Finance Minister Nirmala Sitharaman
Union Finance Minister Nirmala Sitharaman will present her eighth consecutive budget on Saturday, in which income tax rates/slabs are expected to be cut or changed to provide relief to the middle class struggling with inflation and stable increment. The Finance Minister can also take measures to support the weakening economic growth in the budget of FY 2025-26 while standing on the draft of reducing the fiscal deficit.
The expectations of getting relief in income tax have increased after Prime Minister Narendra Modi invoked the goddess of wealth for the upliftment of the poor and middle class. Especially the lower middle class may get some relief in the budget.
Minor improvement in investment activity
Deloite India economist Rumki Majumdar said that the first quarter figures indicate a significant increase in private consumption and a slight improvement in investment activity. He said that with the conclusion of elections in India, it is estimated that government expenditure will increase, which will support the increase in the upcoming quarters. He said that the government will continue to prioritize efforts towards skill development and employment generation.
Priority can prefer extensive stability
Ernest and Young (EY) hopes that capital expenditure will increase at least 20 percent to promote economic activity. DK Srivastava, the Chief Policy Advisor in EY India, said that the fiscal restraint should be balanced with increased measures in the upcoming budget amid the challenging economic scenario. DBS senior economist Radhika Rao said that the central government can prioritize wide stability by staying on the path of fiscal consolidation and away from populist measures.
Sitharaman’s record eighth budget
Finance Minister Nirmala Sitharaman finalized the full budget before the third term of the Narendra Modi government on Friday. It is expected that there will be a balance between the needs of the economy to promote the aspiration and growth of the middle class tax deduction. Sitharaman will present a record eighth consecutive budget on February 1. Along with the fiscal fiscal, it is expected to support the weakening economic growth and to reduce the burden on the middle class struggling with high prices and stable increment.
Economic review data
The Finance Ministry said on the social media forum ‘X’, Union Finance and Corporate Affairs Minister Nirmala Sitharaman today finalized the Union Budget 2025-26 in his office in North Block in New Delhi and the secretaries and senior secretaries involved in the budget construction process. Talked with the officials. Minister of State for Finance Pankaj Chaudhary also participated in the meeting. This budget will come at a time when the growth rate of GDP (GDP) in the current financial year is estimated to decrease to a four -year low to 6.4 percent. In the Economic Review 2024-25 presented by the Finance Minister in both houses, it is estimated that India’s GDP growth rate will be 6.3-6.8 percent in FY 2025-26, which is much lower than the required growth rate to become a developed nation.
To promote increase in economic reviews, regulation and reforms have been described in areas such as land and labor. This indicated that India’s world -class growth is slowing down and by 2047, there is a need to do more work to achieve an eight percent growth rate required to achieve the target of India. (Input-PTI)
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