Finance Minister Nirmala Sitharaman will be presenting the maiden Union Budget of Modi 2.0 government on Friday, in which she will outline the blueprint to achieve PM Modi's goal of turning India into a $5 Trillion economy.
The Finance Minister got the ball rolling after she announced that she was crowdfunding ideas shared by scholars, economists, and enthusiasts on various platforms.
While there are high expectations among the common man for a relief with the rise in personal income tax threshold for certain categories, there are expectations on the increase in expenditure on agriculture, healthcare and social sectors at the same time for other section of society.
Given the fact that the Finance Minister while presenting the Vote on account Budget for the NDA first tenure in February, announced a full tax rebate for everyone below the income of Rs 5 lakhs per annum in February this year.
But the question remains that will Nirmala Sitharaman’s budget ensure immediate implementation of the same or will fiscal prudence take precedent and will the common man have to wait it out?
The BJP in the election manifesto had promised "lowering of tax rate thereby rewarding honest taxpayers and improving compliance.."
According to Republic sources, we can expect SOPs to the middle class, more measures to increase savings might tinker with the tax exemptions, tax (EET) nature of certain investments and savings schemes, the likelihood of changes in home loan interest and principal exemption limits as also a super-rich tax.
With the expectation of the government to incentivize investments made in insurance, Budget could make room for tax incentives for the National Pension Scheme, according to Republic sources.
On the corporate side, the Finance Minister might announce further tapering of corporate tax and grandfathering of certain tax incentives, plus the use of IBC for further cleansing of the system
As per sources, growth can be pegged at 8% of GDP over the next five years.
Article 112 of the Indian Constitution defines the Union Budget as the annual financial statement of the estimated receipts and expenditure of the government for that particular year. The Budget accounts the finances of the government for the fiscal year which starts from April 1 and ends on March 31 next year. It is the most detailed report on the financial plan of the country, focusing on the expenditure and revenue to be made by the government during the fiscal year.
The budget determines how the money will be handled by the government. In a nutshell, it is a statement of income and expenditure of the government.