Budget 2023 Expectations Highlights (Jan 27): Will Sitharaman make middle-class ‘atmanirbhar’ with new tax reliefs?

Budget expectations Live: ‘Some factors may lead FM to simplify current tax slabs’

Master Capital Services Director Gurmeet Singh Chawla feels that the Finance Minister may tweak the current tax slabs. From rigid inflation to volatile global sentiments, the aam aadmi has suffered a lot in recent times. “For the upcoming union budget of FY2023-24, we expect a change in the tax slabs. Considering the conflicting macroeconomic conditions followed by a bleak geopolitical scenario, last year has clearly taken a toll on the pockets of middle-class tax-payers. Not only did inflation cause a drastic rise in the incurred expenses but also forced the RBI to increase the interest rates. All these factors might lead the FM to simplify the current tax slabs and provide relief to salaried employees to some extent,” Chawla said.

“The growth-inflation dynamics will continue to evolve, there will be expectations that the government takes steps to strike the right balance in managing the two objectives. The budget is expected to spread its priority towards various sectors be it employment opportunities, equitable distribution of national incomes, enhance social protection, speed up the infrastructure etc. The rural development is one of the key areas which will be taken into consideration and the budget will focus on providing increased access to social security, health care, infrastructure & technology along with other benefits of different groups. It is most likely expected for the budget to cater to healthcare majorly this year. GST reduction on life saving drugs, health insurance and hospitals will most likely happen. There is an increased focus on prioritising health & sanitation this year,” he further added.


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