Union Budget 2023: The first woman finance minister of India, Nirmala Sitharaman, is scheduled to present Union Budget 2023 on February 1. Middle-class taxpayers have major expectations from the budget, as they anticipate relief through some changes in the tax deductions. Many experts have predicted that the FM many present a revised tax slab, especially for those who are under the higher tax slab. Another aspect that holds significance for the middle class is creation of jobs. During the pandemic, many people lost their jobs, failing to make the ends meet.
Tax deduction
The middle class, defined as those earning between Rs 2.5 to 20 lakh per annum, needs the government to provide tax relief. To provide households more disposable income to spend on necessities and put money down for the future, this could involve raising the income tax threshold, which is now set at Rs. 2.5 lakh for individuals.
Creation of jobs
Another major expectation from the FM this year will be creation of jobs for middle class. Due to significant employment losses brought on by the epidemic, many middle-class families are now struggling to make ends meet. To give the middle class opportunities to earn a living, the government must take action to create jobs in crucial industries like manufacturing, technology, and infrastructure.
Another major issue that has remained a common concern among the middle class is inflation. Many would the FM to announce measures to keep inflation under control. Since the beginning of 2022, inflation has been averaging 7%. The RBI projects that the overall retail inflation rate will stay high in the second half of 2022–2023, hovering around 6%.
What FM Sitharaman said on budget 2023
Two weeks ahead of presenting the budget, Finance Minister Nirmala SItharaman said that the Central government will continue to work for the middle class. Adding that she belongs to middle class, the FM said she understands the pressure they face. She said that no new tax has been placed in the budget so far.
