Expectations from Budget 2018

By Aarushi Singh

Budget for this financial year 2018-2019 is seen to be different compared to other years because it is to be be formulated under constraints of not only demonetization but also GST. Over few years, various steps have been taken by the government to revive the economy by controlling inflation, revival of the manufacturing sector and many more. Initiatives have also been taken to open various sectors for investments which is evident from the increased FDI.

There are many expectations from this Budget which include;

• ·      Hike in the tax exemption limit from existing Rs 2.5 lakh per annum to at least Rs 3 lakh p.a. Considering the steep rise in cost of living due to inflation, it is suggested that basic limit for exemption and enhancement in income slabs will benefit the low-income group.  
•      The Fintech industry is also optimistic about this year’s budget after India becoming the 2^nd fastest country to adopt Fintech technologies in the world after China. Industry is expecting policies in support of digital payments.
•      The focus of this budget is expected to be on rural infrastructure and railway infrastructure along with the framework of stations and trains.
•      Recapitalization plan of public sector banks after rising bad loans will also be a major announcement.

Apart from these major reforms, several economists are urging the government to cut corporate tax rates in order to make the Indian industries on a global level.