New Delhi: The budget session of Parliament is starting from 31 January. The budget session will begin at 11 am on Tuesday with the address of President Droupadi Murmu to the joint sitting of Lok Sabha and Rajya Sabha in the Central Hall.
The Economic Survey will also be tabled in both the houses on the first day of the budget session. After this, Finance Minister Nirmala Sitharaman will present the Union Budget on 1 February.
This Union Budget could be the last full budget before the 2024 Lok Sabha elections. In such a situation, everyone's eyes are fixed on this budget to be presented before the general elections.
Relief on the income tax likely
It is expected that in the budget presented before the 2024 Lok Sabha elections, the government can give some relief on the income tax front to the middle class and employed people.
There is buzz that Nirmala Sitharaman may hike the limit for the highest tax slab from Rs 10 lakh to Rs 20 lakh and reduce the highest tax rate from 30 percent to 25 percent.
Hike in standard deduction expected
Salaried may also see a hike in deduction available under section 80C to Rs 2-Rs 2.5 lakh. A hike in standard deduction from Rs 50,000 to Rs 1 lakh is also expected.
Apart from this, there is also a possibility of increasing the scope of areas covered under the Production Linked Incentive (PLI) Scheme. In view of the current global challenges and the domestic situation, economists say that many global problems have definitely come together. Therefore economic challenges have increased on the front of the economy in the country.
The rise in inflation and current account deficit is accompanied by an insufficient number of jobs being created. Inflation, especially core inflation (excluding fuel and food items), remains elevated
Special emphasis will be on increasing employment and exports
The FM is most likely to address issue of unemplyment and look at supporting poor and middle class, but she will stay away from spending way beyond the country’s means as the government wants to shore up investor sentiment.
The pace of economic growth has slowed down in the first three quarters of the financial year 2022-23. In such a situation, economists are estimating that in the financial year 2023-24, the GDP growth rate will be only 5.2 percent.
It is expected that the Reserve Bank will continue its efforts to control inflation, while in the budget, special attention can be given to economic growth, especially employment-enhancing growth and export-promoting measures.
Centre may likely give its flagship household scheme -- Pradhan Mantri Awas Yojana - a Rs 40,000 crore boost to improve housing among weaker sections.
Last full budget
This year the central government will present a budget which will take the world's fifth economy towards self-reliance. The budget to be presented on February 1 will be the last full budget of the current tenure of the government. Since the general elections are due in the year 2024.
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