Finance Minister Nirmala Sitharaman on Monday will deliver her promised budget like no other that is expected to provide relief to the pandemic-hit common man as well as focus more on driving the economic recovery through higher spending on healthcare, infrastructure and defence amid rising tensions with neighbours.
As India emerges from the COVID-19 crisis, the ninth budget under the Modi government, including an interim one, is widely expected to focus on boosting spending on job creation and rural development, generous allocations for development schemes, putting more money in the hands of the average taxpayer and easing rules to attract foreign investments.
Here are some of the key things to watch out for:
We can see a Budget which is a budget like never before. 100 years of India wouldn’t have seen a Budget being made post-pandemic like this.
Finance Minister Nirmala Sitharaman during her address to the CII Partnership Summit 2020 on January 5.
Rs 1,19,847 crores January GST collection, the highest monthly mop-up so far. Came as a sentiment booster a day before the Budge.
No radical change in income tax slabs, but expect some tax breaks for the salaried class.
Budget may increase tax rebate under Section 80C and 80D from Rs 1.5 Lakh to Rs 2 Lakh.
Standard deduction limit likely to be doubled to Rs 1 lakh increasing the exemption for health expenses.
Higher tax rebate likely for first-time home buyers.
Government to fix some anomalies in the National Pension Scheme with regard to income tax benefits.
Covid-19 cess to raise revenue on the cards.
Increasing tax on long-term capital gains from equity and property is a possibility.
Further increase in import duty on sin goods and luxury items.
Spending more on health infrastructure is a given, by how much more is the question.
Budget is likely to set up a separate bank for infrastructure sector.
More privatisation drive of PSUs, privatisation of electricity distribution expected.
Substantial increase in defence outlay to deal with a belligerent China.
Atmanirbhar overdrive to push indigenisation and accelerate growth.
(With PTI Inputs)