in 2020 and 2021 led to significant losses in sectors such as tourism, education, and sports. Additionally, the government had to cover extensive medical expenses for those affected by the virus. The current budget may be an attempt to recover these losses, thereby refraining from offering additional financial relief to the middle class.

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3. Increasing Trend of Students Studying Abroad

In recent years, many Indian students have chosen to pursue higher education abroad instead of enrolling in domestic universities. This trend is partly driven by the growing population and rising unemployment in India. As a result, students seek better job prospects in foreign countries, leading to a brain drain. This exodus results in a substantial financial outflow from India, which adversely affects the country's economy. To counter this, the government may be aiming to increase revenue from the large middle-class population.

The decision to provide no significant relief to the middle class in the Union Budget 2024 can be attributed to the need to safeguard the economy. The government appears focused on recovering from past expenditures, the financial impact of the COVID-19 pandemic, and the economic effects of a brain drain due to students moving abroad for education.