On Friday, Nirmala Sitharaman, the Union Finance Minister praised the leadership of Prime Minister Narendra Modi and said that the government has offered multiple tax benefits to middle-class people. The minister mentioned that the government provides income tax exemption for those earnings up to ₹7.27 lakh per annum under the new tax regime.
Nirmala Sitharaman also addressed skepticism raised in several quarters when the government decided to provide income tax exemption for those earning up to ₹7 lakh in the Union Budget for 2023-24.
The Finance minister said, “So, we sat as a team and went into the details (to find out) at what stage you pay tax for every additional Re 1 you earn… (for instance) for ₹7.27 lakh, you don’t pay any tax now. It is only at ₹27,000 that the break-even comes. After that you start paying tax.” She further added, “You have a standard deduction of ₹50,000 also. Under the new scheme, the grievance was that there was no standard deduction. It is given now. We have brought in the simplicity in the paying rate and the compliance side.”
Nirmala Sitharaman also mentioned the increased budget of the Micro Small and Medium Enterprises (MSME) sector while delving into the achievements of the Union Government, which jumped to ₹22,138 crore for 2023-24 compared to ₹3,185 crore in 2013-14.
According to Nirmala Sitharaman, the ‘Public Procurement Policy for Micro and Small Enterprises’ initiative has resulted in 33 percent of the overall procurement made by 158 Central Public Sector Enterprises coming from MSMEs. This achievement represents the highest proportion to date.
The Finance minister said that the ONDC (Open Network for Digital Commerce) has allowed the MSME sector to reap the benefits of a large consumer base and the world celebrates India’s public platforms which are comparable to the ‘Amazons of the world’. She also mentioned the improved ranking of India in the Ease of Doing Business Index which came from 142 in 2014 to 63 in 2019.
She noted,”We have reduced unnecessary compliance burden by repealing more than 1,500 archaic laws and nearly 39,000 compliances. Decriminalization of the Companies Act has happened,”.
