Finance Minister Nirmala SitharamanImage credit source: PTI
On the one hand, the world is fighting a major war on two fronts. Russia is attacking Ukraine on a daily basis, while Israel is firing missiles on a daily basis to destroy Hamas. Both these wars have affected the global supply chain. Due to this, not only has the global economy collapsed, but there has also been a decline in employment and a rise in inflation. In such a situation, the biggest challenge for the Government of India in this budget will be to address these two. This budget, to be presented on July 23, will not only be important for taxpayers, but will also be special for those thousands of youngsters who dream of becoming taxpayers one day. It will be interesting to see in the budget speech whether the country’s economy gets a booster dose from Finance Minister Nirmala Sitharaman’s briefcase or whether it remains just a general budget.
What will be the schedule on budget day?
Finance Minister Nirmala Sitharaman will leave her home for Mantralaya at 8.40 am on July 23. She will have a photo session with the budget-preparing team from the ministry around 9 am. She will then go to seek the President’s approval to present the budget. At 10 am, the Finance Minister and the Minister of State for Finance will arrive at Parliament with the budget and another photo session will take place there. The tradition of photo session twice before the budget is already continuing. Later, at 11 am sharp, Nirmala Sitharaman will present the budget in the House and deliver her budget speech.
After the presentation of the budget by Finance Minister Nirmala Sitharaman, Prime Minister Narendra Modi will give his reaction on the budget around 1 pm. At 3 pm, the Finance Minister will hold a press conference with her team on the budget. If media reports are to be believed, the overall budget is likely to be discussed for 20 hours each in Lok Sabha and Rajya Sabha.
This information came out in the economic survey.
The economic growth rate is estimated to be 6.5-7 per cent in the financial year 2024-25, while it is estimated to be 8.2 per cent in 2023-24. The report said that the unprecedented third popular term of Prime Minister Narendra Modi’s government indicates political continuity. Despite uncertain global economic performance, domestic growth-promoting factors have supported economic growth in the financial year 2023-24. The Indian economy is in a strong and stable position, demonstrating its fighting capacity to cope with geopolitical challenges. To fully overcome the effects of the global pandemic, hard work will be required on the domestic front. Better corporate and bank balance sheets will further strengthen private investment. Remittances from Indians living abroad are expected to rise 3.7 per cent to $124 billion by 2024. It is expected to reach $129 billion by 2025.
Will PM get Awas Yojana booster dose?
Releasing the Bharatiya Janata Party manifesto for the Lok Sabha elections, Prime Minister Modi said that all citizens above the age of 70 years will come under the ambit of Ayushman Yojana for free treatment up to Rs 5 lakh. He also said that the party’s aim is to ensure dignity and better life and employment of the people through investment. In such a situation, it is hoped that the government will be able to fulfil this announcement in this budget.
The government may also release more funds in the budget for Pradhan Mantri Awas Yojana-Rural. In such a situation, with the release of fresh funds, the target of constructing 31.4 lakh houses in rural areas can be achieved by March 2025. Pradhan Mantri Awas Yojana has been a flagship scheme of the Modi government. This scheme has been framed to fulfil the Housing for All goal of the government. Under Pradhan Mantri Awas Yojana, a target of constructing 2.95 crore houses in rural areas by March 2024 has been set. Since the scheme was launched in November 2016, construction of 2.63 crore houses has been completed in the country. This scheme was relaunched by the Modi government making radical changes in the Indira Awas Yojana of the previous government.
Will there be a change in the tax rate?
Asked about tax relief in the Budget amid the BJP failing to secure an absolute majority in the Lok Sabha elections, Professor NR Bhanumurthy of the National Institute of Public Finance and Policy (NIPFP) said, “I don’t think the election results will have any impact on the direct tax policy, but it will be affected. Since private consumption is a cause of concern, the GST Council should consider reducing its rates, especially when tax collections have reached record levels. In such a situation, there is very little hope of the government making any major changes in the tax platform.
Can this scheme be reestablished again?
If media reports are to be believed, the Central Government may increase the allocation for Railways. In such a situation, it is expected that the government may offer a big relief to senior citizens in this general budget. For this, the 50 per cent discount given to them on railway tickets may be restored. Let us tell you that before Covid, as per the government rules, senior men used to get up to 40 per cent concession on railway tickets, while senior women used to get 50 per cent concession on tickets. Till the end of 2019, IRCTC used to offer reduced fares to male passengers aged 60 years and above and female passengers aged 58 years and above on railway tickets of Duronto, Shatabdi, Jan Shatabdi, Rajdhani, Mail and Express trains. For example, if the first air-conditioned ticket of Rajdhani train is priced at Rs 4,000, for senior citizens it used to cost only Rs 2,000 or Rs 2,300.
Farmers can get a big relief
Some experts say that the government may increase the PM Appointment Kisan Samman Nidhi Yojana. Currently, under this scheme, the government provides Rs 6,000 per year. Which goes into the account in three installments. The government may increase it to Rs 10,000. However, this time the government may also focus on doubling the income of farmers. The loan limit of Kisan Credit Card can be increased from Rs 3 lakh to Rs 5 lakh. Not only this, the government may increase the loan limit without any collateral from Rs 1,60,000 to Rs 2,60,000.
