What professionals can expect from the Budget 2025?
The Union Budget for 2024-25 will be presented by Finance Minister Nirmala Sitharaman on February 1, marking the first full budget under the Modi 3.0 government. Let’s understand what professionals can expect from this budget.
Review of Income Tax Slabs: One of the primary expectations for professionals from the budget is a review of the income tax slab considering increased revenue receipts to provide relief to tax-payers. This move can increase consumer spending and boost economic growth. A more equitable tax structure for professionals is expected with potential reductions in tax rates or increases in tax exemptions.
Increase allocation to health care and education: Strengthening these areas is crucial for economic development, as a healthy and educated population is more productive and contributes to the country's growth. Professionals can expect announcements on increased funding for healthcare infrastructure, education initiatives, and skill development programs.
Reduce subsidies and freebies: To optimize revenue expenditure, the government is likely to reduce subsidies and freebies. This move is expected to streamline the budget and allocate resources more efficiently. While this may lead to some short-term adjustments, it will ultimately contribute to a more sustainable economic model.
Expansion of PLI (Performance Linked Incentive) schemes: The government is expected to expand the PLI schemes to accelerate domestic manufacturing and export for sunrise sectors because we want our exports to go up, we want our imports to come down, and we want the government to spend on sectors, which will contribute to employment at a large scale. So these sectors need to be incentivized.
Enhanced Investments in Renewable Energy and Green Bonds: The budget is likely to focus on renewable energy. The government can come up with green bonds, which us investors can invest in and can earn some return. Instead of any normal bonds, we invest in green bonds and that green bonds invest in renewable energy projects. The largest deficit is happening because of fuel consumption, we are importers of fuel. Our import bills can come down if we can really make a very big shift in renewable energy. It can boost our GDP and can reduce our revenue expenditure also to a great extent.
Strengthening MSMEs: The government is expected to strengthen MSMEs to address unemployment concerns. By incentivizing MSMEs with special tax rates, subsidized loans, and a supportive ecosystem, the government can create an environment that fosters entrepreneurship and job creation. This move is critical, as MSMEs are the backbone of the Indian economy, and their growth will have a positive impact on employment and GDP.
Assessment of Agricultural Taxation: The government should introduce a new tax regime for farmers to bring a more equitable tax structure.
Conclusion:
The Budget 2025 is expected to be a game-changer for professionals. With a focus on income tax slabs, agricultural taxation, healthcare and education, subsidies, PLI schemes, renewable energy, and MSMEs, the government is likely to announce a series of measures that will stimulate economic growth, create employment opportunities, and promote sustainability.
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