IANS | 26 Jun, 2024
The Central government is likely to increase its welfare spending on
social schemes by Rs 50,000 crore in the upcoming budget, due to robust tax
collection and record dividend from the Reserve Bank of India (RBI), according
to the global brokerage Jefferies.
As per the report, the Central government will not face any economic
challenges in carrying forward capital expenditure and development works in the
coming budget. The government enjoys a financial cushion of approx 40 to 50
basis points.
Jefferies said that the budget for FY25 will have a positive impact on
affordable housing, consumer companies, price-sensitive industries, and capex
companies.
Increasing income tax collection allows the government to give tax
exemptions. This may provide relief to taxpayers. An increase in consumer
spending will also support economic growth.
Jefferies suggested that India could bring back the Credit Linked
Subsidy Scheme (CLSS) for urban housing.
Jefferies believes that the Budget for capital expenditure could be
increased by Rs 30,000 crore and government welfare schemes spending could be
increased by Rs 50,000 crore in the upcoming budget.
--IANS