Finance Minister Nirmala Sitharaman is set to present the Union Budget on February 1st. This budget is highly anticipated as it's expected to bring significant relief to the middle class, farmers, and the common man, while the primary focus of the government this year appears to be boosting domestic consumption by putting more disposable income into the hands of citizens.
Income Tax Relief: Earnings up to 13 Lakh May Become Tax-Free
The Confederation of Indian Industry (CII) has suggested that increasing the purchasing power of the middle class is essential for economic growth. By providing more tax benefits, the government aims to encourage more people to opt for the New Tax Regime while stimulating market demand through increased consumer spending.
The biggest highlight for salaried individuals could be the revision of the New Tax Regime. There are strong indications that the Standard Deduction might be increased from the current Rs 75,000 to Rs 1 lakh. This move would effectively make annual income up to Rs 13 lakh. Tax-free for salaried employees, up from the current limit of Rs 12. 75 lakh.
PM Kisan Nidhi: Annual Amount May Increase by 50%
For the agricultural sector, the government is likely to increase the PM-Kisan Samman Nidhi amount from Rs 6,000 to Rs 9,000 per year. This scheme has not seen a revision since its inception in 2019. Given the rising costs of farming inputs and inflation, farmer organizations have been demanding a hike for a long time.
A parliamentary standing committee recently recommended doubling the amount to Rs 12,000, but a middle-ground hike to Rs 9,000 seems most probable. This would benefit approximately 11 crore farmer families across India, helping them cover small agricultural expenses without falling into debt traps.
Railways: 300+ New Amrit Bharat and Vande Bharat Trains
To tackle the persistent issue of long waiting lists, the Ministry of Railways is expected to announce over 300 new trains, including the high-speed Vande Bharat and the common man's Amrit Bharat expresses. The government's vision is to achieve 'Zero Waiting List' by 2030. This expansion will be supported by a record budgetary allocation. For rail infrastructure, focusing on track doubling and safety measures.
PM Surya Ghar Yojana: Higher Subsidies for Solar Energy
The budget might also see an increase in subsidies for the PM Surya Ghar Muft Bijli Yojana, while for solar systems up to 2 kW, the subsidy could be raised from Rs 30,000 per kW to Rs 40,000 per kW. This means a family installing a 2 kW system could save an additional Rs 20,000 in upfront costs. This initiative aligns with India's goal to reach 1 crore households with solar power by 2027.
Ayushman Bharat: Expanding Coverage to Seniors Aged 60+
In a major push for universal healthcare, the government is considering lowering the age limit for the Ayushman Bharat (PM-JAY) scheme from 70 to 60 years. On top of that, the annual free treatment limit of Rs 5 lakh might be increased to cover high-cost surgeries like oncology and cardiology, while with over 80% of India's elderly lacking health insurance, this move would provide a critical safety net for millions of senior citizens.