The finance minister and her team takes almost six months to prepare union budget, which effect our all economy. Then in January team devotes their time to freeze the documents, usually week before its presentation in parliament.
This year finance minister Nirmala Sitharaman will present her third budget on February 1. Taxpayers are looking to the finance minister to bring some relief. The budget will have a positive impact on voters if FM succeeds in creating a good factor on middle class. Taxpayers expect standard deduction hike, tax relief for saving for kids education, income tax relief in compliances.
WHAT FACTORS COULD HAVE IMPACTED THE BUDGET?
One and the most important for every political party is elections, this is considered more important than the upliftment of our economy. The government will come with fairy tales promises of subsidies and few new policies to fascinate their voters, which will definitely include doubling the income of farmers, providing employment in rural and strengthening social security and affordable housing for the poor and underprivileged. This will attract their voters from rural parts of our country.
If no tax rates are increased or no new taxes are introduced, it would be relief for small taxpayers.
However, it is not easy for the government to meet the expectations of different taxpayers and fulfill its fiscal targets as well. But taxpayers will be happy to have more money in their hands. If available deduction under sec 80c in income tax increases it will be a relief for many small taxpayers. Any increase in a deduction in home loan repayment will also bring relief to middle-class voters. An increase in the standard deduction for the salaried classes will bring much-needed relief to the salaried class.
Investors seek removal of long-term capital gain because investors are already paying security transaction tax. Due to the pandemic stock market players are increasing in India so the government will take some steps to provide relief to investors.
Due to ongoing pandemic health has become biggest priority for our nation. In India pandemic has exposed our health care infrastructure however citizens expect to bring some new reforms and policies to issue the address. The budget for upskilling youth to become health coaches is also required. Lower sections of society are covered under Pradhan Mantri Jan Arogya Yojana (PMJAY) health insurance scheme, there is still a need to bring national health coverage and to extend insurance coverage. The export of required health care products should be given incentives or should be manufactured in the country.
Ongoing pandemic has resulted in loss of learning for students across country. It is essential for the government to bridge the learning gap. Government should allow partnership between private players and provide proper training to teachers with the access of all softwares and gadgets this will also keep students upgraded with new skills and knowledge.
Also reduction in GST slab for teacher training will help make these trainings accessible to all teachers. We hope that educational reforms in budget 2022 will be more effective.
Governments ongoing green energy target will also be an important topic in this budget
Electric vehicle one of the hot topic since climate crises all over the world are high. Exemptions for loans on electric vehicles will promotes its sale. If central government consider to provide direct subsidy for purchase of EVs and for players establishing electric vehicle charging infrastructure, would boost and will help in rise of electric vehicle in our country.
Renewable energy resources will also be one of few important topics due to increasing pollution. Reforms will be seen on reducing pollution in upcoming budget.
Recently prime minister Narendra Modi has announced that January 16 will be celebrated as "national start-up day". With union budget new and micro start ups expect that government will announce measures that will ease business. Establishing policies and norms for start ups so that organizations can run the business without any administrative obstacles.
The Telecom industry needs investment and reliable communication infrastructure to meet rising demand for connectivity. Telecom industry expect reduction in basic custom duty because many equipments are imported in country.
Since recent pandemic has slowed down our economy government should focus on generating demand among consumers. Goods from essentials to discretionary and luxury items have seen price increase of over 10% to 15% because of high inputs which reduced margins.
The economic impact of a pandemic on the income of people in India must not be underestimated. Due to this, it is important that money is increased in hands of consumers.
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