5 things to expect from FM Nirmala Sitharaman's first budget
5 things to expect from FM Nirmala Sitharaman's first budget
Finance Minister Nirmala Sitharaman will present her first Union Budget today (July 5, 2019) at 11:00 am. There are several expectations that have been made with this first budget of Modi 2.0 after the landslide victory of Prime Minister Narendra Modi in Lok Sabha Elections 2019.
India’s first full-time female Finance Minister Nirmala Sitharaman is expected to give some tax relief in the much anticipated Union Budget.
This budget plays a very crucial role for Modi- led government as India's GDP or gross domestic product growth slipped to 5.8 per cent in the March quarter which is the slowest pace in 20 quarters.
Some economists also suggested that Finance Minister is likely to focus on some major fields which would spur the growth without squeezing expenditure much.
From fiscal deficit to the rural economy, these things to be expected from FM Nirmala Sitharaman maiden Budget 2019:
1. Fiscal deficit
In the Economic Survey 2018-19, it has come to notice that India’s general fiscal deficit for the financial year was at 5.8 percent, which was tabled in Parliament on July 4.
As the government unlikely to meets its revenue collection which was assumed in the interim Budget. The estimated reports of Controller General of Accounts, the total receipts of the government in 2018-19 witnessed a shortfall of Rs 1.46 trillion, compared with the revised estimates of Rs 14.8 trillion for the same fiscal year.
2. Benefit to middle-income taxpayer:
Sitharaman’s maiden budget to give some relief to the middle-income taxpayer. Earlier, in the interim budget, the Modi government promised exemption in tax for the middle class. Therefore, tax exemption for the middle is likely to be increased so that consumption is increased in the household.
3. How to deal with water crisis and support to the rural economy?
As Modi-led government has already announced the PM-KISAN scheme which will support the farmer’s income, now, some more steps are likely to be taken by the government to revive the rural demand.
Also, the government will take some measure steps for the conservation of water under the new water ministry.
4. Creating employment for the nation:
As Government is targetting the youth of the nation and recently, Railway ministry has also announced about the releasing over 90,000 jobs in RPF. Therefore, more expectations have been made by an analyst that the Modi government will release more vacancies in several sectors to meet the needs of the youths.
5. Medical Scheme:
Private hospitals in the country are hoping that the government is likely to increase spend on healthcare like Ayushman Bharat and sops for setting up hospitals in tier 2, tier 3 cities.