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Budget 2023-24: The Modi government is going to present the budget on February 1, 2023, the last full term of its second term. Exactly one year later, in 2024, the Lok Sabha elections are going to be held. Before that the government will be able to present the interim budget in 2024. The Modi government is going to present this full budget when former Congress President Rahul Gandhi was out on Bharat Jodo Yatra to surround the Modi government, which has just ended. Rahul Gandhi has spoken vehemently about the policies of the Modi government. Now the main opposition party has started the Hath Se Hath Jodo campaign. Under this mission, the party is distributing the charge sheet of the failures of the Modi government from house to house. Political attacks on the Modi government will intensify as the election draws closer. The pressure on the Modi government is increasing, so the Prime Minister Narendra Modi Has also advised his ministers to spread the success of the central government to every household and connect with the middle class. In such a situation, the question arises whether the upcoming budget will be populist or will accelerate economic development in view of the global economic crisis.
Gotta please everyone in election season!
The Modi government is being accused of being a government of industrialists, so this budget is the last chance for the government to improve its image. Recently, the ruling party won the assembly elections in Gujarat and had to taste defeat in the assembly elections in Himachal Pradesh. The party has faced defeat in the by-elections held in Delhi MCD and several states. Assembly elections are to be held in nine states in 2023, which is the semi-final before the Lok Sabha elections. In such a situation, there is pressure on the Modi government to improve its image from middle class to farmers, laborers, youth, students, elders and middle class. In such a situation, it is believed that the Modi government can make populist announcements in this budget to please all the sections, and at the same time, it can also increase the capital expenditure drastically to speed up the economic development.
Middle class upset with inflation!
Inflation has troubled the common man the most in the last one year. Especially the middle class. From petrol diesel to CNG-PNG, edible oil, flour and rice everything has become expensive. On that the government increased the GST on packed food items. In the name of keeping a check on inflation, the RBI made the loans expensive. As a result, home loan EMIs have become costlier, which has put a dent on savings. In such a situation, there is the biggest pressure on the Modi government to give relief to the middle class in this budget. Recently, Finance Minister Nirmala Sitharaman had said that being middle class, she feels their pain. After this statement of the Finance Minister, he will have to please the middle class. In such a situation, Nirmala Sitharaman can increase the tax exemption limit to Rs 5 lakh, which is currently Rs 2.50 lakh, to popularize the new income tax system in this budget. Also, the 10% tax on income between Rs 2.50 to 7.50 lakh can be reduced to 5%. There is pressure on the government to rationalize the tax slabs under the old tax system. To encourage savings, there is pressure to increase the investment limit under 80C above Rs 1.50 lakh and to increase the tax exemption limit on home loan interest above 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, Urban MNREGA possible
The Modi government had promised to double the income of farmers by 2022, which is still incomplete. In such a situation, to give relief to the farmers, the government can announce to increase the amount given annually from Rs 6000 to Rs 8000 under PM Kisan Yojana. The MNREGA scheme proved to be the most efficient program to provide employment in rural areas during the Corona period. Now it is believed that the central government can start a scheme like urban MNREGA to solve the problem of unemployment in urban areas. There is double pressure on the government. One has to live up to the expectations of the people in the election year. Also, in view of the global economic challenges, economic development has to be accelerated.
Emphasis on strengthening of infrastructure
In the current year 2022-23, the Modi government had allocated Rs 7.50 lakh crore for capital expenditure so that world-class infrastructure could be created in the country. It is believed that this year also the government can make provision of a huge budget for capital expenditure. This will help in averting the economic crisis, new employment opportunities will be created as well as will help in strengthening the infrastructure. The government’s emphasis is also going to be on the modernization of railways. Announcement of running many new Vande Bharat trains is possible in the budget.
More sectors will come under PLI scheme
The government has encouraged investment and manufacturing in many sectors through the PLE scheme. It is believed that in this budget some more sectors can be added under the PLI scheme to attract investment. Can give more incentives to promote Make in India in defense sectors. This will not only help in promoting defense manufacturing in the country but also create new employment opportunities.
There will be confluence of populist and development oriented budget!
In such a situation, the last full budget of the second term of the Modi government will also be populist, in which every section will be taken care of, and at the same time, in view of the global economic challenges and the possibility of a partial recession, the pace of development will continue to accelerate.
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