With regard to the Union Budget 2023-24, it is expected that the government will focus on infrastructure development and announce some relief in the form of tax benefits for the common people. Everyone’s eyes are fixed on what kind of plan the government makes regarding its expenditure. Along with this, what steps does the government take to control fiscal deficit and inflation. Here we are going to tell you about those announcements which the general public is expecting in the upcoming budget.

reduction in fiscal deficit

Goldman Sachs Group has said that India may cut its fiscal deficit target by 50 basis points for the next fiscal year starting April 1, 2023. Several Goldman economists, including Andrew Tilton and Santanu Sengupta, in a report It is written that India will maintain its deficit up to 5.9 percent of the Gross Domestic Product (GDP) in the new financial year. Economists have said that the government’s focus in the upcoming budget is likely to focus on rural employment and housing.

Expectation of change in tax slab

There is an income exemption limit of up to Rs 2.5 lakh in the current tax slab for any individual taxpayers. In which there has been no change since 2014-15. This means that persons earning less than this limit are not required to file income tax returns. However, income from 2.5 to 5 lakhs is taxed at 5% and income from 5 to 7.5 lakhs at 20%. Now the income tax exemption limit is expected to be increased to Rs 5 lakh in the upcoming budget.

Expenditure will increase on infrastructure and social schemes

The expenditure on infrastructure is also expected to increase in this year’s budget from the Central Government. Along with this, big infrastructure projects are likely to be launched in the coming years. Since this will be the budget ahead of the 2024 general elections, it is expected that the government may allocate more funds for infrastructure projects and social welfare schemes.

Change in standard deduction limit

Under the Income Tax Act, taxpayers get an exemption on the Standard Deduction Limit of Rs 50,000. Now taxpayers also hope that the government can increase the standard deduction limit from Rs 50,000 to Rs 75,000. At the same time, according to experts, keeping in mind the rising cost of living and rising inflation, the standard deduction limit should be doubled.

Deduction limit expected to increase on home loan

As per section 24(b) of the Income Tax Act, taxpayers can avail tax deduction on the interest paid on home loan. However, the limit for such deduction is Rs 2 lakh per annum. There has been no change in this since the financial year 2014-15. Now there is a demand to increase this limit from Rs 2 lakh to Rs 5 lakh annually. At the same time, the tax deduction limit is likely to increase with the increase in the value of properties over the years.