The Prime Minister Narendra Modi-led NDA 3.0 government is contemplating consumption boosting measures worth over Rs 50,000 crore ($6 billion) in India’s upcoming Union Budget.

New Delhi: The Union Finance Minister, Nirmala Sitharaman, is expected to announce the Annual Financial Statement for the Financial Year 2024-2025 by July end and all eyes are on the central government to see whether it will make any changes to the tax slabs and give relief to the Indian middle class. If reports are to be believed, it is expected that the new Modi government will give tax relief to the Indian middle class and also raise the amount given to the small farmers under the PM-KISAN Needhi Samman scheme.

Tax Relief For Middle Class?

The Prime Minister Narendra Modi-led NDA 3.0 government is contemplating consumption boosting measures worth over Rs 50,000 crore ($6 billion) in India’s upcoming Union Budget, which may include some potential tax cuts for lower income individuals, as per a Bloomberg report.

Finance Ministry officials are also evaluating proposals to reduce taxes for the taxpayers of India. The potential beneficiaries are individuals earning between Rs 5-10 lakh annually, who are currently taxed at rates between 5-20 percent. Additionally, a new tax slab might be introduced, the report added.

Jump In M-KISAN Need Samman Cash?

The report further claimed that the government is considering raising the annual cash handout to small farmers to Rs 8,000. Currently, farmers receive Rs 6,000 in cash assistance under the PM-KISAN Needhi Samman scheme.

FM Nirmala Sitharaman Chairs pre-Budget Meeting

Union Minister for Finance Nirmala Sitharaman chaired pre-Budget consultations with the Finance Ministers of states and Union Territories to take their views on board for the upcoming Union Budget 2024-25 here on Saturday.

The meeting was attended by Union Minister of State for Finance Pankaj Chaudhary, Chief Ministers of Goa, Meghalaya, Mizoram, Nagaland, and Sikkim; Deputy Chief Ministers of Bihar, Madhya Pradesh, Odisha, Rajasthan and Telangana; State Finance Ministers and other Ministers; and Senior Officers from the States and Union Territories (with Legislature) and the Union Government.

This will be followed by the 53rd meeting of the GST (Goods & Services Tax) Council on Saturday of which the finance ministers of states and UTs are also members.

The GST Council is likely to deliberate on key issues such as the taxes on fertilisers and the inputs of chemicals used for making fertilisers and taxation on online gaming. The need for an amendment to overrule retrospective tax demands and a possible exemption for reinsurance is also likely to be taken up.

(With inputs from agencies)