Budget 2024 Updates | Government To Improve Spending Of Middle Class In Order To Boost Country's GDP

Welcome back. You're watching CNN News 18. There's breaking news that's now coming in, in the run up to the budget session of the Parliament which begins next week. Sources within the finance ministry are now telling our channel that there is the tax exemption that could be expected. There is some relief for the middle class that could be seen possibly for those within the salary slab of 10,00,000 a year. This is what we're now learning that there seems to be some move to bring in relief by the central government for at least one section of the middle class. Pallavi, my colleague now joining us, getting us more details. Pallavi, what else have you gathered from your sources? So you know, you saw that in the last budget, which is the interim budget, there were no changes which were made as far as income tax slap is concerned. But this time around what we are learning is that there is likely to be some kind of a relief which is going to be offered to the middle class. So at least the yearly salary which goes up to 10,00,000, they are likely to get an income tax relief. And the second important thing of course what we are being told is that those who opted for the new tax regime, they are the likely to be the benefits. You see the government has been making it very clear we want more and more people to offer the new tax regime in sharp contrast to the old one. What the government hopes is that this is going to give a surge to savings and as well as consumption, which is very important in the cycle pattern of economic growth, right? So there's some relief that could be expected for the middle class. The decision could come out when the budget session convenes next week. For the moment, Pallavi, thank you so much for getting us the latest. Shifting our focus to the state of Karnataka with a controversy over the recent fuel hike had barely settled and now the state government has decided to hike water tax.