GoI may announce tax relief for women in Budget 2024-25

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Economists believe that the government will avoid populist announcements in the upcoming interim budget on February 1 which will be announced a few months before the general elections. The Budget 2024-25 will instead focus on fiscal prudence. However, some believe women will receive some separate tax relief measures. The GoI will also make the New Pension Scheme (NPS) attractive amidst demands that the old pension scheme must be implemented. There is also a possibility that government might provide some relief to middle class by increasing the standard deduction in the election year.

Finance Minister Nirmala Sitharaman will present the interim budget for 2024-25 in Parliament on February 1. This is her sixth budget. Dr. NR Bhanumurthy, a renowned economist and Vice-Chancellor of the Dr. BR Ambedkar School of Economics University in Bengaluru, said that given the government’s past track record, it is unlikely that the upcoming interim budget will be populist. This is because Prime Minister has already announced schemes like the Pradhan Mantri Garib Kalyan Anna Yojana, which are likely to continue in the coming years.

He said that although there are expectations that the government may make some announcements in the budget to make the pension scheme (NPS) attractive. This can happen in view of the political issue of the old pension scheme. other states including Punjab and Rajasthan have already implemented the old pension scheme. Seeing this, central government employees have also demanded that the old pension scheme be implemented. Seeing this, the government formed a committee headed by Finance Secretary TV Somanathan in April last year to review the National Pension System (NPS).