Union Budget 2025: Southern states seek economic relief, infrastructure development, and inclusivity

As the Union Budget draws closer, the people of South India have their own set of expectations and demands.

Published Jan 28, 2025 | 10:00 AMUpdated Jan 28, 2025 | 10:00 AM

Southern States Share Expectations for Union Budget 2025.

From tax relief to sectoral reforms, citizens across the five Southern states of Andhra Pradesh, Karnataka, Kerala, Telangana and Tamil Nadu are looking to the government for solutions that address their pressing concerns ahead of the 2025 Union Budget.

Whilst some call for measures that promote economic equity and empower marginalised communities, others stress the urgent need for infrastructure investment and a greater focus on rural development.

With growing demands for relief and reform, the people of South India are voicing their hopes for an inclusive, equitable and development-focused budget that balances the needs of the common man with the demands of a rapidly changing economy.

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Empowering the marginalised

In Andhra Pradesh, voices from various walks of life have raised the issue of inclusivity. Kolli Durga Vara Prasad, a businessman from Vijayawada, has advocated for special incentives under the Startup India scheme for people with disabilities.

“There should be special loans for the physically challenged, without collateral, and more subsidies,” he said. He urged the government to allocate collateral-free loans and subsidies to empower persons with disabilities, arguing that such initiatives would boost their self-respect and economic independence.

On a similar note, Jammula Chowdarya, a retired political science professor from Rajamahendravaram, has highlighted the importance of science and research in economic development.

He suggested that reducing taxes on essential goods like food and housing would increase the purchasing power of common people, generating higher government revenue that could be channelled into welfare programmes.

Meanwhile, private employee Pachipala Srinivas from Kakinada sought an increase in the income tax exemption limit from ₹5 lakhs to ₹10 lakhs and called for a reduction in the GST on health insurance. His plea for more allocations for startups aims to create employment opportunities for the youth.

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Infrastructure development

As the conversation shifts towards regional development, concerns over infrastructure projects loom large. VSRS Naidu, a high court advocate from Vijayawada, highlighted the ongoing struggle of Andhra Pradesh, which has not been granted special status since the state’s bifurcation.

“Special funds should be allocated for the divided Andhra Pradesh in our central budget,” he said, underlining the importance of fulfilling the promises made during the bifurcation, especially in terms of completing key projects like Amaravati and Polavaram. “The state MPs should not rest until the centre brings funds for these projects,” he added.

The issue of regional development has also been raised by T Amaranath Reddy, a resident of Madanapalle, who called for substantial funding for irrigation projects in Rayalaseema.

“Funds should be allocated for expanding projects like Handri-Neeva,” he said, stressing that these infrastructure projects are vital for the agricultural sector’s growth in the state.

Similarly, Neelam Shankar Rao, a small farmer from Komarada, emphasised the need for increased allocations for Uttarandhra, particularly for irrigation and horticulture projects in the districts of Vizianagaram and Srikakulam.

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Focus on employment and skill development

In both Andhra Pradesh and Karnataka, there is a strong emphasis on employment and skill development. Retired government employee Tripuraneni Venkat Rao from Tenali called for the government to address the plight of handicraft artisans, whose jobs are disappearing in the face of rising corporate culture.

He urged the finance minister to allocate funds to support traditional industries such as handloom and carpentry, ensuring that they do not become extinct in modern society.

In Karnataka, the tax burden on the middle class is a common concern. Amogh, a techie, expressed frustration over the high tax slabs. “I am in the 30 percent tax slab, which means I work almost three months of the year just to pay taxes,” he said.

He pointed out that compared to countries like Germany and the US, the returns on the taxes paid in India are inadequate. “We are paying taxes, but the returns in the form of services like education, healthcare and infrastructure are not in line with what we contribute,” he argued, calling for better value for money from the government.

Similarly, sellers of electronic items in the state have raised concerns about the GST on laptops and computers, which is currently set at 18 percent. “Computers are no longer a luxury item but a basic necessity, especially for students,” said one seller.

They call on the government to reduce the GST to 12 percent, which they believe would make technology more accessible to low-income families and support children’s education.

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Rising costs and struggles

In Kerala, the pain of rising costs is felt across various sections of society. Abdul Majeed, a pensioner, voiced his despair over the ongoing price hikes that have made everyday life increasingly difficult.

From petrol prices to basic goods like bread, Majeed laments that whilst the government may not feel the impact of these increases, they are deeply affecting people like him, who live on fixed incomes.

Shihab, an auto driver from Kochi, criticised the government’s focus on defence spending, suggesting that the share allocated to defence should be reduced and redirected to welfare schemes for the common people.

“The government is elected by the people, for the people,” he pointed out, but he felt that both state and Union governments have failed to prioritise the needs of ordinary citizens.

Students in Kerala are also facing a tough time. As educational expenses soar, many are forced to borrow money to cover medical costs or buy books, which have seen significant price hikes.

Lissy Mathew, a lottery agent, echoed the concerns of these students, noting that her own livelihood has become increasingly difficult as taxes, price hikes and stagnant commissions have eroded her income.

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Tax revisions

Telangana, too, has its own set of demands for the Union Budget. Praneetha Bandaru, a citizen from the state, hoped to see the tax brackets revised so that people could contribute to the economy without being overburdened.

“The economy needs to be more decentralised, and the government should focus on the development of smaller cities rather than just the metropolitans,” she said. She also hoped that small businesses would receive more support from the government, especially in terms of tax relief and incentives.

Freelancer George criticised the lack of regulation on large corporations, claiming that they benefit from tax write-offs whilst small businesses struggle under the weight of excessive taxes. He called for more favourable policies for small businesses, ensuring that they have the support they need to thrive.

Niharika Sana, a data security analyst from Telangana, emphasised the need for continued investment in the country’s railway system and other infrastructure projects. Whilst progress has been made, she believes that there is still much work to be done to modernise the country’s infrastructure and ensure that it meets the growing demands of the population.

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Struggles of small business owners

In Tamil Nadu, small business owners like Rahul are vocal about the challenges they face due to high taxes. They argued that the tax burden on small-scale businesses makes it difficult for them to estimate profits accurately and manage their finances effectively.

Many call for a more predictable and reliable tax system that could help them better navigate the financial uncertainties of running a business.

Tax reforms for lower-income groups are also a major concern in Tamil Nadu. Sirish, an IT professor, highlighted the shortcomings of the current tax regime, which he believes disproportionately affects lower-income citizens.

Whilst the government is providing various services, he questioned whether these services are truly benefiting the people who are paying the taxes.

(Compiled by Deeksha Devadiga. Edited by Dese Gowda)

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