Budget 2023 may contain people-centric proposals in run-up to elections: Sources

As the Budget is just round the corner, the middle class is hoping for some relief from Sitharaman after being hit by the rising cost of living and worsening job market. (Representative image)

Union Finance Minister Nirmala Sitharaman has said that Budget 2023-24, the last full budget of the government’s current tenure before it goes to general elections in 2024, will “set the template” for the next 25 years.

In this context, sources have informed CNBC-TV18 that the next fiscal's Budget, slated to be presented by Sitharaman in the Parliament on February 1, may contain people-centric proposals.

In terms of small savings schemes, the Centre is considering a wider base of Sukanya Samriddhi Scheme via a one-time window for enrollment, which may cover those who missed out earlier, the sources told CNBC-TV18. The scheme window is likely to also widen eligibility for fresh registrations.

ALSO READ: Five major announcements expected from Budget 2023

Further, under the category of India's health ecosystem, the government is mulling provisions for India's middle class. According to the sources, special health insurance for those with neither Ayushman Bharat Health insurance nor private health policies will be considered. The special health insurance scheme in the Budget may be implemented via PPP (Public-Private Partnership) mode, the sources added.

Moreover, the upcoming Budget may also hike exemption limit for senior citizens' international income from Rs 50,000 to Rs 1 lakh.

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As the Budget is just round the corner, the middle class is hoping for some relief from Sitharaman after being hit by the rising cost of living and worsening job market.

There is a glimmer of hope for the middle class as the finance minister recently indicated that she understands the pressures of the middle class as she too belongs to the same strata.

Among several expectations from every sector and citizen in the country, the anticipation for the government to lower direct income tax rates is one of the primary ones. As per reports, the government is expected to reduce the 30 percent and 25 percent tax rates under the new regime.

Other major expectations include increasing the exemption limit allowed for long-term capital gains on equity investments, an increase in the number of Vande Bharat trains, and more.