The BJP has urged the government to put more money in the pockets of middle-income families in the next budget and cut the costs of raw material for small and medium-sized businesses, a party spokesman said on Thursday. The party has suggested tax relief to the middle-class by increasing standard deductions.
After the coronavirus impact shrank the economy in the last two quarters, Prime Minister Narendra Modi's government wants to boost spending on projects for roads, ports and pipelines in the next fiscal year to revive businesses and generate jobs.
PM Modi's Bharatiya Janata Party (BJP) feels that while the poor received free rations and businesses got state-guaranteed loans and other concessions, the economy will benefit from slimming the tax bill for the middle class with more generous standard deductions.
"The middle-income group is feeling a lot of pinches, and they need some support," said Gopal Krishna Agarwal, who handles the BJP's communication and coordination on economic affairs.
"Incentivising consumption by them would also help the industry," Mr. Agarwal told Reuters, days after meeting the finance minister to discuss budget suggestions by party members.
"I can say the budget will take care of the middle class."
Last time, the Budget had maintained the status quo without making any major change that would have effectively benefited the tax-paying middle-class.