What got cheaper? Union Budget is back.
During the reign of the UPA government, corruption and nepotism were at peak and every section of the society was unhappy.
Welcoming Prime Minister Narendra Modi's plans to "transform" India's economy and his efforts to promote India as a global investment destination, the USIBC said for India to be successful in attracting the worldwide investors, it needs to create a more stable and predictable fiscal regime and address retrospective taxation and legacy cases that remain open.
In December, the government announced it would borrow an additional Rs 50,000 crore in the fiscal year, following the plunge in tax collections after the launch of GST in July 2017. Even the Economic survey says govt needs to focus on employment, education and agriculture in the medium term to ensure robust & inclusive growth.
However, for most non-resident Indians, budget expectations are moderate. It is speculated that govt may come up with a grand plan in this sector.
A prudent budget could also soothe the, which holds a policy review on February 6-7 amid worries it could raise rates in coming months after inflation hit a 17-month high in December, well above its 4 per cent target.
Players in the Fast Moving Consumer Goods sector expect the government to make labour markets more attractive and resume stalled infrastructure projects to create more jobs across sectors. Falling steadily over the past few years, gross fixed capital formation (as a percentage of GDP) in India was 27 per cent in 2016, according to World Bank indicators.
PUSH TO EDUCATION: Education is important for overall development of the country.
But he has to do all this while sticking to the road map of narrowing one of Asia's largest budget deficits, as failing which, India may fall on the wrong side of global investors and credit rating agencies which had late a year ago handed out a rare sovereign upgrade. Choosing this turnover, in the absence of any such evidence, shows the apathetic nature of the Government towards small businesses.
While income tax benefits can be provided to buyers through this Budget, the GST Council nod would be required for lowering the GST rate.
"USIBC members believe that unless resolved, the lack of clarity in the government's approach to taxation risk will undermine progress in other areas of the economy and will continue to damage India's reputation among investors", said the memorandum running into 39 pages.
RELIEF IN OIL SECTOR: People expect that the government will provide relief from rising petroleum prices by reducing excise duty on petrol and diesel.
The Budget presentation kicks off with traditions and rituals where halwa, an India dessert, is distributed among the Finance Ministry staff.
The Budget may see new rural schemes and stepping up of funding towards existing programmes like MNREGA, rural housing, irrigation projects and crop insurance.