The government will on Friday table in Parliament the Economic Survey, which is the Finance Ministry's view on the annual economic development of the country and gives a broad idea on the macro-economic data which will impact the decisions of the Union Budget.
Expectations from the Budget this year will seek changes in the savings cap, medical reimbursement limit and exemption on housing loan interest.
The lowest income tax slab is likely to be raised from Rs. 2.5 lakh to Rs. three lakh, which means income up to Rs. three lakh is likely to be exempt from the Income Tax.
The Centre is also likely to enhance bank recapitalization from Rs. 25,000 crore to Rs. 30,000 crore. This comes in the background of reports that 29 state-owned banks have written off a total of Rs 1.14 lakh crore of bad debts between financial years 2013 and 2015.
Finance Minister Arun Jaitley was yesterday supposed to meet economists to get a grip on some quick-fix measures to package a bitter pill for the economy. But the meeting with the economists and financial experts was called off due to pressing engagements.
Jaitley had earlier in January met the economists as part of pre-Budget meetings. He had then also met the industry captains, bankers, farmers and trade union representatives.