How Budget 2025 will treat your wallet and shape the markets

In this podcast episode, businessline’s Akshata Gorde discusses the key highlights of the Union Budget for 2025-26 with A. Balasubramanian, CEO of Aditya Birla Sun Life AMC. Balasubramanian provides insights into how the budget will impact capital markets, economic growth, and investments.  The budget’s relaxation in income tax, allowing individuals earning up to ₹12,00,000 to pay no tax, is a key highlight. Balasubramanian suggests that while this may boost disposable income, it’s more beneficial for the economy if this money is spent, rather than invested in SIPs, to stimulate GDP growth.  The conversation also covers the reduction in government capital expenditure (CapEx). Balasubramanian highlights that the focus on fiscal consolidation doesn’t undermine essential investments, especially in sectors like mining, electronics manufacturing, and shipping, which could boost employment and economic growth.  Balasubramanian discusses the impact of tax changes, including an increase in long-term capital gains tax from 10% to 12.5% and adjustments to REITs and InvITs taxation, designed to foster alternative financing options for businesses. He also emphasises the development of Gujarat’s Gift City as an emerging investment hub.  Lastly, the podcast touches on expected changes to the Income Tax Bill, which could simplify tax structures and benefit capital markets. Overall, the episode offers valuable insights into how government policies and market dynamics intersect.  (Host: Akshata Gorde, Producer: Amitha Rajkumar , Prethicshaa)