Arvind Kejriwal, the AAP national convener, expressed his disappointment on February 1, 2025, after the Union Budget 2025 failed to include his long-standing proposal to end billionaire loan waivers. The proposal, which had been emphasized by Kejriwal in the past, was intended to ensure that loans of billionaires would no longer be waived by the government. Kejriwal took to X, stating, "A large part of the country's treasury is spent on waiving off the loans of a few rich billionaires." He had urged that these funds be better allocated to aid the middle-class and farmers, including measures such as waiving home and vehicle loans or cutting income tax and GST rates.

Kejriwal pointed out that such savings could lead to the halving of income tax and GST rates, providing major relief to the common man. He suggested that this would especially benefit middle-class families and farmers, whom he felt were largely ignored in the current budget.

Disappointment from AAP Leaders

AAP leaders, including Sanjay Singh, also voiced their dissatisfaction with the Budget 2025. Singh criticized the lack of tax relief for small traders earning up to ₹12 lakh, claiming that their needs were overlooked in favor of wealthier individuals and businesses. He echoed Kejriwal’s suggestion to recover ₹16 lakh crore in loan waivers given to industrialists. According to Singh, this could provide substantial relief to the middle class and help reduce the tax burden on them.

The budget proposals, presented by Finance Minister Nirmala Sitharaman, included a tax exemption for individuals earning up to ₹12 lakh annually and a restructuring of tax slabs. However, the AAP believes these steps are insufficient, especially for small traders and the middle class. Sitharaman also announced measures like raising the FDI limit in the insurance sector and simplifying tax laws, which were aimed at promoting economic growth and attracting foreign investment.

Despite the proposed reforms, Kejriwal and his party remain vocal about their concerns, calling the budget a missed opportunity to address the deep economic divides, particularly the inequality between the rich and the poor.

The Road Ahead

As the budget discussions continue, it remains to be seen how the government will respond to the criticisms raised by Kejriwal and other opposition parties. The debate over loan waivers, tax cuts, and economic reform is likely to intensify, with a particular focus on ensuring that the middle class, small traders, and farmers do not bear the brunt of economic challenges while large corporations benefit from policy decisions.

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