Bhubaneswar: With all eyes riveted on Finance Minister Nirmala Sitharaman’s seventh full-fledged budget to be presented on Saturday, the Prime Minister Narendra Modi at the start of budget session dropped a big hint on the contours of the upcoming budget.
It seems the Finance Minister will be presenting a GROWTH-ORIENTED and PLEASE-ALL budget.
But how far it will meet expectations of the people/stakeholders from across the spectrum are remains to be seen on Saturday.
The expectations are high from the Finance Minister as the third quarter GDP numbers have popped up the blips in the Indian economy.
With growth slowing down owing to slackening in private investments, along with a drop in capital expenditure of the Centre and the monster of high inflation eroding the purchasing power of middle class, the micro economy (budgets of corporate and households alike) seems to be in doldrums.
As a consequence, all eyes are on the FM’s macro economic growth plan and steps in the budget, especially the tax sops – both direct and indirect, that should be growth oriented but not inflationary, and at the same time gives more money at the hands of middle class for disposal.
PM MODI DROPS BIG HINT
Speaking to media ahead of the start of Budget Session Friday, a buoyant looking PM Narendra Modi has dropped enough hints about the upcoming budget.
PM Modi addressing the media said:
“Today, at the beginning of the budget session, I bow to Goddess Lakshmi, the goddess of prosperity. And on such occasions, for centuries, we have been remembering the virtues of Goddess Lakshmi:
SiddhiBuddhiPrade Devi Bhakti Mukti Pradayini. Mantrapute Sada Devi MAHALSKHMI Namastute.
Maa Lakshmi gives us success and wisdom, prosperity and well-being. I pray to Maa Lakshmi that every poor and middle class community of the country should be blessed with the special blessings of Maa Lakshmi.”
The intro of PM Modi’s address to media at the start of Budget Session tells it all.
According to PM Modi, the FM Niramala Sitharaman will unveil a budget that will usher in the arrival of prosperity for nation and people, especially poor, alike.
This is the first budget session when PM Modi has invoked the goddess of prosperity at the start of the session.
READ BUDGET 2025 FINE PRINT
MAHALAKSHMI IN MIDDLE CLASS HOUSE
DIRECT TAX PROPOSALS
- Finance Minister Nirmala Sitharaman may keep the peak rate of 30 percent for income above 15 lakhs intact.
- Tax rates may be reduced to 15% for the Rs 10 lakhs-Rs 15 lakhs bracket
- Basic exemption limit may be raised to Rs 5 lakh from Rs 3 lakh
- Standard deductions may be raised to Rs 1 lakh
- 5% tax rate may be likely for income between Rs 6 – Rs 10 lakh.
- Exemptions under healthcare may be upped to Rs 50,000 from Rs 25000
- Exemptions under National Pension System may be hiked to Rs 1 Lakh from present Rs 75 k.
- FM may increase the limit of tax exemption on Saving Account deposits to Rs 20,000.
INDIRECT TAXES
- Budget may go for rationalisation of taxes on indirect taxes that would boost fillip to consumption.
- Taxes likely to be slashed on passenger vehicle, 2 –wheelers to boost manufacturing.
USHERING MAHALAKSHMI IN NATIONAL ECONOMY
Budget may go for upping the capital expenditure to boost the investment cycle of the economy. Capital Expenditure may cross Rs 11 lakh cr.
The Budget size will be increased to over Rs 50 lakh cr.
MAHALAKSHMI IN POOR’S HOUSE
- To give a boost to rural household income, allocation of PM-KISAN will be hiked to around Rs 75,000 in 2025-26
- Budget may increase the PM-KISAN amount to Rs 8000 from Rs 6000.
- MGNREGA scheme will see the highest allocation of Rs 1 Lakh crore .
- Pradhan Mantri Awas Yojana allocation may be hiked to Rs 1 lakh Cr.
- Increase the Kisan Credit Card loan limit to Rs 5 lakh from Rs 3 lakh now.
- Budget may announce Production Linked Incentive (PLI) schemes for MSME sectors.
