New Delhi

The Narendra Modi government will be presenting its final budget of its second tenure on Thursday (February 1). Ahead of the budget, the middle class of the country is once again looking towards Union Finance Minister Nirmala Sitharaman for announcements that might ease the burden on their pockets.

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WION takes a quick look at some of the announcements that the middle class can expect from the budget.  

Making taxation regime middle-class friendly

Although the tax regime is unlikely to be altered, the middle class would be hoping that the government shows some leniency. Ever since the Modi administration changed the taxation scheme to push more taxpayers into the new regime, there has been a sense of discontentment. 

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The majority views the new tax regime as disincentivising savings as those investments available in the old tax regime do not apply to those who opted for the new tax regime. Since the middle class is big on savings, government could raise the basic exemption limit by at least Rs 50,000 under both regimes. 

Moreover, if the restriction pertaining to the mandatory requirement of forgoing of house rent allowance (HRA) deduction by salaried individuals is eased, it could pivot more taxpayers to the new regime. 

Also read | Budget 2024: Will there be Income Tax reforms?

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Temper inflation

The United Progressive Alliance (UPA) went bust in the 2014 Lok Sabha elections due to sky-high inflation rates that pushed the middle class to the edge. Hence, the interim budget assumes greater importance. The budget should focus on mitigating food supply volatility and reduce India's inflation. 

More employment

Often seen as a catalyst for change, the middle class will hope that Sitharaman's budget delivers more employment opportunities. With elections in focus, there is a sense of anticipation that the government will announce measures that create more employment avenues for the youth. 

Watch | Budget 2024: India's economic health report

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Housing

Affordable housing has long been the dream of the middle class. However, the dream has taken a slight hit after the Reserve Bank of India (RBI) [India's central bank] pushed forward the loan rates to tame inflation.

If the interim budget can manage to trim the interest rates on home loans, it would be a massive statement and further strengthen the BJP's hold on its most efficient vote bank. Apart from low-interest rates, subsidies in the housing sector may also go a long way. 

(With inputs from agencies)