Being an economics student the economic situation of my country affects me a lot as more than anyone. And as a citizen of India, without the country’s economy being stable I can’t get a good sleep.
A Budget is something which allows the government to regulate the imposition of taxes in various sectors.In a country like India with deep cultural,religious and economic diversity it is extremely important for the government to allocate the resources wisely especially in a such an economic slow down phase. Therefore, a well planned budget is of utmost importance for any government to ensure economic stability and growth.India’s GDP growth rate slipped 5% in the first quarter of 2019-20, the lowest in six years.
With barely one day to go for Indian budget 2020 ,everyone is looking upto the budget speech . The Indian Economy is not in the best shape at the moment ,which makes Nirmala Sitharaman’s second budget all more crucial. People want her to announce measures to boost the economy and keep various sections of the society happy.
The Common Man has been hoping for a cut in personal tax rates for quite some time now. a curious India awaits what could be a ‘Big Bang Budget’.Many people want the government to announce various taxation-related measures so that people could spend more. The key expectation is increasing the threshold limit for the minimum amount not chargeable to tax,from 250000-500000.There is also a list of allowances which need to be re-looked of which Leave Travel Allowance (LTA) one such allowance.With Global travel now becoming affordable for even the common man, foreign travel should be considered by the government for providing the benefit of LTA.Good infrastructure is key to the growth of the economy and therefore the authorities should re-look at introducing the deduction for investment in infrastructure bond. Consumption expenditure can see a rise only when people are left with large chunk of disposible income. The enhancement of the basic exemption limit has been long awaited which would increase the disposable income which would make the common mam to invest in education, health care, housing etc. Real Estate and infrastructural development are considered to be the drivers of economic development, so budget 2020 should come up with solutions to boost the real estate sectors.Deduction under section 80C of income tax act provide various types of payments made by the taxpayer which are eligible for relief such as PPF, housing loan repayment, fixed deposits etc. However limit is very low. So in order to boost such investments expanding the limit is need of the hour.
Budget 2020-21 will be presented on February 1,Saturday and the economic survey will be out on January 31st. Nirmala Sitharaman faces one of the toughest balancing acts of her career and the numbers before her are not very encouraging.
She will be judged for the choices she makes in the budget. The challenge before her is to restore one of the twin engines of Growth–consumption and investment. If the finance minister misfires on February 1st, it will send the markets to a tailspin. The markets are currently riding high anticipation of the minister taking forward the reform agenda. If the budget doesn’t live upto the expectations a big fall can be seen in the equities. Aspirations of the common man are soaring high following repeated announcements by the Finance Minister to provide relief to individual taxpayers. Hence it is a matter of time whether expectations of the common man will be met or not.
We all will know if the Finance Minister will bite the bullet this time around.
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