Pre-Budget Discussions with PM: Economists recommends for Income Tax Cut Rate
The Prime Minister emphasized employment generation as a central pillar of government policy
In a strategic pre-budget consultation, Prime Minister Narendra Modi met with leading economists to discuss the upcoming Budget 2025. The discussions focused on critical areas such as reducing income tax rates, rationalizing customs tariffs, and implementing export-support measures. According to sources from the Bureau, the Prime Minister emphasized employment generation as...
In a strategic pre-budget consultation, Prime Minister Narendra Modi met with leading economists to discuss the upcoming Budget 2025.
The discussions focused on critical areas such as reducing income tax rates, rationalizing customs tariffs, and implementing export-support measures.
According to sources from the Bureau, the Prime Minister emphasized employment generation as a central pillar of government policy. He also highlighted the need for improved data quality to enhance policy formulation and implementation. "He heard everyone very patiently," an economist who attended the meeting told The Economic Times.
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The 2024-25 Union Budget, presented by Finance Minister Nirmala Sitharaman, introduced notable changes to the income tax act. The key reforms included relaxing income tax slabs for earnings up to ₹10 lakh, increasing the standard deduction for salaried individuals and pensioners from ₹50,000 to ₹75,000, and enhancing the deduction for family pensioners from ₹15,000 to ₹25,000.
During the pre-budget consultations, industry bodies such as the Confederation of Indian Industry (CII), the Federation of Indian Chambers of Commerce and Industry (FICCI), and the PHD Chamber of Commerce and Industry (PHDCCI) presented their proposals. These recommendations focused on tax reforms, GST restructuring, direct tax reliefs, and customs simplifications.
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The Finance Minister recently presided over pre-budget consultations with Finance Ministers from States and Union Territories with legislatures in Jaisalmer, Rajasthan. During the discussions, Nirmala Sitharaman announced the Centre's allocation of approximately ₹30,000 crore as 'Untied Funds' under SASCI 2024-25.
These funds provide State Governments with the flexibility to channel resources into sectors of their choice, with a focus on enhancing expenditure for the creation of capital assets.
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