In the context of FM Sitharaman's statement which said the upcoming Budget will “set the template” for the next 25 years, sources expect the next fiscal's Budget may contain people-centric proposals.
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Budget 2023 expectations highlights: Experts expect higher infra spending, the budget to enhance disposable income of middle class households, and list out what the key priorities should be for the government in the upcoming budget.
Budget 2023 may see India stepping up on capex with major thrust on Gati Shakti and National Infrastructure Pipeline (NIP) targets and National Infrastructure Pipeline (NIP) targets. Nirmala Sitharaman's last full Budget before elections, may also have dedicated allocations for specified large infrastructure projects such as High-Speed Rail, Jal Jeevan Mission, Bharat Mala, Sagar Mala, Smart Cities, and Inland Waterways development.
Address demand side issues
India Inc expects the FM to address demand-side issues at a time when the world may soon shift their sights from taming inflation to keeping recession at bay. "Creating positive sentiment and consumption should be a priority and I think the government is on track for that," says Rajesh Jejurikar, executive director (auto & farm sectors) at Mahindra & Mahindra.
A shot in the arm for healthcare
Healthcare has been eyeing more budgetary support from the government. Apollo Hospitals wants reforms in GST for the sector. GST at present is applicable on medicines and implants, and from July last year, it is also imposed on hospital rooms that cost more than Rs 1,000 per day. "We should have GST reforms for healthcare...Now that we have an opportunity, give us infrastructure status," said Shobana Kamineni, executive vice-chairperson of Apollo Hospitals.
Push for EVs
Budget 2023 could see a push for adoption of electric vehicles in India. The government is expected to offer tax rebate on buying an electric vehicle by another two years till 2025, making it convenient for potential buyers to switch to the cleaner fuel mobility instead of an internal combustion one.
For taxpayer
For the taxpayer, a hike in the deduction limit of Rs 1.5 lakh/year under Section 80C may see a revision. The Centre is expected to increase this limit to at least Rs 2 lakh/year or Rs 2.5 lakh this year.Additionally, Budget 2023 may see a hike in the basic exemption limit under Income Tax Act to Rs 5 lakh.
In the context of FM Sitharaman's statement which said the upcoming Budget will “set the template” for the next 25 years, sources expect the next fiscal's Budget may contain people-centric proposals.
Read here.
HDFC Bank chairperson Atanu Chakraborty lists out his key expectations from the Budget, and speaks on what the key priorities should be for the government.
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The worst of inflation is behind us, but consumers certainly need more money in their hands to drive FMCG (fast moving consumer goods) demand, believes Saugata Gupta, managing director and chief executive officer of Marico Limited.
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From fiscal deficit to capex, economists predict Budget details.
Moneycontrol spoke to economists and zeroed in on these numbers and how they will dictate the government's budget announcements on February 1.
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The government has set the stage for lowering its food subsidy outgo in the next financial year by deftly managing the withdrawal of the pandemic-era free foodgrain scheme.
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Moneycontrol conducted a survey of 30 market experts, including fund managers, analysts, heads of research, chief investment strategists and officers, to get responses on some important questions relating to the upcoming Union Budget.
Here's what the market thinks about Fiscal Deficit.
Prior to the Parliamentary Budget Session, the government has called an all-party meeting onJanuary 30, according to a report.
Kotak Mahindra Asset MD Nilesh Shah speaking with Moneycontrol says the trend of doubling on infrastructure must continue.
---Budget comes in the backdrop of five fiscal deficits, which need to be reined in
--- Thrust on capex to continue because that has yielded dividends
- Push for pharma-related policies, and resolution in MSP (minimum support prices for farmers), which because of inflation may need some correction.
-- Correction in personal income tax
A Balasubramanian, MD & CEO, Aditya Birla Sun Life AMC, on expectations from Budget 2023 said the focus will be on growth, with reasonably good amount of money being allocated towards Capex. On direct taxes, he said that the government can give some relief to the salaried class that will help in increasing the disposable income leading to more spending.
He expects the limit under section 80C to go up to Rs 2,50,000 from the current Rs 1,50,000.
The Centre most likely will issue a record Rs 15.5 lakh crore worth of bonds in 2023-24, which is Rs 60,000 crore more than the budget estimate for current year and over Rs 1 lakh crore higher than the actual amount that is set to be borrowed.
According a poll by Moneycontrol, Nirmala Sitharaman may go for a fiscal deficit target of 5.9 percent of GDP for next year, down 50 basis points from this year. Goldman Sachs says this cut will be "fully driven by a reduction in food and fertiliser subsidies."
The clamour for removing some of the deductions from Section 80C of the Income Tax Act is increasing as experts feel that it has become cluttered and not very practical for tax planning. Experts feel that the section needs a review as the last one happened in 2014 and incomes have surged since then along with other contributions like provident fund. This has shrunk the space within 80C.
