Tuesday, March 7, 2023

No tax on income upto Rs. 7 lakh

  • Big relief to middleclass in the budget before elections
  • Long term capital investment increased
  • Rly outlay improved to all time high

The Finance Minister Niramala Sitharman’s budget proposals have given great relief to the middleclass. The focus of this budget, according to the FM, on “green growth, youth power, farmers and women.” This is the last full-fledged budget by the FM before the next general elections in 2024.

In a big relief to the middleclass ahead of elections, she said there will be no tax to income upto Rs. 7 lakh a year-up from Rs.5 lakh. The investment cap for the Monthly Income Scheme and Senior Citizens’  Saving Scheme have been raised.

The government has chosen seven priority areas: inclusive development, reaching the last mile, infrastructure and investment, unleashing the potential, green growth, youth power and financial sector.

The minister has enhanced the outlay for railways. She announced an outlay of Rs.2.4 lakh crore, the highest in a decade. It is four times the last year’s allocation.  Nirmala said this year’s outlay for railways is about nine times the outlay made in 2013-14 by the UPA government.

Nirmala said this is the first budget Amrit Kaal of 25 years after which India would be culminating in the centenary of India’s independence. Capital investment outlay will be raised by 33% to Rs. 10 lakh crore which will work out to 3.3 percent of the GDP in 2023-24. She announced at the very outset that Indian economy had grown from 10th to fifth largest and the per capita income of Indians has doubled. She also referred to the presidency of G-20.

Nirmala said the fiscal deficit target of 6.4 per cent will be remaining the same in the revised estimate for the current fiscal year. The government aims to cut down the deficit to 5.9 percent for fiscal 2023-24.

The Finance Minister promised to set up a national digital library for children and adolescents, re-frame teachers’ training through various programmes and promote research and innovation in pharma. In the next three years the government will recruit 38,800 teachers for Ekalavya Model Residential Schools.

K. Ramachandra Murthy
K. Ramachandra Murthy
Founder & Editor

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