KOCHI: The industrial sector in India is highly optimistic about the final budget of the second Modi government, which will be presented on Wednesday by Union Finance Minister Nirmala Sitharaman. Comprehensive announcements to improve the investment environment and simplify the tax system are expected to find a place in the announcement.

The interim budget is being presented this time as the general elections are around the corner.

Unlike olden times, there won’t be any major announcements but there is still hope that more money will be earmarked for various projects and sectors.

PM Kisan Scheme

The biggest announcement of all. The Prime Minister Kisan Endowment Fund is expected to be increased from Rs. 6,000 to Rs. 9,000.

PM Awas Yojana

It is expected that more money will be earmarked for the housing sector through the Pradhan Mantri Aavasa Yojana. Rs 1 lakh crore scheme may be announced to provide low-cost houses to the homeless.

Mahatma Gandhi Rural Employment Guarantee Scheme

There may be a significant increase in the allocation for the Mahatma Gandhi National Rural Employment Guarantee Scheme this time given the general elections. The Finance Minister had reduced the allocation for the scheme in the last budget.

Benefits to agriculture and rural sector

The interim budget is likely to include several schemes to revive the agricultural and rural sectors, which are suffering due to climate change and rising prices of raw materials. Measures including extending the duration of the income transfer scheme are expected. More money may also be allocated for fertilizer subsidies, crop insurance etc.

MSME sector

Medium Enterprises (MSMEs), which are a great boost to the global financial sector will benefit from the budget. There is also a proposal to give tax relief to companies that buy products and services from them.

Tax breaks for the middle class

The finance minister may be ready to change the tax slabs to give relief to the salaried middle class. Financial experts say the new guidelines will apply to those who file both types of tax returns.