Prime Minister Narendra Modi had actively wooed India’s growing middle class, which in turn had reciprocated the feelings, till the 2024 Lok Sabha results showed people expected more from the government.
ALSO READ: Union Budget 2024 Live: Expectations high among investors, taxpayers ahead of D-Day
The Modi 3.0 budget on July 23 comes in the backdrop of such expectations. Will the Modi government open purse strings to make the aspirational class happy which has been facing the brunt of inflation, unemployment, and low incomes?
It makes a lot of political sense to support the middle class by adding in their incomes, and saving. Putting more money in their pockets will not only boost consumption and growth but also help stem the slide in support for the ruling dispensation. Even many within the party believe that disenchantment may spiral if the government is not seen as sensitive to the ground realities. This is why when the Opposition parties promised more money in pockets, they gained in vote share and even seats.
Finance Minister Nirmala Sitharaman can win accolades for the government if the salaried and ordinary people are given substantial relief in taxes. The overhaul of tax slabs, aimed at reducing the tax burden on the middle-income group, can bring cheers for the government. “While the budget is expected to focus on growth, it will give impetus to consumption,” an informed source had said.
Another challenge that has come before the central government is the demand for the restoration of the old pension scheme. The government may provide for making the existing National Pension System (NPS) more attractive so that the subscribers are in better control of their invested money.
The third aspect that the budget is expected to address is the construction of affordable housing. In fact, the first cabinet decision of the Modi government was to build three crore more affordable houses.
The fourth area where the upcoming budget can provide relief to people is in terms of health facilities and insurance. The BJP had promised to bring 70+ population under the benefit of Ayushman Bharat health insurance. Sitharaman may make an announcement regarding that promise and could even expand the coverage area of insurance to include more sections of society.
The fifth area where the government ought to make a strong pitch is jobs creation. This could come through SOPs for the startups, capex on infrastructure and creation of new government sector institutions be its hospitals, educational bodies or research institutions.
The Modi3.0 had started on a turbulent note as news of paper leaks, terror attacks, and accidents have been making headlines. With the budget, the government will have a chance to give the upset middle class some happy news.
