Budget 2024: More fiscal incentives needed to bridge the gender gap
Apart from measures to advance gender equality, Millennials and Gen Z in India are also expecting, among other things, tax relief and extension of FAME and other subsidies to push EV ownership.
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As we approach February 1, the pre-election context and the fact that it is an interim budget suggest that there may be few if any major policy overhauls. However, there is optimism for positive changes, particularly in areas that impact the common citizen.
Taxation relief is a key expectation as always, with keenly awaited proposals like increasing the deduction limit under Section 80C of the Income-tax Act, reducing capital gains taxes and elevating the standard deduction limit for salaried individuals. These measures could potentially ease the financial burden on the middle class.
Environment-conscious citizens also hope for some good news including the extension of FAME subsidies and the resumption of Section 80EEB, which allowed for set-offs against loans for electric vehicles, both of which would drive greater adoption of non-fossil-fuel-powered vehicles, especially among Gen Z and Millennials.
FAME is Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles and the FAME India Scheme is a government subsidy scheme under the National Electric Mobility Mission Plan.
Coming to gender equality, the incumbent government has never lost focus on inclusive growth and women’s welfare, and the expectation is for the trend to continue. As women in finance, we are expecting measures like special funding plans, easier loan access and skill-development programmes that can give the necessary boost to women entrepreneurship that could help propel India to achieve the $5-trillion economy ambition.
Also, for women in STEM (science, technology, engineering and mathematics), we are expecting new incentives and scholarships to increase their participation in these fields. And given the status of the gender gap in our country, more fiscal incentives are needed to achieve gender equality.
In general, even if it's an election year and it's only an interim budget, we are optimistic that Budget 2024 will concentrate on making things better for women, ensuring they have better access to education, healthcare, safety, asset ownership and financial security.
The budgetary focus on these aspects will not only empower women but also contribute significantly to the nation's overall development.
Anushka Rathod is a former investment banker and a digital content creator demystifying finance. Views expressed are personal.
