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When asked about the expectations regarding social security schemes in the budget, renowned economist and professor at the National Institute of Public Finance and Policy (NIPFP) NR Bhanumurthy said, “Some announcements are expected on NPS and Ayushman Bharat in the budget.” There has been a lot of discussion at the state level regarding the pension scheme. The central government also formed a committee on NPS (New Pension System). The Prime Minister has said some things about Ayushman Bharat. In such a situation, some announcements can be expected in both the schemes.
Prime Minister gave indications before Lok Sabha elections
Announcing the BJP's manifesto for the Lok Sabha elections, PM Modi said that all citizens above the age of 70 years will be brought under the Ayushman Yojana for free treatment up to Rs 5 lakh. He also said that the party's focus is to ensure dignity and better life and employment of the people through investment.
Speaking about NPS and Ayushman Bharat, Sachin Chaturvedi, economist and director general of research institute RIS (Research and Information System of Developing Countries), said, “This is a very important area. The flagship programmes are already close to reaching the full target… new steps can be expected in this direction.
In this regard, Professor Lekha Chakraborty at NIPFP said, “Social security schemes are important in the post-pandemic financial strategy. However, insurance schemes in the health sector make the system more expensive. Instead of insurance schemes, we need strong health infrastructure and health workforce.
What do experts think about income tax in Budget 2024?
Asked about tax relief in the Budget amid the BJP's failure to secure an absolute majority in the Lok Sabha elections, Bhanumurthy said, “I don't think the election results will directly impact tax policy. Since private consumption is a concern, the GST Council should consider reducing its rates, especially when tax collections have hit record levels. Chaturvedi also said, “I don't think there will be any reduction in rates in the Budget.” Chakraborty said, “Reducing tax rates will increase the disposable income in the hands of people and increase consumption. But we have to keep in mind that only a small part of the country's population (about 4 per cent) pays income tax.
Budget 2024 is expected to focus on employment as well as growth
Responding to another question, Bhanumurthy said, “The budget is likely to focus on employment as well as growth. Since PLI (Production Linked Incentive) has helped the industry during the Covid pandemic, now there is a need to assess whether it has also helped in job creation. This means that the PLI scheme needs to be evaluated.
Responding to a question on the free foodgrains scheme for the 80 crore population, Chaturvedi said, “After a lot of effort, India has lifted more than 35 crore people out of multidimensional poverty. All efforts must be made to prevent them from falling back into the same situation. Food programmes are only a part of the solution at that stage. Development of micro and small enterprises, better health coverage and continued efforts for access to sanitation will be equally important.
However, Bhanumurthy said that all measures like the food scheme launched during Covid need to be reconsidered. Instead, there are other areas like rural development on which the government needs to focus.