Interim Budget may see measures to boost consumption demand, push agri economy

Finance Minister Nirmala Sitharaman is likely to step up efforts to boost consumption and rural economy while keeping inflation under check when she presents her sixth straight Budget on February 1

Finance Minister Nirmala Sitharaman is likely to step up efforts to boost consumption and rural economy while keeping inflation under check when she presents her sixth straight Budget on February 1.

Experts said one way to boost consumption is to put more money in the hands of people, and one of the possible ways of doing it is by reducing the tax burden through tinkering with tax slabs or increasing the standard deduction.

Another proposal is related to increasing the funds under the rural employment guarantee scheme MGNREGA and higher payout for farmers.

Women and marginalised communities may get additional sops as part of Ms. Sitharaman's effort to boost consumption ahead of the general elections, experts said.

Usually, interim Budgets, which are presented in the Lok Sabha ahead of the general elections, do not contain fresh tax proposals or new schemes.

In the interim Budget, the government will seek permission from Parliament to meet its expenses for 4 months of the 2024-25 fiscal.

It may contain proposals to address immediate economic problems, which cannot wait 4 months when the full budget is presented after the formation of the new government.