Focus on income tax relief and increasing consumption

Now less than a month is left for the presentation of Union Budget 2025. Finance Minister Nirmala Sitharaman will present this much-awaited budget on February 1. Tax experts and economists believe that this time the budget can make important announcements to provide relief to the common people and give impetus to the economy.

Expectation of relief in income tax

Tax experts say that the government New income tax regime Big steps can be taken to make it more attractive.

• Promotion of new tax regime: In the last budget (23 July 2024), some important steps were taken to promote the new regime.
• Possible announcement: Changes in tax slabs, increase in standard deduction, and other relaxations are expected in the new regime.
• Plan to increase people’s interest: The government aims to make the new regime attractive to as many taxpayers as possible.

Emphasis on measures to increase consumption

Economists in an important meeting with Prime Minister Narendra Modi on 24 December measures to increase consumption Discussed.

• Focus on demand and growth: Increasing consumption will improve demand and accelerate economic growth.
• Fiscal Deficit: According to the data released on December 31, the fiscal deficit will not exceed the target of 4.9% in this financial year, which may give the government space for economic reforms.
• challenge: However, measures to increase consumption may lead to a slight decrease in government revenue.

Possibility of simplifying GST rules

Simplifying the rules of GST (Goods and Services Tax) can also be a major aspect of this budget.

• Benefits to MSME and agriculture sector: GST rules easily Micro, Small and Medium Enterprises (MSMEs) And the agriculture sector will benefit.
• New Credit Scheme: The government is planning to launch a new credit scheme for MSMEs and agro-farming sector.
• Compliance burden will be reduced: Simplifying GST rules will reduce the administrative burden on the industry.

Promotion of green energy and other emerging sectors

Industry representatives have demanded the government to simplify the rules for some key sectors.

• Green Energy: The government can make special provisions for green energy.
  • Investment and Employment: This sector can attract foreign investment and create new employment opportunities.
• Aim to become a developed country by 2047: To increase India’s economic growth to 7-8%, it will be necessary to create more employment opportunities.

Promotion of agriculture and employment

Government agricultural sector And can pay special attention to employment generation.

• Insurance and Subsidy: New insurance schemes and subsidies may be announced for farmers.
• Employment Generation: The budget may also include measures to increase employment opportunities, especially in emerging sectors.