The Budget might be presented on the last day of February, but its preparations began back in September 2015. The Budget session is expected to be a stormy one with opposition gearing up to protest and stall the parliament on recent issues which have been troubling the government. It is expected that the Budget will be presented by the Union Finance Minister Arun Jaitley keeping an eye on the national targets the government has set for themselves.
Understanding the importance of the budget, which is set to boost economic growth, the Prime Minister has been closely monitoring the whole process and discussing solutions which can be incorporated within the budget. The government consulted a huge pool of people which included bureaucrats and public opinions. Now, the nation awaits for the big day which will ensure that India remains a bright spot amidst the global slowdown.
Some of the major highlights of the Budget can be…
1. Budget will ensure that India grows at 7.6 per cent this year. This is remarkable considering the given global circumstances.
2. Keeping the Current fiscal deficit to a level not more than 3.8 per cent of the GDP.
3. Understanding the present situation, the budget will focus on agriculture, banking and other unorganised sectors along with creation of jobs.
4. With the high rising costs, there is a chance that the exemption limit will be raised from 2.5 lakh to 3 lakh for the salaried class.
5. As the government is widely advocating “housing for all” home owners can expect that they will receive a 100% deduction on home loan interest.
6. There is a possibility that National Pension Scheme might undergo tax free withdrawl which will make the scheme more attractive.
7. To boost growth, Start-ups to be allowed to deploy any capital gains in other investment avenues to allow larger flexibility and avail tax benefits.
8. Citizens will look for the Rs 25000 deduction under Sec 80D to be increased, considering galloping rate of medical inflation. Also the standard deduction limit could be increased to Rs 5 lakh for senior citizens and reduction in tax rate by 5% can also extended to them.
9. Accepting recommendations from the 7th Pay Commission – OROP, Rural Development Schemes and increased infrastructure spending.
10. The government will look to continue Subsidy rationalisation with direct benefit transfer for food and fertilizer subsidies.
Lets hope that this years budget will not only be innovative but will be a statement of growth that will send strong signals to the rest of the world.
By – Rahul Choudhury
Media & Communications, Innovative Financial Advisors Pvt. Ltd.