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Union Budget 2023 is scheduled to be tabled in Parliament on Wednesday, February 1, and the country waits with bated breath for Finance Minister Nirmala Sitharaman to make favourable announcements for various sections and sectors in India. Like every year, the most common expectation, which cuts across sections of the population, is relaxation in taxes. Further, Budget 2023 is expected to be growth-oriented with focus on technological advancement, widespread allocation of resources, bridging the digital divide and addressing the security concerns of the virtual world. There have also been talks about making major changes in each sector to improve the revenues and the employment graph of the country.
Prime Minister Narendra Modi on Tuesday said that the Union budget will attempt to meet the hopes and aspirations of the common citizens amid the unstable global economic situation. “Our Finance Minister will present one more Budget before the country tomorrow. In today’s global circumstances, not only India but the entire world is looking at India’s budget,” said PM Modi.
The budget session, which began on Tuesday, will take place in 27 sittings till April 6 with a month-long recess to examine the budget papers. The first part of the session will conclude on February 13. Parliament will reconvene on March 12 for the second part of the Budget Session and will conclude on April 6.
Here are the expectations from the Union Budget 2023:
Tax SOPs
Recent statements made by Sitharaman about being aware of the “pressures of the middle class” have fuelled hopes and speculations that she may give taxpayers some benefits. There are no free lunches, though. However, a 15 per cent increase in tax revenue is anticipated for the next year, according to economists at Yes Bank lead by Indranil Pan. Any reduction of rates for the lower income groups will be balanced by increasing the cess/surcharge for the upper income brackets, Bloomberg quoted the economists as saying.
According to The Economic Times, she may potentially increase import taxes on goods like jewellery, high-end electronics, private aircraft, and helicopters to promote indigenous manufacturing.
Meanwhile, telecom brands anticipate that the licence fee may be reduced from 3 per cent to 1 per cent to merely cover administrative expenditures in terms of regulatory charges.
Social Sector
As India’s unemployment rate has risen to a 16-month high of 8.3 per cent in December 2022, the country would expect initiative to generate jobs. In the post-Covid economy and with the current scenario of job cuts, India should look to introduce schemes that promote small businesses and entrepreneurs, who will further go on to provide employment opportunities for others. The government could also launch tech-based training programmes to help citizens gain new-age skills.
Manufacturing And Export
India is presenting itself as a rival to China in the global supply chain as the world adopts a ‘China plus policy’ and turns to other alternatives. In such a scenario, businesses that want to open factories anticipate greater financial incentives from the government. According to a Hindustan Times report, production-linked incentives may be expanded to industries like toys and shipping containers in the budget.
The budget also has to include measures for bettering export subsidies for exporters. By doing this, India won’t fall behind in global trade. Along with full automation and the adoption of blockchain technology, businesses also increasingly need to ensure sustainability in supply chain management.
Technology
Over the past few decades, significant expenditures have been made in the technology sector to support R&D and innovation. The advent of 5G, AI, and related technology, including AR, VR, AV, cloud computing, and related, has opened doors for foreign investment and increased manufacturing capacity in the nation.
While the tech sector is expected to grow, the EdTech sector is looking to reduce the digital divide and expand the development reach to Tier 2 and 3 cities focusing on upskilling and research. Some of their requirements include a policy that promotes start-ups, improved internet connectivity and strict data privacy rules.
Telecom
The telecom sector like the tech sector is in full throttle, energizing multi-directional initiatives like the introduction of 5G, the new draft Telecom Bill, rationalization of Adjusted Gross Revenues (‘AGR’) or 100 per cent FDI through the automatic route. Cybersecurity remains a major concern and a topic of debate for many.
Start Ups
India has emerged as the third largest start-up ecosystem in the world, after the US and China. Experts believe that between the year 2020 and 2030 will be the “entrepreneurial decade” for the country. Owing to such high interest and investment avenues; it is only fair the budget expectations are on the positive end of the spectrum.
One of the most important expectations of the startups is to increase the GST exemption slab for them from the current 40 lakhs to 10 crores. Furthermore, the sector also expects the government to reduce the minimum alternate tax (MAT) from 15 per cent to 9 per cent.
(With ANI inputs)
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