New Delhi: After the Lok Sabha elections in 2024, the Modi government is gearing up to present its first general budget. Finance Minister Nirmala Sitharaman will unveil the budget for the financial year 2024-25 in Parliament tomorrow. Speculation abounds that this budget could serve as a roadmap for India’s economic trajectory until 2047.
The Salaried Class and Allegations
Even before the budget announcement, allegations are swirling around the government. Experts have accused the administration of exploiting taxpayers from the salaried class. Their argument centers on the disproportionate burden borne by salaried employees, who see taxes deducted from their modest incomes, while wealthy business tycoons and farmers often escape similar tax obligations. Consequently, there is an annual clamor for tax relief for salaried individuals in the budget.
The Government’s Revenue Engine: Direct Tax
The government’s coffers are significantly bolstered by direct taxes collected from salaried taxpayers. These direct taxes constitute the primary source of government revenue. The individual income tax and corporate income tax contribute substantially to this pool. Recent figures reveal an impressive surge in direct tax collection during the current financial year, with a remarkable 24.07% increase, amounting to ₹5.74 lakh crore as of July 11.
Modi’s Third Term: Budget Priorities
As the monsoon session kicks off in Parliament today, all eyes are on Finance Minister Nirmala Sitharaman. On July 23, she will present the Union Budget for the fiscal year 2024-25. This budget will provide crucial insights into any shifts in the government’s economic policies. While maintaining fiscal discipline, the budget is expected to strike a balance between economic imperatives and political considerations. The windfall from the Reserve Bank of India’s $25 billion surplus transfer will likely fuel increased spending on infrastructure and manufacturing. Analysts anticipate a continued focus on promoting domestic manufacturing and job creation.
The big question remains: Will this budget alleviate the perceived exploitation of the salaried class, or will it perpetuate their burden? Only time and the budget itself will reveal the answer. Stay tuned for further updates!
