Nirmala Sitharaman will present her first budget on Friday, here’s what you can expect

New Delhi L Finance Minister Nirmala Sitharaman today will announce his first budget, citing Prime Minister Narendra Modi’s priorities in his second term after a major election victory. Nirmala Sitharaman, India’s first indian finance minister, is expected to increase spending and provide tax relief in the projected Union budget. The budget presents numerous challenges for the re-elected government of the National Democratic Alliance (NDA), ranging from slowing the economy to low spending and reducing tax collection. Economists say the finance minister should publish measures that encourage growth without much effort in spending.
Here are 10 things you can expect in the budget:
Ms. Sitharaman could cut income taxes for small and medium-sized businesses as well as personal ones to revive middle-class spending while pulling some tax exemptions.
The budget comes at a time when India has lost its first place as the fastest growing economy in the world. Indian GDP or gross domestic product growth fell to 5.8% in March’s quarter – the slowest in the 20Q quarter. The primary focus of the budget is expected to be ways of boosting economic growth.
Many analysts expect that the structure of personal income tax will not be adjusted, as it may be contrary to the government’s intention to expand the taxpayer base. However, some expect tax implications for super-rich, such as the reintroduction of a long-overdue inheritance tax.
Ms. Sitharaman must also take into account the difficult goal of disinvestment in a slowed economy. The government wants to increase Rs. 90,000 crore from disinvestment in 2019-20, which is 5.88% of Rs. 85,000 crore received the previous year.
The Ministry of Finance can also focus on steps to increase employment and exports. It can consider fiscal incentives such as interest rate subsidies and lower tax rates for up to a certain threshold for small businesses.
In its Economic Review 2019, prepared by new chief economic advisor Krishnamurthy Subramanian, the government predicted GDP growth or gross domestic product at 7 percent in the financial year 2019-20.
The government is likely to hold a modest increase in defense spending in the budget due to limited government funding, according to Reuters officials who said this in a report earlier this week. This would further postpone the long-planned military modernization program.
“The focus of the budget will be on strengthening domestic consumption, addressing the rural crisis and supporting small producers,” Gopal Krishna Agarwal, a BJP spokesperson for economic affairs, told Reuters.
Any announcements aimed at resolving the crisis in the sector of non-banking financial companies (NBFC) – also known as the shadow banking sector – will be carefully monitored, analysts say. Last year, the government took control of infrastructure leasing and financial services after its malfunctioning caused fears of financial sector infections.
In preliminary budget announcements in May, the government has announced a large number of announcements for building perceptions of the public. These measures included the RS. 75,000-crore income guarantee scheme from small farmers and full tax rebate for individuals earning up to Rs. 5 lakh a year.

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