Budget 2022: Here's what the middle class expects from FM Sitharaman

The Indian middle class was harshly hit due to the coronavirus pandemic. In order to emerge from this crisis, the middle class has a voluminous list of expectations from the upcoming Budget 2022-23, which is scheduled to be tabled by the Finance Minister Nirmala Sitharaman on February 1. From income tax relief to exempting provident fund investments from taxation, here are the top five expectations of the Indian middle class from the upcoming Budget 2022-23:
 
Income tax relief
 
Due to the economic instability seen in the last two years, the middle class and working population of India expects some relief from the government vis-à-vis the standard deduction in income tax. They expect the government to raise this limit from Rs 50,000 to Rs 1 lakh.
 
“The previous 2 years have been challenging for everyone, especially the working population there was an increased strain on income and risk to health. The increased healthcare costs during the pandemic have given many of us a setback. Hence, I think some anticipation on the 2022 budget with regards to income tax relief in the areas of the standard deduction to be increased from Rs 50,000 to Rs. 1 lakh”, says Akshay Mehrotra, CEO and Co-Founder of the instant personal loan app EarlySalary.
 
Reduce petrol, diesel prices
 
According to the data from MyGov website, users have urged the government to reduce petrol and diesel prices by way of slashing taxation. Some also suggested that the government should consider bringing petrol and diesel under the ambit of goods and services tax (GST). A user named R Manoharan wrote, “Petrol and diesel prices are to be under GST control. GST share to the state governments should be [given] then and there.”
 
Exempt Provident Fund, Voluntary Provident Fund investments from taxation
 
According to the users’ suggestions on the MyGov website, the government should consider keeping Provident Fund and Voluntary Provident Fund investments out of the taxation purview.
 
Make education accessible for all
 
People have also urged the government to make education accessible for all by removing education cess. This is in line with the Confederation of Indian Industry’s expectation of an increased public expenditure allocation on education from the upcoming Union Budget 2022-23. The industry body expects the government to increase the allocation from 4.43 per cent of GDP to 6 per cent of GDP.
 
Besides this, CII also urged the government to provide special budgets to schools for digital infrastructure and funds for reskilling or upskilling school teachers to enable them to adapt to the new teaching methodologies.
 
Raise thresholds for pension funds, medical expenses
 
“With no social security mechanism for the masses, inadequate public health as well education infrastructure, middle-class taxpayers expect government to increase thresholds for contribution to pension funds, relief for medical expenses, and separate deduction for tuition fees paid to educational institutions,” Kumarmanglam Vijay, Partner, J Sagar Associates (JSA) said.
 
Also read: Union Budget 2022: Govt receives more than 3000 suggestions from people

Also read: Budget 2022: Consumer durable makers seek lower taxation, better incentives 

Also read: Budget 2022: Here’s what India’s salaried class expects from Nirmala Sitharaman