12 things to expect from Budget
#1: Marginal changes in the minimum tax-free bracket (Rs 2 lakh now) to reflect higher inflation.
#2: Some changes and increases in the 80C savings limit to boost savings.
#3: Special tax breaks for industry to start investing, including possible quicker depreciation.
#4: Scrapping of some centrally-sponsored schemes and transfer of the resources to states – which will be explained as a push to greater state autonomy.
#5: A restatement of Chidambaram’s fiscal deficit numbers so that the burden of lowering it this year is eased.
#6: A higher disinvestment target than what Chidambaram proposed, thanks to a more buoyant market.
#7: Very few changes to indirect taxes – both excise and customs.
#8: A new deadline for the implementation of the goods and services tax (GST), probably around mid-2015 or 1 April 2016.
#9: Announcement of a new Direct Taxes Code effective from 1 April 2015 – with details to come later.
#10: Higher allocations to education, skill-building, health, and urban schemes. All of Modi’s pet projects – toilets, rural housing, roads, special manufacturing zones - will find a mention in terms of intent, and there will be token allocations, but nothing major. The money and actual details will come later
#11: Possible announcement of a changed, reduced, role for the Planning Commission, with the finance ministry itself being the nodal agency for dealing with state plan outlay. Maybe, even a scrapping of the 12th plan, with focus shifting to annual plans. The distinction between plan and non-plan outlays may be given up, and revenue and capital spending being the only distinction.
#12: NREGA and Land Bills will be tweaked to make them more pro-growth, pro-infrastructure development. more
#2: Some changes and increases in the 80C savings limit to boost savings.
#3: Special tax breaks for industry to start investing, including possible quicker depreciation.
#4: Scrapping of some centrally-sponsored schemes and transfer of the resources to states – which will be explained as a push to greater state autonomy.
#5: A restatement of Chidambaram’s fiscal deficit numbers so that the burden of lowering it this year is eased.
#6: A higher disinvestment target than what Chidambaram proposed, thanks to a more buoyant market.
#7: Very few changes to indirect taxes – both excise and customs.
#8: A new deadline for the implementation of the goods and services tax (GST), probably around mid-2015 or 1 April 2016.
#9: Announcement of a new Direct Taxes Code effective from 1 April 2015 – with details to come later.
#10: Higher allocations to education, skill-building, health, and urban schemes. All of Modi’s pet projects – toilets, rural housing, roads, special manufacturing zones - will find a mention in terms of intent, and there will be token allocations, but nothing major. The money and actual details will come later
#11: Possible announcement of a changed, reduced, role for the Planning Commission, with the finance ministry itself being the nodal agency for dealing with state plan outlay. Maybe, even a scrapping of the 12th plan, with focus shifting to annual plans. The distinction between plan and non-plan outlays may be given up, and revenue and capital spending being the only distinction.
#12: NREGA and Land Bills will be tweaked to make them more pro-growth, pro-infrastructure development. more
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Good Points.Hope the government finds a way to fund infrastructure projects.Stalled projects are revived.Timeframe for reviving the power sector more
Jun 28
D Dear sir, You have brought very good points. As far as income tax js concerned the expectations are very high with people. I have a suggestion .the present limit can be enhanced to Rs 4 lakhs. 10 % tax up to Rs. 8 lakhs 20% upto RS. 12 lakhs and 30% thereafter. For savings the budget should encourage middle class and salaried class. M.Byravan On 23 Jun 2014 21:59, "Sheetal Jain" wrote: > more
Jun 25
All the points are perfect except No4 as the States are misusing the funds and the benefits are not reaching the concerned. Therefore the centrally sponsored schemes are to in the hands of centre only. more
Jun 24
A lot of reforms are waiting their turn form implementation now or after, the magic is there is no money to know money where it lies to give little relief to tax payer & a consumer. Too many items are on them menu to eat but the stomach has a limited space. Planning should not be a place of arrangement to hyphen of a major part of allocations to personal a/c, We have resources but the processes & systems are a blockade to normalize the established practices with all of us for quick money for faster delivery we say fraud or corruption. We need innovative suggestions to solve the quiz is the need of the our. more
Jun 24
