New Delhi: The financial blueprint for the fiscal year 2025-26 will soon be presented in Parliament. This will be Finance Minister Nirmala Sitharaman’s eighth consecutive budget, and there are expectations of six major announcements. These proposals are likely to be based on three key factors: public needs, BJP’s election promises, and media reports.
Key Possible Announcements:
1. Reduction in Fuel Prices:
According to sources, the budget may include a reduction in fuel prices. To provide relief to common citizens, the Finance Minister might reduce excise duty on petrol and diesel, making both fuels cheaper. Currently, the excise duty is ₹19.90 per liter on petrol and ₹15.80 per liter on diesel.
2. Lower Import Duties on Consumer Electronics:
The import duty on parts related to consumer electronics may be reduced. Currently, there is a 20% import duty on such parts. A reduction could lead to cheaper devices like mobile phones.
3. Increase in Import Duties on Gold and Silver:
Import duties on gold and silver might be increased. At present, the duty is 6%, which was reduced from 15% in the last budget. After this reduction, India’s annual gold imports surged by 104%, reaching ₹87,000 crore by August 2024. The government now aims to curb imports to reduce the trade deficit, which may result in higher gold and silver prices if duties are raised.
4. Income Tax Relief for Individuals:
The new tax regime may offer tax exemption for annual income up to ₹10 lakh. A 25% tax slab could be introduced for income between ₹15-20 lakh. Currently, incomes above ₹15 lakh are taxed at 30%. Additionally, the basic tax exemption limit may be increased from ₹3 lakh to ₹5 lakh.
5. Increase in PM-Kisan Scheme Assistance:
Farmers may receive good news under the PM-Kisan Samman Nidhi Scheme. The annual financial assistance could be doubled from ₹6,000 to ₹12,000 to provide greater support to the agricultural community.
6. Expansion of Ayushman Bharat and Other Schemes:
The Ayushman Bharat Scheme may be expanded to cover more people, including economically weaker sections and senior citizens above 70 years. The Atal Pension Yojana could see a doubling of pension amounts, possibly up to ₹10,000 per month.
Additional Possible Announcements:
Petrol & Diesel: Reduction in excise duty to lower fuel prices.
Consumer Electronics: Potential reduction in import duties to make products like mobile phones cheaper.
Gold & Silver: Possible increase in import duties, which may raise prices.
Income Tax: Tax exemption up to ₹10 lakh, with a new 25% tax slab for incomes between ₹15-20 lakh.
Affordable Housing: Price limit for affordable housing in metro cities may rise from ₹45 lakh to ₹70 lakh, with corresponding tax benefits. In other cities, the limit could increase to ₹50 lakh. Additionally, tax deductions on home loan interest rates may rise from ₹2 lakh to ₹5 lakh.
Medical Education: A roadmap to add 75,000 new seats in medical colleges over the next five years, with a possible 10% increase in the health budget.
Employment Opportunities: Introduction of an internship program for rural graduates under the National Employment Policy, consolidating various ministry schemes into one platform.
International Job Mobility: Establishment of an International Mobility Authority to assist with job placements abroad.
Medical Equipment: Reduction in import duties on essential medical equipment like MRI machines, currently taxed between 7.5% and 10%.
The budget presentation is highly anticipated as it will shape economic policies ahead of the upcoming general elections.
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