Expectations from Union Budget 2018-19

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Budget is an annual event which is held in the month of February. The corporate and other sectors are anticipating that in 2018 the government will come up with a growth-oriented budget. There is a lot of expectations among the people as 2018 is the year before the general election (2019). Due to Demonetization and GST, the economy is on a firm footing and structural changes in Agriculture, Banking, Education etc are envisaged by the people.

Expected Launch Date of Union Budget 2018-19

As stated by news sources, the Union Budget for 2018-2019 will be presented in the second week of Feburary this year. Consequently, the budget sessions for the year have been planned to start from the 1st week of Feburary this year.

Common Man Expectations with Union Budget 2018

a. Tax rate revision – The common man expects a lower income tax burden. A recent survey by Local Circles revealed that 31% respondents want an increase in tax exemption limit to Rs3 lakh and 37% want tax slabs to lower the income tax burden.

b. Increasing Deduction under Sec 80C At present, the limit under sec 80c towards investment in PF, PPF, Insurance, NSC, etc is Rs1.5 lakh. This is inadequate since alternative investment avenues need to be explored due to reduced fall in interest in Bank deposits etc.

c. Tax-Free Gratuity in line with government employees. At present, Pvt sector employees are entitled to Rs10 lakh of tax-free gratuity after 5 or more years of service. There is expectation of bringing it in line with a tax-free payout of central government employees, which is Rs 20 lakh.

d. Reduced GST Rate – There is over all increase in expenditure of the common man and the rate of GST for most of all goods should be brought down to nominal rate from a high of 18%. There is also a demand for Petrol and Diesel to be brought under GST.

Agriculture Expectations with Union Budget 2018

Finance Minister Arun Jaitley has clearly said that Priority will be given to the agriculture sector in the Union Budget of 2018. According to him, economic growth is not justifiable and equitable if the benefits are not clear and evident in the farm sector.

Government is expected to provide stimulus to the agricultural sector on irrigation, crop insurance and agricultural credit to help cash-starved fertilizer players.

Farmers expect to get a fixed income so that they are treated in same way as those from other sectors.

Manufacturers Expectations with Union Budget 2018

Introduction of GST has resulted in a technical challenge during 2017, which is now more or less resolved. Manufacturing sector is expecting government to push the Make in India program and provide wider incentives and increase import duty on imports of similar goods.

Private players expect to have better incentives in operation in Smart cities and increased infrastructure spending.

Labour reform is another area where manufacturers are expecting some policy changes during the current budget.

With the Union Budget 2018 just round the corner, it remains to be seen how much would it benefit the common man and whether their expectations would be fulfilled or not.

Last Updated on 30/1/2018