What to expect from Interim budget :
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Populist budget is a key theme for the successive government in their respective interim budget. This budget will be no more exception. Modi government is in the last year before the 17th General election, which are due in April or May. The government has performed quite well on certain economic parameters, especially containing inflation providing high growth. The expectations are quite high from various section of society towards a populist budget favouring every section of society. But the government hands are quite tight due to some major distress on certain sectors of the economy such as Farm, banking and manufacturing. The current Modi government may present a less populist budget compared to their previous respective government. Every section whether its Industry, investor, salaried individual, farmers, women and youth will have their eyes on tomorrow budget. Let’s look at what will be the expectation of various sections of society from this interim budget.
1) Expectation of Indian Industry:
Though it’s an interim budget, Government may put certain surprise for the industry to woo the key drivers of the Indian economy. One such move will be slashing of the corporate tax from 25 percent to 20 percent, the key demand of the industry leader for last few years. The key priority should be given to MSME and SME’s through easy availability of loan, less regulatory compliance. Startup India may get a boost in case if the government lowers the Angle Tax which is on the wish list of every investor. Real estate sector currently needs a special attention which has seen serious downturns after demonetisation. Allocating a separate status to House Financing companies will ease the liquidity scenario.
2) Salaried And Middle Class.
Salaried and Middle class are one of the key pillars of the Indian economy. Despite inflation at a normal rate, wages have not gone up considerably in the current Modi government. But still Indian middle class has put a lot of confidence in the current administration and its economic policies. Considering the needs of the common man, here are some of the expectation of the common man from the interim budget.
- Increase in the maximum limit of deduction from section 80C of income tax.
- Deduction in the home loan interest will be one of the key expectations.
- Tax slabs which are revised each year must include raising the tax exemption from 2.5 lakh.
3) Farmer and Tertiary sector individuals.
This interim budget will be the last attempt by the Modi government to woo the rural voters. Chances are quite high that this interim budget will have some bonanza for farm sectors and rural economy. Modi Government may surprise the voters with their budget. But here is the list some of the items may be presented in budget:
- A farmer relief package of more than Rs. 70,000 crores.
- Waiving of about Rs. 1.8 lakh crore for food subsidies.
- Waiving of interest on crop loans from the farmer.
Whatever be in the briefcase of the Finance minister, it will going to have a longer impact on the country. It may set the mood of the nation and the fate of the ruling party.
Stay tuned to know more information and analysis about Interim budget 2019 …!!