Union Budget 2024: Ajay Bagga urges focus on rural development, tax relief

Union Budget 2024: As Finance Minister Nirmala Sitharaman prepares to present the Union Budget 2024, market expert Ajay Bagga in an exclusive conversation with Republic TV has called on the government to prioritise rural development and tax relief for the common people. Bagga underlined the need for a targeted approach to address the disparities between rural and urban economic growth.

“It's high time that the government provides tax relief to the common people,” Bagga stated. He highlighted the economic divide, noting that 66 per cent of India's population resides in rural areas, which has been growing at a modest 4 per cent over the past five years, compared to the 8-9 per cent growth in urban regions. Bagga expressed concern over declining purchasing power and the relatively small consumption class in the country.

He further pointed out that income disparities remain stark, with India's income distribution resembling that of sub-Saharan Africa more closely than that of Indonesia.

Bagga stressed the necessity of elevating at least 50 per cent of the population to a higher income bracket to achieve more balanced economic growth. “Although job creation is a focus, nearly 80 per cent of jobs offer salaries below Rs 20,000,” he noted. Bagga also underscored the need to broaden the tax base, as only 2 per cent of Indians contribute a significant portion of the income tax revenue.

Bagga's comments highlight the urgency for the Union Budget 2024 to address these critical issues and ensure that economic policies benefit a broader section of the population.

(Source: Republicbiz)