Union Budget 2024 Expectations: Tax Exemptions, Jobs

Union Budget 2024: In a few hours, Finance Minister Nirmala Sitharaman will present her seventh budget, an exercise of significant importance on several counts. This budget will throw up the country's roadmap to development by the year 2047. It will take stock of the government's performance during the past decade under Prime Minister Narendra Modi's third term. The focus, this time around, is especially on the middle class and jobs. Announcements are likely on several other such subjects, too, that will benefit farmers, women, and senior citizens.

Tax Reduction?

The Finance Minister can look at easing the tax burden on the middle class by way of revising income tax slabs or by increasing the standard deduction limit. Social security schemes, including health insurance and pension plans, can be strengthened to provide a robust social safety net for the middle class. Measures can be sought to decrease the cost of essential services like education and healthcare. On the other hand, promoting affordable housing schemes will make it easier for the middle class to own homes.

Employment Generation Opportunity

The government can initiate policies aimed at generating employment opportunities in different sectors. There are speculations of major announcements in the budget concerning sectors like manufacturing, infrastructure, and MSMEs. Preparation of the youth for employment through skill training can be emphasized by the government. Startups and entrepreneurship can be encouraged by it. Economic reforms can be introduced to make business easier and reduce compliance regulation.

Budget Initiatives Forecast

Economists expect new pension schemes to come in, such as NPS and social security programs like Ayushman Bharat from the general budget. At the same time, expectations of tax relief are considered low. They bat for building foundational infrastructure, increasing allocations to rural and agriculture sectors, and a slew of policies promoting micro and small industries to push the economy. Also Read: Stock Market Tumbles Ahead Of Budget Announcement: Sensex Drops 500 Points, Nifty Slips Below 24500 While releasing the manifesto, ahead of Lok Sabha polls, Prime Minister Modi had announced that citizens above 70 years would be covered under the Ayushman Bharat scheme for free treatment up to five lakh rupees. He then underlined it is the party's focus toward ensuring dignity, better quality of life, and employment through investments. According to Professor Lekha Chakraborty from the NIPFP, "Social security schemes do find a place in post-pandemic fiscal policies. But insurance schemes in the healthcare sector make this system all the more expensive. What we need is a robust healthcare infrastructure and healthcare workers, not insurance schemes."

Analysis of Outlook in Fiscal Deficit

Estimates of fiscal deficit—how much more the government spends above what it earns—are pegged at 5.1% for the current financial year, against 5.8% in the previous one, according to the interim budget presented in February this year. And now a surge in tax revenue might lead to improved projections in collections. The government has estimated a fiscal deficit of 4.5 percent of GDP for the 2025-26 financial year. Also Read: Budget 2024 Time And Place: Sitharaman To Present 7th Budget, Anticipates Tax Reforms And Business Boost

Tax Exemptions, Pay Commission, Jobs: Expectations From Nirmala Sitharaman In Union Budget 2024

Finance Minister Nirmala Sitharaman will outline India's development roadmap through her seventh budget, addressing key sectors and emphasizing middle-class concerns. Expectations include tax relief, enhanced social security, and measures to boost employment and infrastructure.

Tax Reduction?

Employment Generation Opportunity

Budget Initiatives Forecast

Analysis of Outlook in Fiscal Deficit