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NEW DELHI: Chief economic adviser V Anantha Nageswaran on Monday said the Budget proposal to provide tax rebate for individuals earning up to Rs 7 lakh annually (under the new tax regime) will help those in the lower income brackets.
At a post-Budget seminar organised by five think tanks, he said that someone earning Rs 9 lakh can save Rs 45,000 only after investing over Rs 1. 8 lakh. “People in the lower income brackets have lower propensity to save and it takes a lot of effort,” he said. The government’s chief economist also dismissed criticism of the allocation for the rural employment guarantee scheme being lowered, pointing to higher funds being made available to PM Aawas Yojana (Gramin) and the Jal Jeevan Mission, which are also available for rural workers.
Besides, he said that with a pick-up in economic activity, the demand for jobs under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) is expected to come down as surplus rural workers will be absorbed in other activities and added that if required, more money will be made available.
Nageswaran also said due to measures taken by the government, including direct benefit transfer, more was now available in the hands of beneficiaries. The CEA said that in the case of PM-Kisan, for instance, the database had been cleaned up and ineligible beneficiaries had been weeded out.
At a post-Budget seminar organised by five think tanks, he said that someone earning Rs 9 lakh can save Rs 45,000 only after investing over Rs 1. 8 lakh. “People in the lower income brackets have lower propensity to save and it takes a lot of effort,” he said. The government’s chief economist also dismissed criticism of the allocation for the rural employment guarantee scheme being lowered, pointing to higher funds being made available to PM Aawas Yojana (Gramin) and the Jal Jeevan Mission, which are also available for rural workers.
Besides, he said that with a pick-up in economic activity, the demand for jobs under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) is expected to come down as surplus rural workers will be absorbed in other activities and added that if required, more money will be made available.
Nageswaran also said due to measures taken by the government, including direct benefit transfer, more was now available in the hands of beneficiaries. The CEA said that in the case of PM-Kisan, for instance, the database had been cleaned up and ineligible beneficiaries had been weeded out.
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