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. A lot of big announcements can be made for the middle class in this budget. One of these announcements could be a reduction in income tax.
Prime Minister Narendra Modi’s government in India’s next budget will spend Rs. 500 billion ($6 billion) is considering measures to boost consumption, Bloomberg reports. It also includes tax cuts for low-income individuals for the first time in 7 years. Finance Ministry officials have discussed proposals to reduce taxes for consumers with the highest propensity to spend.
Who will get relief?
Let us tell you that 5% to 20% tax is levied on people earning between 5 lakh to 15 lakh rupees. Government can provide relief to such people. Apart from this, a decision can also be taken on the new tax slab. The details of the plan are still being worked out and a final decision will be taken in July, closer to the budget, after approval from the Prime Minister’s Office. Besides, the government plans to stick to its fiscal deficit target of 5.1% of GDP for the current fiscal year.
Decision on PM Kisan Samman Nidhi
Apart from this, the government can also take a decision on PM Kisan Samman Nidhi. Annual cash payments to small farmers are currently Rs. 6,000 to Rs. 8,000 is under discussion. Let us tell you that the government has recently announced the 17th installment under this scheme. Let us tell you that the government started the PM Kisan Yojana in the year 2019.