Sitharaman may go in for a populist budget

Union Finance Minister Nirmala Sitharaman will present the last full budget of the second term of the Narendra Modi government on February 1.

With Lok Sabha elections due next year, it is projected that election glimpse will be apparent in the ensuing budget.

Many opposition leaders are expected to make the budget an issue in the elections. Looking at the preparations and record of the government regarding the budget, it is said that the Modi government can majorly increase amounts allocated to welfare schemes.

The NDA government, which has been subject to constant attacks from the opposition parties on the issue of unemployment, will be focusing on increasing employment opportunities in its upcoming budget. Emphasis will be on increasing jobs in urban and rural areas. For this, along with basic infrastructure, a special announcement can be made for small and medium industries.

The funds allocated for Mahatma Gandhi National Rural Employment Guarantee Act, the biggest source of employment in rural areas, will also be increased this year. Along with farming, special announcements for agriculture and other areas related to it are expected. The Centre will increase its expenditure to ensure that along with the increase in employment in rural areas, the income of the people also increases, which will boost the economy. It can make important announcements on relief to people from inflation. Giving great relief to the taxpayers, along with announcing a reduction in income tax rates, the government can also make a big announcement on the GST front.

In view of the upcoming Lok Sabha elections, the government might provide some relief to the middle class, employed income tax payers and government employees as well as small and medium businessmen. It may be full of populist schemes and promises to woo voters.