Narendra Modi government's Interim Budget likely to set nominal GDP growth at 10-10.5 pct

According to reports, it is likely to assume 10-10.5 per cent nominal gross domestic product (GDP) growth against 8.9 per cent estimated for FY24 by the National Statistical Office (NSO).

“We were waiting for the First Advance Estimates GDP numbers for FY24. We will finalise the nominal GDP growth assumption for FY25 Interim Budget in a couple of days. Back of the envelope calculation suggests nominal GDP growth could be in the range of 10-10.5 per cent for FY25,” a government official told Business Standard, requesting anonymity.

Meanwhile, the government, in its upcoming budget, may also raise the tax rebate under the new income tax slab to Rs 7.5 lakh from Rs 7 lakh prevalent as of now.

The move, if made, will imply that people with an income of Rs 7.5 lakh per annum, after a standard deduction of Rs 50,000, will be exempted from paying income tax from 2024-25, reported India TV.

Finance Minister Nirmala Sitharaman may introduce a Finance Bill to enforce the changes, the news channel reported.

In its 2023 budget, the Indian government raised the rebate under the new income tax regime from Rs 5 lakh to Rs 7 lakh.

The basic exemption level was also raised from Rs 2.5 lakh earlier to Rs 3 lakh.

The new tax regime also became default tax regime since April 1, 2023.