The government has 1 lakh crore rupees, will you get income tax exemption or will it be focussed on employment?

Budget 2025:  The fiscal deficit coming down in the current financial year 2024-25 and less than projected capital expenditure, the government is considering providing relief of up to Rs one lakh crore to the people in the upcoming budget. This relief can be given in schemes related to exemption in income tax for employment. Finance Minister Nirmala Sitharaman will present the budget for the upcoming financial year 2025-26 on February 1.

Rs 11.11 lakh crore was allocated in the budget for capital expenditure in the current financial year, but only 46 per cent of this allocation has been spent from April to November this year. The fiscal deficit in the current fiscal could be lower than budget estimates due to lower capitalisation expenditure and increased revenue collection. The fiscal deficit in the budget was projected to be 4.9 per cent of GDP, but now the fiscal deficit is likely to be 4.7 per cent of GDP.

The government has Rs 1 lakh crore.

According to Sakshi Gupta, chief economist at HDFC Bank, the government’s financial margin is up to Rs one lakh crore due to a reduction in fiscal deficit as well as capital expenditure. He said the government may increase the limit of standardised deduction exemption under the new system of income tax. Under schemes like PM-Kisan, poor and MGNREGA related to farmers, allocation can also be increased so that consumption can be increased.

The increase in revenue collection in the current financial year will also help the government to increase the spending capacity of the people through tax exemptions and other schemes. Despite the disappointment on the disinvestment front for revenue collection, revenue collections are expected to generate a robust revenue of Rs 32 lakh crore in the current financial year. Tax collections in the current fiscal are estimated at 11.9 per cent of GDP, compared to 11.7 per cent in the previous fiscal year 2023-24.

Loans and interest payments have also decreased

According to economic experts, India’s debt ratio to GDP is also decreasing. During the Corona period, the government’s total debt reached 88.4 per cent of GDP, which has reached the level of 83 per cent in the last financial year. Despite the corona pandemic, the debt growth rate on the national government during the year 2015-23 is 2.1 percent, while the debt burden on the Chinese government has increased by nine percent in the last eight years.

The share of interest payments in revenue collection is also decreasing. During the Corona period, 41.6 per cent of revenue received in the financial year 2020-21 went to interest payments, which is estimated to be 37.2 per cent in the current financial year.