In less than three weeks, on 1st February 2023, Mrs. Nirmala Sitharaman, finance ministry of India will present her fifth budget. This will be the last full budget of the second term of the Narendra Modi government, and due to this reason, the budget has become very important. The re-election of the Narendra Modi government with a full majority depends on it. How the budget balances demands of different voters classes will increase or decrease seat count in the next general election scheduled to be conducted in 2024. We analyzed some past budgets and the governance philosophy of the current government, and come up with a list of key budget predictions:
First the low-hanging fruit, changes in income tax:
These changes will not affect the government budget much as they are already getting record income tax. They will do this to say we have done a lot of things for the income taxpayers, but in reality inflation-adjusted terms, it is nothing.
This government has repeatedly said, it wants to double farmers' income. The most effective way to achieve this objective is PM Kisan Samman Nidhi as it does not suffer from regional distortion like procurement by FCI at MSP, we expect the current amount of rupees 6000 will increase. We believe one of the following things will happen in PM Kisan: