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NDA's 3.0 First Budget Expectations: A Hopeful Feast for the Common Man

 


Imagine a bustling Indian household, where the aroma of spices fills the air and the chatter of family members echoes through the rooms. As they gather around the dining table, eagerly awaiting their meal, a similar sense of anticipation builds across the nation. India's citizens, particularly those from poor and middle-class backgrounds, are hungry for change, their plates empty and ready to be filled with the promises of NDA 3.0's first budget. But will this meal satisfy their appetites, or leave them still craving more?

Let's dive into the main course: Tax Expectations vs. Reality.

  1. The 80C Conundrum

Here's a tidbit most websites won't tell you: If the 80C limit had kept pace with inflation since its last revision in 2014, it would be around ₹2.4 lakh today, not the current ₹1.5 lakh. That's a 60% increase!

Reality Check: While an increase is desperately needed, the government might be hesitant due to potential revenue loss. A more realistic expectation might be a bump to ₹2 lakh, which could still provide significant relief to middle-class taxpayers.

  1. The New Tax Regime's Makeover

Did you know that despite being introduced in 2020, less than 25% of taxpayers have opted for the new tax regime? It's like a restaurant dish that looks good on the menu but doesn't quite hit the spot.

Expectation: Incorporating some investment-linked deductions into the new regime could make it more palatable. Even a partial 80C benefit of, say, ₹75,000 could be a game-changer.

  1. Healthcare Costs: The Silent Budget Killer

Here's a shocking stat: Out-of-pocket health expenses push 55 million Indians into poverty each year. The current 80D limit of ₹25,000 (₹50,000 for senior citizens) barely scratches the surface.

Proposal: Increase the 80D limit to at least ₹50,000 for individuals and ₹1 lakh for senior citizens. This could provide a much-needed cushion for middle-class families grappling with rising healthcare costs.

  1. Inclusive Growth: Beyond Tax Breaks

While tax relief is crucial, true inclusive growth requires more. Here's an idea rarely discussed: Implementing a progressive corporate tax structure based on market share. This could help curb monopolistic practices and create a more level playing field for smaller businesses.

Consider this: The top 10% of Indian firms account for over 75% of total profits in the organized sector. A tiered tax system could encourage competition and innovation while generating additional revenue for social programs.

  1. Equal Opportunity: Education and Skill Development

Did you know that only 5% of the Indian workforce has undergone formal skill training, compared to 96% in South Korea? To build a nation of equal opportunity, we need to invest heavily in education and skill development.

Proposal: Introduce a "Skill India Credit" – a tax credit for individuals who invest in certified skill development programs. This could incentivize continuous learning and help bridge the skill gap.

  1. Removing Corporate Monopoly: Stricter Regulations

Here's a little-known fact: India's competition law hasn't seen a major overhaul since 2002. In a rapidly evolving digital economy, this is akin to using a landline in the age of smartphones.

Suggestion: Introduce stringent regulations on data monopolies and update merger control thresholds to reflect the value of data and network effects in digital markets.

Conclusion:

As we clear the table and digest the possibilities of NDA 3.0's first budget, it's clear that the expectations are high, especially for the poor and middle-class taxpayers. While tax relief is crucial, the true test of this budget will be its ability to foster inclusive growth and equal opportunities for all.

The government has a chance to serve up a truly satisfying meal – one that nourishes not just our wallets, but the very fabric of our society. By balancing immediate relief with long-term structural reforms, we can build a stronger, more equitable India.

As we look forward to the budget announcement, let's remember that we all have a role to play in shaping our nation's future. The question is, are we ready to move beyond personal gains and contribute to a vision of India where everyone gets a fair seat at the table?


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