Budget 2025: Ahead of the proposed budget of the central government, economists said that the government can consider bringing a central scheme of cash transfer to help women in the budget. Also, to boost the economy and increase consumption, whether it is direct tax or indirect tax, tax cuts can be considered. Economists also say that a new subsidy system is needed for sectors like agriculture and coastal activities affected by energy transition and climate change, which can be focused on in the budget.

Nirmala Sitharaman will present the 8th budget.

Finance Minister Nirmala Sitharaman will present the budget for the financial year 2025-26 on February 1. This will be her eighth consecutive budget and the second full budget of the third term of the National Democratic Alliance (NDA) government led by Prime Minister Narendra Modi. When asked about the expectations regarding social security schemes in the budget, economist and director of Madras School of Economics, Professor N R Bhanumurthy said, "A central scheme of cash transfer to help women can be considered in the budget. The reason for this is that we have found in our study that this is benefiting the family more, especially in terms of nutrition."

Announcement of cash transfer to women possible

He said that it should be started in such a way that there is no burden on the treasury. For this, we need to reconsider other similar schemes related to women. In this regard, economist and director general of research institute RIS (Research and Information System for Developing Countries) Sachin Chaturvedi said, "According to me, cash transfer to women is a very important initiative and it can be started. The reason for this is that the results of the cash transfer scheme to women are better than many other schemes with benefits such as removing malnutrition, and self-respect. "

Such announcements have been made in the assembly elections.

It is noteworthy that in the assembly elections being held in Delhi, all the major parties have announced to give cash to women. Earlier, such announcements were also seen in the assembly elections of Maharashtra and other states. In this regard, Lekha Chakraborty, Professor at the National Institute of Public Finance and Policy (NIPFP) and Member of the Governing Management Board of the Munich-based International Institute of Public Finance, said, "Cash transfer in the hands of women can be a good step, but it is a short-term measure to deal with the livelihood crisis. Ensuring employment and loan distribution to women can help them in the long run."

Low hope of an increase in Kisan Samman Nidhi

When asked about the possibility of increasing the amount under Kisan Samman Nidhi, Chaturvedi said, "Benefits have been seen from Kisan Samman Nidhi in the past. This has given a boost to small and marginal farmers. Chaturvedi is also a member of the Reserve Bank of India (RBI) board of directors. He said, "However, the government can link it to the purchase of manufactured goods related to agriculture so that mechanization in the agricultural sector increases. Therefore, instead of giving Rs 6,000 in cash, they can be given a higher amount so that they can buy small equipment useful for agriculture. This will promote mechanization in the agricultural sector along with manufacturing." Regarding this, Bhanumarti said, "However, Kisan Samman Nidhi is a universal scheme. Big farmers are also getting their benefits. In such a situation, there is a need to study it so that those who need it get the benefit and only after the study, the amount given in this item should be considered to be increased or decreased."

GST reduction can be considered

Lekha Chakraborty said, "There is a need to increase gross capital formation in the agricultural sector. Targeted cash transfers can only be a temporary solution to solve the problems in the agricultural sector. Along with this, there is a need to work in the agriculture sector given the impact of climate change. When asked about relief on the tax front in the budget, Bhanumurthy said, "I cannot predict what the Finance Minister will do. However, the tax burden can indeed be reduced to give impetus to the economy. Be it indirect tax or direct tax. However, I believe that reduction in indirect tax (GST) is more important because it will affect everyone." He said, "You know, six to seven percent of people pay income tax. Therefore, if you reduce direct tax, you are benefiting only six to seven percent of people... According to me, GST is a better way to deal with the issue of consumption in the economy."

Disclaimer: This content has been sourced and edited from Zee Business. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.