Budget 2024: Interim budget will be populist, salaried class, farmers and government employees will get a gift!

Modi government has its eyes on everyone from salaried class to farmers and women. Salaried class and women are troubled by inflation for the last one year. In such a situation, it is expected that Nirmala Sitharaman can give big relief to the taxpayers on the tax front to provide relief from inflation. In the interim budget, the standard deduction limit can be increased from the current Rs 50,000 to Rs 75,000. Also, under the new tax regime, at present income tax is not payable on income up to Rs 7 lakh.  This limit can be increased to Rs 7.50 lakh.  With increasing expenses on treatment and medical insurance becoming expensive, the deduction limit for claiming tax exemption on payment of mediclaim premium can also be increased.  

To encourage savings, there is pressure on the government to increase the investment limit under 80C to above Rs 1.50 lakh and the limit of tax exemption on home loan interest to more than Rs 2 lakh.  If the tax burden on the middle class is reduced, it will help in increasing consumption which will benefit the economy. 

Treasury will open for farmers, announcement of Urban MNREGA is possible!

Modi government had promised to double the income of farmers by 2022, which is still incomplete. In such a situation, to provide relief to the farmers, the government can announce an increase in the amount given annually under PM Kisan Yojana from Rs 6000 to Rs 9000. The MNREGA scheme had proved to be the most effective program in providing employment in rural areas during the Corona period. It is believed that the Central Government can start a scheme like Urban MNREGA to overcome the problem of unemployment in urban areas. 

NPS will be made attractive!

To review the NPS, a committee headed by Finance Secretary TV Somanathan was constituted by the Central Government in April 2023. Meanwhile, the committee has discussed NPS with different stakeholders apart from government employees. When Finance Minister Sitharaman presents the interim budget, there are chances that she will also present the status report regarding the National Pension Scheme in the Parliament. 

Announcement of making 8th Pay Commission 

The government is also eyeing 1.17 crore central employees and pensioners. In such a situation, there is a possibility that Modi government may announce the formation of 8th Pay Commission for government employees and pensioners including Defense Forces in the interim budget. So that the votes of government employees and pensioners can be secured. The recommendations of the 8th Pay Commission are to be implemented from January 1, 2026. 

Emphasis will be on strengthening the infrastructure 

In the current year 2023-24, the Modi government had allocated Rs 10 lakh crore for capital expenditure to strengthen the infrastructure so that world class infrastructure can be created in the country. A provision of up to Rs 12 lakh can be made in the interim budget for capital expenditure. This will create new employment opportunities. The government is also going to focus on modernization of railways. Announcement of running around 400 new Vande Bharat trains is possible in the budget. 

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