PATH OF PRUDENCE, NOT POPULISM

WHEN Finance Minister Nirmala Sitharaman on Tuesday rose to present Budget and spelled out the key themes employment, skilling, MSMEs, and the middle class-there was high hope that she would open the purse strings and announce some generous measures for the middle class. It was not to be.

- DIPAK MONDAL

After making the early grand gestures, the finance minister stopped short of providing any big relief to the middle class. The much-expected income tax sops ended up being too tame to merit much attention. Nonetheless, those in the new tax regime did get some reasons to cheer. The FM increased the standard deduction from ₹50,000 to ₹75,000. The tax structure under the new regime was also tweaked a bit. The government continues to load the tax benefits in favour of the new tax regime, which according to the finance minister is opted by two-thirds of the individual taxpayers. The sops would help taxpayers save up to ₹17,500 every year.