five key expectations from Budget 2017
Union Budget 2017: Overview
India's Union Budget is an extraordinary occasion and it is frequently a very polarizing discuss with savants from different schools of thought communicating various suppositions. For quite a long time prior and then afterward the spending discourse, media dialogs including different specialists discuss desires and impacts of the Finance Minister's discourse. At that point all of a sudden, the whole media bazaar stops until one year from now.
Union Budget 2017
The 2016 spending plan was the same – there were different desires that did not work out as expected and there were to some degree surprising improvements. A portion of the declarations even drove specialists to term the Union Budget 2016 as a populist, traditionalist and composed particularly to pacify the masses. Before we investigate some of our desires from Union Budget 2017, how about we see what Budget 2016 declarations stood out as truly newsworthy.
Desires from Budget 2017
The Union Budget for 2017-18 will be introduced in Parliament in the principal quarter of 2017 on first Feb. Desires from various ventures and general society have as of now began coming in.
1. Income Tax Slabs and Rates:
This is on top of every citizen’s list of expectations. With the demonetisation announcement in November leading to massive inconvenience for the common man, many are expecting the government to increase the tax exemption slab from Rs 2.5 lakhs to Rs 3 lakhs. There may also be a reduction in the tax rates, which currently stands at:
3. Promote Cashless Transactions
Taking into account the government’s hints that the entire value of the demonetised notes will not find their way back as cash into the economy, the next budget is also expected to promote cashless transactions. Some of these such as discounts when using cards at toll booths, waiver of merchant discount rates when using debit cards at POS terminal, etc. have already been implemented though for a limited time. Additional benefits to those opting for cashless transactions through credit cards, debit cards and mobile wallets are expected to be part of the Union Budget 2017-18. Additionally, there might also be benefits announced for use of payment bank services that mainly target the unbanked and under-banked sections of society.
4. Boost Agriculture
There have been widespread media reports of farmers being unable to sow Rabi crops due to the unavailability of new currency notes in sufficient numbers. If the reports that large areas of agricultural land have remained unsown are true, food inflation is definitely going to cause a major problem in the coming months. Add to this the fickleness of the monsoon season and the government may be looking at the possibility of a food crisis in the coming months. Keeping this in mind, it is expected that farmers might get some additional benefits as well as greater access to cashless transaction modes so that they can purchase seeds, fertilizers and other agricultural essentials with greater ease.
5.Welfare benefit measures
With the politics surrounding demonetisation being extremely critical to the government, particularly pointing at the difficulties faced by the poor, the ruling party is in an urgent need to devise policies that benefit the poor. This is already evident from the Pradhan Mantri Garib Kalyan Yojana that was announced by Prime Minister Narendra Modi on November 29. As part of the scheme, those with large amounts of unaccounted wealth, can deposit the same with a penalty of 50 percent on it as opposed to tax rate of 85 percent for those who do not opt for the scheme.
Keeping in mind the government’s need to please the poor, the 2017 budget might see a number of welfare measures and pro-poor schemes which could see a surge in social spending expenditures.
The other aspect of benefit measures can take the form of incentives for digital payments. With the rhetoric of a cashless economy taking centre stage in the aftermath of demonetisation, the government has already taken a number of steps to encourage electronic payments. Service tax on payments made through debit and credit cards upto Rs. 2000 have been removed. More recently, Finance Minister, Arun Jaitley announced a list of measures as incentives for digital payments which include cheaper petrol and diesel when paid for electronically, discounts on railway tickets and highway tolls.
Union Budget 2017: Overview
India's Union Budget is an extraordinary occasion and it is frequently a very polarizing discuss with savants from different schools of thought communicating various suppositions. For quite a long time prior and then afterward the spending discourse, media dialogs including different specialists discuss desires and impacts of the Finance Minister's discourse. At that point all of a sudden, the whole media bazaar stops until one year from now.
Union Budget 2017
The 2016 spending plan was the same – there were different desires that did not work out as expected and there were to some degree surprising improvements. A portion of the declarations even drove specialists to term the Union Budget 2016 as a populist, traditionalist and composed particularly to pacify the masses. Before we investigate some of our desires from Union Budget 2017, how about we see what Budget 2016 declarations stood out as truly newsworthy.
Desires from Budget 2017
The Union Budget for 2017-18 will be introduced in Parliament in the principal quarter of 2017 on first Feb. Desires from various ventures and general society have as of now began coming in.
1. Income Tax Slabs and Rates:
This is on top of every citizen’s list of expectations. With the demonetisation announcement in November leading to massive inconvenience for the common man, many are expecting the government to increase the tax exemption slab from Rs 2.5 lakhs to Rs 3 lakhs. There may also be a reduction in the tax rates, which currently stands at:
- 10 % for incomes above Rs. 2.5 lakhs
- 20 % for incomes above Rs 5 lakh
- 30 % for incomes above Rs 10 lakh
3. Promote Cashless Transactions
Taking into account the government’s hints that the entire value of the demonetised notes will not find their way back as cash into the economy, the next budget is also expected to promote cashless transactions. Some of these such as discounts when using cards at toll booths, waiver of merchant discount rates when using debit cards at POS terminal, etc. have already been implemented though for a limited time. Additional benefits to those opting for cashless transactions through credit cards, debit cards and mobile wallets are expected to be part of the Union Budget 2017-18. Additionally, there might also be benefits announced for use of payment bank services that mainly target the unbanked and under-banked sections of society.
4. Boost Agriculture
There have been widespread media reports of farmers being unable to sow Rabi crops due to the unavailability of new currency notes in sufficient numbers. If the reports that large areas of agricultural land have remained unsown are true, food inflation is definitely going to cause a major problem in the coming months. Add to this the fickleness of the monsoon season and the government may be looking at the possibility of a food crisis in the coming months. Keeping this in mind, it is expected that farmers might get some additional benefits as well as greater access to cashless transaction modes so that they can purchase seeds, fertilizers and other agricultural essentials with greater ease.
5.Welfare benefit measures
With the politics surrounding demonetisation being extremely critical to the government, particularly pointing at the difficulties faced by the poor, the ruling party is in an urgent need to devise policies that benefit the poor. This is already evident from the Pradhan Mantri Garib Kalyan Yojana that was announced by Prime Minister Narendra Modi on November 29. As part of the scheme, those with large amounts of unaccounted wealth, can deposit the same with a penalty of 50 percent on it as opposed to tax rate of 85 percent for those who do not opt for the scheme.
Keeping in mind the government’s need to please the poor, the 2017 budget might see a number of welfare measures and pro-poor schemes which could see a surge in social spending expenditures.
The other aspect of benefit measures can take the form of incentives for digital payments. With the rhetoric of a cashless economy taking centre stage in the aftermath of demonetisation, the government has already taken a number of steps to encourage electronic payments. Service tax on payments made through debit and credit cards upto Rs. 2000 have been removed. More recently, Finance Minister, Arun Jaitley announced a list of measures as incentives for digital payments which include cheaper petrol and diesel when paid for electronically, discounts on railway tickets and highway tolls.
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