Union Budget 2024: Modi Govt is considering income tax cuts to boost consumption

Union Budget: After the formation of the new government, the central government is now going to present the general budget. It is expected that Finance Minister Nirmala Sitharaman will present the budget in the third week of July.

Many big announcements can be made for the middle class in this budget. One of these announcements can be about income tax reduction.

Prime Minister Narendra Modi’s government is considering more than 500 billion rupees ($6 billion) of consumption-boosting measures in India’s upcoming budget, Bloomberg reports. This includes a tax cut for low-income individuals for the first time in seven years. Finance ministry officials have discussed proposals to reduce taxes for consumers with the highest spending propensity.

Who will get relief

Let us tell you that people earning from Rs 5 lakh to Rs 15 lakh are taxed from 5% to 20%. The government can give relief to such people. Apart from this, a new tax slab can also be decided. The details of the plan are still being worked out and a final decision will be taken sometime in July close to the budget after approval from the Prime Minister’s Office. Apart from this, the government plans to stick to its fiscal deficit target of 5.1% of GDP for the current financial year.

Decision on PM Kisan Samman Nidhi

Apart from this, the government can also take a decision on PM Kisan Samman Nidhi. Talks are going on to increase the annual cash payment to small farmers from the current Rs 6,000 to Rs 8,000. Let us tell you that the government has recently released the 17th installment under the scheme. Let us tell you that the government started the PM Kisan Yojana in the year 2019.

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