Budget 2023 Expectations Highlights: The Union Budget for financial year 2023-2024 is set to be presented in the Parliament by Finance Minister Nirmala Sitharaman on February 1. This is the Finance Minister's fifth straight Budget speech and like the previous two will shirk the paper format for digital medium. Notably, this is also the last full Indian Budget before the General Elections in 2024. Most experts believe Budget 2023 will take a balanced approach towards fiscal consolidation
The common man is worried about inflation because of a looming global economic slowdown and a potential resurgence of Covid-19. Layoffs and slowdown in US and Europe is keeping the mood of the nation cautiously optimistic. People expect a rise in the basic exemption limit in income tax.
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As part of its wishlist for Budget 2023, India Cellular and Electronics Association (ICEA) said it wants rationalisation of duties on parts and components of mobile phones and sub-assemblies.Some of the smaller tariffs should be done away with, the industry body said, while addding that all inputs duties on "mechanics"should be removed.
The Basic Customs Duty (BCD), levied on high-end phones, should also be eased, ICEA suggested. The customs duty of 20 percent, charged on high-end phones, should be continued only with a cap of Rs 4,000 per device, it demanded, as per a PTI report.
- Neeraj Bansal, co-head and COO-India Global, KPMG India, said the Credit Linked Subsidy Scheme (CLSS), which has benefitted 2.54 million, should be maintained in order to encourage consumers to buy affordable homes.
- Bansal also said the price cap of affordable housing requires a revision to further attract a broader spectrum of homebuyers.
- More tax breaks are specifically required from the perspective of the buyer, he said.
- The government should think about reintroducing the Section 80IBA registration deadline for affordable housing projects, benefitting builders, he added.
- Bansal also said in order to lower the rising cost of raw materials, which will assist to moderate prices, the budget can also take into account rationalising the goods and services tax rates for construction materials like steel and cement.
- Another suggestion includes the overall size of the Special Window for Completion of Construction of Affordable and Mid-Income Housing Projects (SWAMIH) fund, established under the Special Window for Affordable and Mid-Income Housing, can be increased to Rs 50,000 crore.
The government is expected to announce in the forthcoming Budget steps to further strengthen the startup ecosystem in the country and address inverted duty issues in certain sectors to promote domestic manufacturing, official sources said.
Fiscal incentives under the production linked incentive (PLI) scheme to some more sectors are also likely to be announced in the Budget, which will be presented on February 1.
Besides, the government may consider providing funds to infrastructure projects approved by the Network Planning Group (NPG), constituted under the PM Gati Shakti initiative, they said.
- Thefintechsector's wish list for Budget 2023 includes tax incentives, regulatory clarity regarding acceptable business models in the Web3 platform, and loosening of restrictions on merchant discount rates.
- Tax incentives for businesses that support the digitization of financial services.
- Tax incentives associated to mergers and acquisitions (M&A) might result in the consolidation of a highly fragmented industry.
- Relaxed rules around Merchant Discount Rate (MDR)
- Tax benefits for Web3 based platforms would prevent the brain and capital drain that has recently been observed in digital assets, non-fungible tokens, and the Web3space.
-Synchronisinglegal framework for data privacy across different regulatory authorities to support efficient compliance
India Cellular and Electronics Association (ICEA)has batted for rationalisation of duties on parts and components of mobile phones and sub-assemblies, saying some of the smaller tariffs should be done away with, while all inputs duties on ‘mechanics’ should be removed immediately.
The industry body has also suggested that the government should ease the Basic Customs Duty (BCD) on high-end phones.
The 20 percent customs duty on high-end phones should be continued only with a maximum BCD pegged at Rs 4,000 per device, the association has said in its Budget wishlist.
The funds for the Ayushman Bharat Pradhan Mantri Jan Arogya Yojna (AB-PMJAY) should be used exclusively for the private sector for strategic purchase and creating a retainer system and not for critical gaps in the funding of government hospitals, the IMA has suggested.
In its proposal to the government for consideration in the upcoming Union Budget, the Indian Medical Association (IMA) has said deficit funding is the most important cause behind the lack of penetration of the AB-PMJAY.
If the funding has to be raised to at least the CGHS (Central Government Health Scheme) level, then the amount required is around Rs 1.6 lakh crore, the doctors' body said.
Sectors like infrastructure, railways, defence, public sector undertakings, and renewables are expected to witness an increase in spending by the government.
-Multiple US venture capitalist firms with their investments in India haveexpectationsfrom the upcomingUnion Budget of growth and development of the startup ecosystem in the country.
-ArunKumar, the managing partner of Celesta Capital says, “As a US-based venture capital firm investing in India, we are keenly interested in policies and initiatives that will support the growth and development of the startup ecosystem in the country.”
-“Signals and allocations in the Budget that further the growth of new ventures based on innovation and entrepreneurship would be particularly welcome,” Kumar said.
-The Finance Minister might rejig the tax slabs in the upcoming Union Budget of 2023, which may hint of a gradual movement towards an exemption-less tax regime in future.
-Multiple experts have demanded the inclusion of standard deduction as well as housing loan interest in this new regime.
With the mop-up falling short this year, the Indian government is seen setting a conservative divestment target for fiscal 2024. The Indian government has set a divestment target of Rs 65,000 core for 2022/23.Read the full report here
For years, finance ministers in India were photographed walking into parliament with a briefcase before the annual Budget presentation. All that changed in 2019, when Finance Minister Nirmala Sitharaman ditched the Budget briefcase for a bahi khata. Read the full story here
