Budget is “an estimate of income and expenditure for a set period of time”. This statement says more than one can inspect of. And, the upcoming Budget will be crucial for the country as it has to deal with the impact of pandemic which has affected all parts of the economy, including revenue collection, disinvestment, expenditure, exports, and food prices. The economy is projected to contract by 10.3 per cent this year, according to an IMF forecast. Even the Reserve Bank of India expects economy to shrink by 9.5 per cent this year.
Every year newspapers and news channels reaches out to the industry and taxpayers for ideas and suggestions. Envisionly, many of the suggestions are taxpayer-friendly measures. But this year, one must brace for higher taxes as the government needs to pull the economy out of the Covid-inspired recession. It’s true that global rating agencies keep an eye on the fiscal slippages by emerging economies like ours. At Rs 8.7lakh crore, the fiscal deficit has already overshot the annual target of Rs 7.96 lakh crore estimated in the budget but higher spending by the government seems the only way to grow now.
Finance minister, NIRMALA SITHARAMAN by her speech indicated that the Modi government is planning for massive public spending in upcoming union budget 2021, so that the economy will revive from the shock given by covid-19.
Some of the pointers on which government is concerned are:-
1. Expenditure on vaccine for covid-19 will be the utmost priority.
2. Government will focus on infrastructural projects which will not only help in earning good revenues but also generate jobs.
3. Increase the outlay of grants for health expenditure and money to states undo certain schemes.
4. Multiplier effect on job opportunities and demand through high-quality spendings.
These points will help economy to reach at a positive rate of growth very soon.
Finance minister also announced that this year an e-porta l will be open for general public where they can give their suggestions for the upcoming budget to the government. All the suggestions and expectations of taxpayers and industry will be kept in mind and if acceptable for all, will be implemented. Therefore, different sectors from all of the country have a lot of expectations from the upcoming budget which will bring new opportunities for growth.
1. Give indexation benefits to equity funds, this will allow investors to create real wealth and safeguard their value of investment.
2. Extend NPS TaxSaver option to general investors.
3. Remove tax on dividends.
4. Clarify tax rules for futures and options.
5. Offer exemption to tax free portion put in annuity.
6. Tax benefit for vehicle purchase
7. Remove restrictions on setting off home loan interest.
Other than these, there are many more suggestions and expectations which are registered through the e-portal which will give a lot of benefits to taxpayers and industries. But only those suggestions will be accepted which will be in favour of the whole economy. People should also consider this while giving suggestions.
If all goes well, in Union budget 2021 there will be high potential growth while taking care of the suggestions and expectations of the people.