For the upcoming budget, 2025, Prime Minister Narendra Modi convened a consultation with prominent economists to discuss key economic strategies.
The main motto of the meeting was centred around crucial topics such as lowering income tax slab rates, streamlining customs tariffs, and introducing initiatives to boost exports.
Sources from the Bureau revealed that the Prime Minister directed to focus on job creation as a central pillar of government policy. He also stressed the importance of improving data accuracy to better the policy formulations and implementation.
Finance Minister Nirmala Sitharaman’s Union Budget for 2024-25 brought significant changes to the Income Tax Act. Notable reforms included relaxations in taxes for incomes up to ₹10 lakh, raising the standard deduction for salaried persons and pensioners from ₹50,000 to ₹75,000, and increasing the deduction limit for family pensioners from ₹15,000 to ₹25,000.
Prominent industry associations, including 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), submitted their recommendations during the pre-budget consultations. These proposals emphasized tax reforms, restructuring of GST, providing direct tax relief, and simplifying customs procedures.
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Finance Minister Sitharaman also held consultations in Jaisalmer, Rajasthan, with Finance Ministers from States and Union Territories with legislatures. She announced an allocation from the Center of ₹30,000 crore in ‘Untied Funds’ under the SASCI 2024-25 initiative.
These untied funds enable States to allocate resources as per their priorities. The sum primarily focused on increasing expenditure in the development of capital assets.
