INSUBCONTINENT EXCLUSIVE:
To many, tax breaks are a more effective measure than welfare schemes for increasing consumption by putting more disposable income in the
Interim one in February this year
That is more than anyone else has done.
This is indeed continuity
But there is continuity in more ways than one.
First, like every other Budget, Business Standard will bring you coverage that will keep you
Budget Watch is a special series we are starting today to enhance that experience for you.
Secondly, as in many past Budgets, the FM will
have to perform the old balancing act in the forthcoming Budget, too, because the battle between the compulsions of welfare and fiscal
consolidation continues unabated.
Coming to the aid of the finance minister will be the robust GDP
It surpassed expectations by growing at 7.8 per cent in the January-March quarter
For the entire 2023-24 financial year, GDP growth has been revised upwards to 8.2 per cent
cushion.
There is also the buzz that the finance minister could consider tax breaks for the salaried class, especially those at the bottom
To many, tax breaks are a more effective measure than welfare schemes for increasing consumption by putting more disposable income in the
hands of people.
All of this has to be seen in the political context.
The National Democratic Alliance has assumed power at the Centre for
a third consecutive term but with a reduced majority in the Lok Sabha
After a gap of 10 years, we have a coalition government in place
In a coalition, concerns and considerations of allies assume greater thrust
But there is also the fact that the main opposition alliance, which made immense gains in this year's elections, promised a lot of welfare
to the electorate.
Apart from that, the NDA government has been emphasising government-led capital expenditure anyway.
How much will that
What we do know is that the Budget-making exercise has started in earnest
remember that economic policymaking is not confined to this annual exercise
such as taxing foreign airlines, which has elicited an open threat by IATA to reduce services connecting India.
But this is Budget Watch
And we will bring you more on the Budget tomorrow.First Published: Jun 18 2024 | 9:11 AMIST
