Lok Sabha Question No. 1626 (UNSTARRED), answered on 2025-03-10
Subject: Growing Economic Inequality
Ministry: FINANCE
Asked by: Shri S Supongmeren Jamir

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA UNSTARRED QUESTION NO. 1626

TO BE ANSWERED ON 10.03.2025

## GROWING ECONOMIC INEQUALITY

## 1626. SHRI S SUPONGMEREN JAMIR:

Will the Minister of FINANCE be pleased to state:

(a)  the  steps  taken  by  the  Government  for  addressing  the  growing  economic  inequality  in  the country, where the wealth of Billionaires has tripled while millions remain below the poverty line;

(b)  whether the Government has any plans to reintroduce the wealth tax (2015) or implement a robust taxation system on the super-rich;

(c)  the  measures taken by  the Government to ensure that economic growth benefits reach to all citizens  particularly  in  addressing  issues  such  as  stagnant  wages,  rising  inflation  and  poor  job growth; and

(d)  whether  the  Government  has  any  comprehensive  plan  to  balance  wealth  concentration  with fairness and justice in policy making?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY)

(a):  The  primary  policy  objective  of  the  Government  is  development  of  all  sections  of  the population.  Its  focus  on  inclusive  growth  is  reflected  in  commitment  to  'Sabka  Saath,  Sabka Vikas' to reduce poverty and inequality, provide social security, income generation and livelihood options, and improve the quality of life of the vulnerable sections of the population in the country. With these objectives, the Government is implementing a number of targeted programmes such as Pradhan Mantri Awas Yojana, Mahatma Gandhi National Rural Employment Guarantee Scheme, Deendayal Antyodaya Yojana - National Rural Livelihoods Mission, National Social Assistance Programme, Deen Dayal Upadhyaya Grameen Kaushalya Yojana, Pradhan Mantri Suraksha Bima Yojana, Pradhan Mantri Jeevan Jyoti Bima Yojana, Atal Pension Yojana, Pradhan Mantri Mudra Yojana, Stand Up India Scheme, Umbrella Programmes for Development of Minorities and Other Vulnerable  Groups;  Rashtriya  Krishi  Vikas  Yojna;  fund  transfer  under  PM-KISAN,  PM  Fasal Bima Yojana claim payments; fertiliser subsidies; interest subvention for dairy cooperatives; AgriInfrastructure  Fund  for  farm  gate  infrastructure  etc.  Further,  the  Government  has  implemented various programmes, including Jal Jeevan Mission, Swachh Bharat Abhiyan, PM Ujjwala Yojana,

PM Saubhagya Yojana, Ayushman Bharat, Pradhan Mantri Jan-Dhan Yojana, etc.  to bring about overall  improvement  in  the  quality  of  life  of  the  people  through  universal  access  to  basic amenities.

(b): There is no such proposal under consideration. India has a progressive direct taxation regime wherein a person in the higher bracket pays income-tax at higher rates as compared to a person in the  lower  income  bracket.  Further,  surcharge  on  income-tax  is  applicable  to  persons  having income above a certain level. Thus a robust taxation system is already in place vis-a-vis taxation of higher brackets of income-earners.

(c)  and  (d):  The  Government  has  a  multi-pronged  approach  that  addresses  economic  inequality, promotes  social  mobility,  and  ensures  fair  economic  participation.  It  has  been  prioritizing employment  generation  and  improving  employability.  The  annual  periodic  labour  force  survey (PLFS) report shows that labour markets have recovered beyond pre-COVID levels in both urban and rural  areas.  The  unemployment  rate  for  individuals  aged  15  and  above  has  decreased  from 5.8% in 2018-19 to 3.2% in 2023-24.

Various schemes and programs have been implemented to expand job opportunities, as provided in reply  to  part  (a)  above.  Besides,  the  focus  on  growth-promoting  measures  like  robust  capital expenditure,  continuing  improvements  in  logistic  facilities,  urban  development,  promotion  of MSMEs,  agriculture and manufacturing are promoting overall economic  growth, thereby improving employment, and purchasing power of the citizens.

The government is also implementing the Skill India Mission (SIM) to provide skill, re-skill, and up-skill training through an extensive network of skill development centres, schools, colleges, and institutes.  The  SIM  aims  at  enabling  youth  of  India  to  get  future  ready,  equipped  with  industry relevant  skills.  Besides,  the  PM  Vishwakarma  scheme  was  launched  in  September,  2023  to provide end-to-end support to artisans and craftspeople of 18 trades who work with their hands and tools.

The Government has proposed significant measures in the Union Budget 2025-26 to enhance the spending power of the middle class. The Union Budget has proposed that there will be no income tax payable upto income of ₹12 lakh per annum under the new tax regime. The Budget has also proposed a change in slabs and rates of personal income tax across the board to benefit taxpayers. The new structure is expected to substantially reduce the taxes of the middle class and leave more money in their hands. The other measures of the Government to benefit the middle class include enhanced pension schemes, support for affordable housing, public health schemes and financial support to entrepreneurs.

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