Published By: Admin

Budget 2024-25: Expected Reforms to Boost the Common Man's Income Under Modi 3.0

On Tuesday, July 23rd, Union Finance Minister Nirmala Sitharaman is set to present the Budget for FY 2024-25 in the Lok Sabha. This upcoming budget marks a significant economic milestone for the Modi 3.0 government, expected to chart a roadmap towards India's development as a fully developed nation by 2047. Hinting at sweeping reforms with the aim of accelerating national progress, President Draupadi Murmur recently addressed the Parliament.

The suspense surrounding the budget is incontrovertible  across various sectors, including industries, agriculture, and the middle class, where all are expecting a substantial tax relief and incentives from Finance Minister Nirmala Sitharaman. There is particular interest in potential adjustments to tax deductions and exemptions, which have been long standing demands, especially among middle-income taxpayers. Many are also looking forward to enhancements in the new tax regime to make it more appealing and competitive.

The government's approach in this budget is eagerly awaited, with expectations running high for policies that address the rising cost of living and stimulate economic growth across diverse segments of society.

Expected Economic Reforms for Budget 2024-25

  1. Increase the Section 80C deduction limit to Rs 2 lakh annually to accommodate a wider range of investments.
  1. Consider reducing tax rates based on the increase in revenue.
  1. Since April 2023, there has been a noticeable shift towards equities in investor portfolios. Recognizing the importance of a balanced debt-to-equity ratio, investors expect incentives for debt mutual funds. It's also crucial to maintain the current capital gains tax rate for equities.
  1. The government plans to expand the beneficiary base of the Ayushman Bharat health insurance scheme.
  1. Medical insurance remains a significant expense for many Indian families. In the Interim Budget 2024, the government increased funding for AB-PMJAY. The coverage limit, set at Rs 5 lakh in 2018, is expected to double to adjust for inflation and provide relief for expensive treatments.

Regarding the forthcoming budget, the Union Finance Minister Nirmala Sitharaman has held elaborate discussions with several stakeholders, including leaders of the Indian industries and economists. To stimulate consumption, many experts have highlighted the significance of tax relief for ordinary citizens. In addition to this, the experts have also recommended measures to control inflation and speed up economic growth.