With the Union budget 2017 around the corner there are huge expectations from the Modi government for taking out path breaking budget.
Some people are claiming that this budget should be looked at in same way as the liberalization in 1990s
Some of the reasons for this are:
1. Recently a game changing move, demonetisation has created a lasting impression on the common man and they are expecting some relief.
2. The elections in major constituencies, including UP are around the corner.
3. The economy, especially from a private sector spending perspective has come to a grinding halt and some impetus is required to bring the spending engine back.
Some of the expectations from the upcoming Union Budget 2017 are as follows:
Corporate Tax Rate Reduction
The industry experts and corporate heads have been talking about this for long. To become competitive and attract greater foreign investments this is one thing that has to be done immediately – on an average the rate is looming around 33-35%.
Changes in slabs for individuals
To please the common man the change in tax slabs and exemption limit is one of the key things that is expected to be done by the Finance Minister of India, Arun Jaitley
Providing incentives for digital transactions
As India is heading towards digitalisation after demonetisation, the Finance Ministry should come out with some kind of incentives for continuing with digital transactions.
Timelines for rolling of GST
This was the most cheered rollout in the calendar year 2016. But with state finance ministers not agreeing on certain clauses like revenue sharing and dual control – roll out of GST would be one thing which would be on top of everyone’s agenda.
Increase in benefits for investment
Investments, especially real estate, may see a higher exemption limit for both principal and interest amounts – this would not only help attract more house purchase/ investment by consumers sitting on the fence but also provide larger income in the hand of existing home loan consumers.
What happens with the budget would surely be anticipated not only by the common man but political parties for sure.