The much coveted event of the financial year 2016-2017, Union Budget 2017 by the Central Government is to be presented on February 1st , 2017. Indians all across the globe have expectations from the Union Budget 2017 to have a favourable effect on them.
Bidding farewell to the age old tradition of presenting the Union Budget on the last day of February, Union Budget 2017 is a move to speed up the implementation of schemes which are projected in the budget. The Prime Minister urged the states to delineate their plans, according to the new dates of the budget and take full advantage of this move. The Finance bill can be passed by and implemented from 1st April, 2017. Until now, it was being passed in May and implemented only from June.
Leverage of having an early Budget
With the change in dates of presenting the Union Budget, there is expectation of quick implementation as well. This advance presentation of the Union Budget aids legislative approval for annual spending plans and tax collections, all these can be completed before the beginning of the year on 1st April.
There is also a decision to merge the Railway Budget with the Union Budget 2017,breaking the colonial practice since 1924. Railway budget was presented separately to focus separately on the importance of this infrastructure. Apparently these two budgets are merged by the proposal of Railway Minister Suresh Babu.
Expectations from the Union Budget 2017
Government needs to concentrate on the big fishes for the collection of direct and indirect taxes and post demonetization banks in India has left of liquid cash, there is a general expectation to slash the interest rates on the housing loans, business loans.
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| Union Budget 2017 |
Bidding farewell to the age old tradition of presenting the Union Budget on the last day of February, Union Budget 2017 is a move to speed up the implementation of schemes which are projected in the budget. The Prime Minister urged the states to delineate their plans, according to the new dates of the budget and take full advantage of this move. The Finance bill can be passed by and implemented from 1st April, 2017. Until now, it was being passed in May and implemented only from June.
Leverage of having an early Budget
With the change in dates of presenting the Union Budget, there is expectation of quick implementation as well. This advance presentation of the Union Budget aids legislative approval for annual spending plans and tax collections, all these can be completed before the beginning of the year on 1st April.
There is also a decision to merge the Railway Budget with the Union Budget 2017,breaking the colonial practice since 1924. Railway budget was presented separately to focus separately on the importance of this infrastructure. Apparently these two budgets are merged by the proposal of Railway Minister Suresh Babu.
Expectations from the Union Budget 2017
- Switch to new Financial Year, financial year from 1st Jan till 31st Dec from the current 1st April till 31st March concept that we follow in India.The committee headed by the Chief Economic Advisor ,is studying the proposal to change the financial year, considering the factors such as agriculture, southwest monsoon,receipts and expenditure of the Central and State Government, changes that will be affected the international trade.etc..,
- Major breakthrough to digitization, the majority of the transactions are going to be cashless, so all instruments & internet connectivity which helps with digitalization needs to be tax free.
- Demonetization has hit business in the Oct-Dec quarter massively and when the Government wants to us to do cashless / minimum cash transactions in business parlance,
traders/businessmen in the small sector are expecting cuts in the indirect tax rates and slabs. - Salary class is always been very prompt in paying the direct tax to the exchequer. This class of people has been very unfortunate as Tax is deducted at the source of income. With the rampant inflation level in the country, although now it is showing the declining trend , Salary class in the bracket of 2.5lacs to 10 lacs are expecting the relief in direct tax rate and increasing the tax threshold limit.
- Major boost Startups & Make in India concept tax holiday should be provided to encourage this sector. As most of the startups are struggling to get the capital funded for their business and many a time initial investments soured through own funds. Apart from these, if this sector increases the number of people employed, there should be additional relief in the form of cut in the tax rates. This push helps in tackling unemployment and startup concepts.
- Global warming is the term which we get to hear not only in our country ,but across the globe. To cheer up this concept, Government should encourage environmentally viable projects like,Solar Energy , Organic Farming, Organic Foods, Handmade items, and garments which uses natural dye, organic manure Industry, pollution control equipment, etc., There is already awareness about these sectors in the public, but additional hike from the banking sector and the tax structure is expected in the Union Budget 2017.
- Housing for all , Government can pump in money in the housing sector by lowering the interest rate for the housing loan, for those who are buying the house for the first time / for the first house. Interest rates and income tax exemption can be increased or can introduce slab system for each additional house acquired.
Government needs to concentrate on the big fishes for the collection of direct and indirect taxes and post demonetization banks in India has left of liquid cash, there is a general expectation to slash the interest rates on the housing loans, business loans.
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