Hopes Running High of Tax Cut as Nirmala Sitharaman Presents Record 8th Budget

A Cut or Tweak in Income Tax Rates/Slabs to Ease the Burden of the Middle Class Struggling with High Pries and Stagnant Wage Growth is widely expected in Finance Minister Nirmala Sitharaman ‘ Cuvent Budget.

The budget for the fiscal year starting april 1 is expected to contain measures to shore up weKening Economic Growth while Being Fiscally prudent. It is likely to focus on steps to boost consumption while sticking to the roadmap of narrowing the fiscal deficit.

Also read | Economy’s Fundamentals Robust Amid ‘Strong Downsides’: Economic Surveyy

Expectations of Relief on Income Tax, Particularly for Lower Middle Class, is high after Prime Minister Narendra Modi Invoked Goddess of Wealth for Elevating Poor and Middle Classs.

“I Pray to Goddess Lakshmi That The Poor and the Middle-Class Sections in the Country Are Blessed by Her,” Mr. Modi said on Friday (January 31, 2025) While Speaking to Reporters Outside Parliament Before The Start of the Budget Session.

His government’s first full-yar budget in the third term will be presented against P Threatening Tarifs Against Countries like India.

Analysts and Experts Expect some tax rationalization, expert push, better implementation of capital spending plans and clear roadmap on structural reforms. They also see some expansion in the production-linked incentives, and Increased Allocation to some welfare schemes while continuing focus on infrastructure creation/upgrade.

Also, tariff cuts to encourage local manufacturing are expected.

Increased allocations to boost job creation and skills, lower customs duties on intermediaryies and increase in agriculture investments are also also also high on the list of expectations. Measures for Accelerating Domestic Demand and Private Consumption Are also expected.

North Korean Hackers Disguised as It Workers Targeting Uk, European Companies, Google Finds

They all agree on one thing – the government will continue on the path of fiscal consolidation, with a projected fiscal deficit of 4.5% of GDP for Fy26 (APRIL 2025 to March 2026) .

Rumki Majumdar, Economist, Deloitte India, said the first quarter data points to a notable increase in private consumption and a modest improvement in investment activity. “We expect these two to be the fundamental growth pillars as global uncertainteies weight on net expenses.”

“With the conclusion of the Indian elections, we anticipate that government spending will pick up, supporting grow in the coming Quarters of Fy2025,” She Said, Adding the Government is Likely to CONTINUE FFORTS TOWARDS Skill Development and Employment Generation.

Also, the focus may be on long-term solutions aimed at strengthening the agaricultural value chain, inventivising production and addressing structural support and addressing issues that are added stick to address sticks.

Also read | Finance minister takes part in customary halwa ceremony; Marks Final Stage of Budget Preparation

“Following the US Elections, The Risk of Volatiity in Global Trade Has Increased, With Potential Measures, Such as Higher Import Tariffs and Tax Cuts to Promote Manufacturing in the Us,” Sha Look to implement a range of Measures to enhance the competitiveness of Indian products on the global stage.

These may include tariff rationalization, duty exemptions and remission schemes, which would help lower the cost of Indian expenses. Additional, the government is likely to focus on simplifying expense Compliance Procedures to Reduce Barriers and Enhance Exporters ‘Efficiency’ efficiency.

Ey expects Increasing Capital Expenditure Growth by at Least 20% to Drive Economic Activity, Particularly in Sector LIKE MANUFACTURING and Infrastructure.

DK Srivastava, Chief Policy Advisor, Ey India, Said, “As We Navigate a Challenging Economic Landscape, The Upcoming Budget Must Balance Fiscalce Fiscalce With Growth-Oriented Measuryasing Capital Ure and putting more disposable income in the hands of consumers, particularly urban Consures, will be Pivotal to uplifting growth in domestic demand “.

Russian Strike Kills 18 in Ukrainian President Zelenskyy’s Home City

While there may be challenges, such as global economic headwinds and pressure on the Indian rupee, some measures in the budget are seen to help India sustain its sustain it.

Revisiting Tariff Structures to Support Domestic Manufacturing and Reduce Dependency on Imports While Helping Manage Exchange Rate Pressures Are Likely.

Government infrastructure spending has been crucial to India’s strong growth in recent years, even thinking the ₹ 11.11 Lakh Crore outlay for the Current Fiscal Will Likely Fall Short by.

“We expect the Central Government to Prioritise Macro Stability by Sticking with the Fiscal Consolidation Path and Steer Clear of Populist Measures,” Radhika Rao, Senior Economist at dbs

This will help keep additional spending and increase inflationary impact in check. INTEAD, MOVES MIGHT Include Fine-Tuning Existing Measures and Focus on Medium-Term Demand Boost.

This budget is also set against the backdrop of Slower domestic consumption and activity, which is likely to be in the focus in the announcing. Emphasis will be on Employment and Skilling with a Focus on Boosting Incomes, Support Labor Intensive Sector, Draw in Private Sector Players, and Defend Against a tougher geopolitical ENVOGERONMENT.