Exciting Anticipations for the Union Budget 2019: Key Highlights and Expectations
Introduction
The Union Budget 2019, anticipated to be unveiled by Finance Minister Nirmala Sitharaman, is a crucial milestone for the Indian economy. As the economy faces a slowdown, the focus is on reviving growth, job creation, and addressing the concerns of various sectors. This article highlights the key expectations and anticipated measures from this year's budget that might reshape the economic landscape.
Key Expectations for Nirmala Sitharaman's Budget 2019
The upcoming Union Budget 2019 under Nirmala Sitharaman is expected to address several pressing concerns, including job creation, revival of key sectors like MSMEs and the agricultural sector, and the improvement of governance and taxation practices.
1. Job Creation and Economic Growth
Job creation and economic growth will be the top priorities of the Union Budget 2019. With unemployment at a 45-year high, the government is likely to announce concrete plans to boost job numbers in the coming years. Special emphasis will be placed on sectors like auto and MSMEs, which are employment-intensive. Specific initiatives and measures to improve investment in these sectors can be expected.
2. Additional Income Tax Benefits
While personal income tax reforms might not undergo radical changes, there is a high probability of additional income tax benefits. The basic tax exemption limit is expected to increase from Rs 2.5 lakh to Rs 3 lakh, providing a lucrative tax relief to a significant number of taxpayers. These changes could enhance consumer demand and stimulate economic activity.
3. Reviving Banking and Financial Sector
Recapitalizing banks and addressing the issues faced by non-banking financial companies (NBFCs) will be another key focus area. A long-term plan for the revival of the banking sector and potential relaxations or incentives for NBFCs could be expected. This would help stabilize the financial system and ensure smoother functioning of credit markets.
4. Boosting Agricultural Growth
Given the crucial role of agriculture in the Indian economy, the budget is expected to introduce long-term plans to boost agricultural growth. This could include proposals for the introduction of a farmers' stress fund and other incentives to boost their incomes. The PM-KISAN scheme, which provides direct financial support to small and marginal farmers, is likely to expand in scope and coverage.
5. MSMEs and Farm Sector Incentives
Small and medium-scale enterprises (MSMEs) are likely to see special measures to boost their investments. Easing of lending norms and special incentives could help MSMEs recover from the slowdown witnessed in the aftermath of the liquidity crisis. Similarly, the agricultural sector might benefit from increased support to modernize equipment, boost productivity, and boost income levels.
6. Empowering Women Through Tax Concessions
In alignment with the government's inclusive vision, the Union Budget 2019 is expected to provide additional tax concessions to empower women. This could include higher deductions under various sections of the Income Tax Act, thereby increasing women's participation in the labor force and economic activities.
7. Focus on Healthcare Modernization
Several industry bodies have been advocating for tax concessions in healthcare. The government is likely to increase deductions under Section 80D of the Income Tax Act, thus encouraging investment in healthcare infrastructure. A detailed long-term plan for the modernization of healthcare facilities is anticipated.
8. Defence Modernization and Indigenous Industry
Given the recent emphasis on self-reliance and indigenous manufacturing, the budget is expected to announce a roadmap for defense modernization and increased investment in local defense industries. Tax incentives for research and development projects might be introduced to boost innovation and technological advancements in defense-related sectors.
9. No Relief for Stock Markets
Despite hopes of tax concessions for investors, the government appears more focused on increasing tax collections. Long-term plans to enhance transparency in stock market operations might be presented, without the immediate introduction of measures like Long-Term Capital Gains (LTCG) and Securities Transaction Tax (STT).
10. Allied Tourism and Transport Sector
The allied tourism and transport sectors are expected to gain significant attention. Special plans with incentives for companies in the broader tourism and transport sector could be introduced. Improved regional connectivity schemes, such as UDAN, and a detailed roadmap for the modernization of the Indian Railways might also feature.
Conclusion
The Union Budget 2019 under Nirmala Sitharaman is set to address the current economic slowdown and pave the way for long-term growth. By focusing on job creation, sectoral revival, good governance, and inclusive growth, the budget aims to provide a robust foundation for India's economic future.