Middle class hoping for some relaxation from the union budget 2023.

Nirmala Sitaraman's recent statement that she understands the problem of the middle class because she is also from a middle-class background.

Relating to that, the middle class should get some relief in tax deductions from income and investment. For the past two years, the middle class hasn't gotten any relaxation from the budget. This time what you can expect from the budget 2023, here are the key highlights by Dr. Mukul Agrawal.

First, we need to pay attention to the continuous job cuts. All of them expect capital expenditure from the government for job creation. In this, the sector in which capital expenditure will be more useful in the union budget is renewable energy. The government's target is to become a net zero-carbon emission country by 2070. The government plans a CAPEX of 20 trillion to protect the environment and increase employment.

The second sector is infrastructure, especially railway infrastructure, in which you will also see a boom; it clearly shows that the government is in a mood to do CAPEX, which will increase the country's infrastructure and employment.

Apart from these two sectors, the government is also focusing on industries like EVs, semiconductors, and Defense in which CAPEX can happen. With all this CAPEX, employment will also increase along with the country.

2nd problem of the middle class, if we talk in terms of financial planning, then the government should increase the current insurance limit of 1.5 lakhs under 80C under tax exemption. So that the middle class can get tax relief and proper insurance planning can also be done.

3rd issue in terms of investment, now LTCG means long-term capital gain tax, and STCG means short-term capital gain tax; in both cases, equity or bonds, the tax system in both the investment instruments is quite complex, and there is a need to simplify the government even more. This is so that people start investing without fear.

In conclusion, the union budget 2023 should provide some relaxation to the middle class regarding tax deductions and increase capital expenditure in sectors like renewable energy, infrastructure, EVs, semiconductors, and Defense. This will help increase employment opportunities and provide tax relief to income or investment. In addition, simplifying the current long-term and short-term capital gain tax system will help citizens start investing without fear of tax deduction.

Dr. Mukul Agrawal is a Guinness Book World Record Holder, Trader, Trainer, and Author of the best-selling book on Technical Analysis. His journey in the world of finance began almost 19 years ago when he decided to turn his passion into a profession. Today, he has built a loyal community of over 2 million people on Social Media, all eager to educate themselves about the stock market. His mission is to empower people financially by providing them with the right knowledge to make money responsibly and sustainably.