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Budget 2023-24: Finance Minister Nirmala Sitharaman is busy preparing the budget for the 2023-24 fiscal year. Meanwhile, employees are waiting for relief from the government. There is a possibility that the government will bring some income tax relief in this budget. Let us tell you that in recent years no major announcement has been made in the budget discourse regarding improvement in this matter.
The salaried class is considered the largest group of taxpayers in the country. Experts believe that the government should announce some relief for them. The government should consider making the new income tax regime attractive or reducing the tax rates under the old regime. Let us tell you that many appeals have also been made to increase the standard deduction of Rs 50,000 applicable under the old income tax regime.
Experts also believe that there has been slow growth in people’s income after the pandemic. Inflation has also increased. Hence, the demand of the employees is justified. But he doesn’t put much hope in such announcements in the next budget. Many economists have already said that the government faces a tough challenge given the deteriorating global economic environment and the possibility of a slowdown in GDP in the next fiscal year.
Taimur Baig, managing director of DBS, told the Reuters news agency that he expects most of the spending in this budget will go towards infrastructure development. This will increase the possibility of employment in the country and accelerate the pace of development.
The government will also focus on reducing its fiscal deficit in the next fiscal year in view of lower exports amid the global economic slowdown. Reuters economists’ projections also indicate that the government will cut unnecessary spending to protect itself from external shocks.
Although this 2023-2024 budget will be important considering the Lok Sabha elections due next year, most economists believe Finance Minister Nirmala Sitharaman will avoid excessive spending and take a balanced path. In such a situation, the possibility of tax exemption in the next budget is less visible.