Post Budget Quotes | Parle Products
“We feel that most of the expectations we had from the budget have been met by the Finance Minister. Notable among them is putting more money in the hands of consumers through job creation and increased infrastructure spending. The Finance Minister has also facilitated more disposable income to drive demand through changes in the tax regime, including a higher standard deduction which has gone up from ₹50,000 to ₹75,000 for the new tax regime. Additionally, there is a provision for a higher deduction under NPS accounts, increasing the employer contribution from 10% to 14% for the new tax regime.
The government’s strategy appears to push taxpayers to move towards the new tax regime by revising tax slabs, which means higher slabs of taxes are applicable at higher income levels if no deductions are taken. The revised tax slabs now include 5% on income from ₹3-7 lakh, 10% on income from ₹7-10 lakh, and 20% on income from ₹12-15 lakh, with only 30% applicable above ₹15 lakh. With this adjustment, we expect consumers to spend more because they would have higher disposable income in their hands. So I think that the government has done a great job by priming them. Ensuring that there would be a good increase in demand for goods as a result of higher disposable income in the hands of consumers.
Another significant highlight of the budget is the emphasis on creating employment. The government has introduced a new internship scheme providing ₹5,000 per month, which will not only improve employability for freshers but also offer opportunities to those struggling to find jobs due to a lack of experience. Additionally, a direct benefit transfer of ₹15,000 will be given to all employees of corporate India registered with EPFO, further supporting job creation and employability.
On the infrastructure front, the government has announced substantial outlays, including ₹1.52 lakh crore for agriculture and allied sectors and ₹2.66 lakh crore for rural development. For urban infrastructure, a total of approximately ₹10 lakh crore has been allocated. These investments are expected to drive job creation and economic growth. Furthermore, the increase in Mudra loan limits from ₹10 lakh to ₹20 lakh will support small businesses and entrepreneurs. Overall, the budget’s emphasis on infrastructure and employment generation is likely to significantly boost demand for FMCG products.”
