Union Finance Minister Nirmala Sitharaman is going to unveil the 2024-25 fiscal years’ budget. The interim budget is to be presented on February 1, it will be a vote-on-account. The Narendra Modi government has indicated that four categories will be given priority in the Union Budget to be presented in the second day of the Budget Session of the Parliament on February 1. Union Finance Minister has holds number of consultations with the stakeholders. So far, the government has received more than 1,200 applications. On the other hand, Prime Minister has appealed to the people to give suggestions on what should be the BJP manifesto.
An interim budget is usually presented during an election year. It represents the revenue and expenditure of the government until a new government is formed. This year's budget is focusing on four major sections. It is expected that allocations are more for the poor, farmers, women and youth. The Finance Minister said that the Prime Minister has directed to give priority to these four categories. A few days ago, Finance Minister said that there will be no major announcements in this year's budget. However, political analysts say the NDA government, which is expected to win the upcoming general elections and come to power for the third time, is likely to announce an amulet in this budget.
The government says revenue has increased after the introduction of the Goods and Services Tax (GST). Subsidies to the corporate sector have increased significantly after Modi came to power. Taxes on this sector have been reduced. The Prime Minister said that his government is working towards the upliftment of the poor and after coming to power, crores of families living below the poverty line have come up.
It is expected that there will be important announcements regarding youth, women, farmers and the poor. The Centre is planning to increase the assistance of PM Kisan Samman Nidhi to farmers, an Rs 6000 is expected to rise to 9000. In addition to this, women farmers will be given financial assistance of Rs. 12000 as agriculture investment for cropping season.
The announcements are likely to include a PM-Awas Yojana-like scheme for urban people, a reduction in excise duty on petrol and diesel, and a subsidy on electric vehicles. It remains to be seen whether the Modi government, which has focused on infrastructure like the last few budgets, will make announcements to impress the people this time.
The Centre has a proposal to release 18 months' arrears of Dearness Allowance and Dearness Relief to employees and pensioners pending during the coronavirus pandemic. Announcements are likely to be made.
Taxpayers are demanding more income tax relief. The Centre may also make an announcement in this regard in the wake of demands to extend the revised ITR deadline and provide tax exemptions.
There are requests from automobile sector to give more incentives to them and help in automobile sector development.
Another important factor is the rise in prices of essential commodities, edible oils and vegetables. We are discussing what steps the Centre will take to bring down the prices. No one can deny the fact that it is the middle class that is burning in the fire of prices under any government. The prices of petrol and diesel have hit the common man hard. Oil prices are depending on the international market. Recent wars in the Gulf and West Asia have increased the burden of oil imports. The Finance Minister said that Rs. 2.5 lakh crore has been transferred through the cash transfer scheme to provide direct benefit of the government to the poor.
