New Delhi
Not reform-oriented, the Union Budget is going to be Janmohini this year, as assembly election in five states are knocking the door. Naturally, union finance minister Nirmala Sitharaman has the responsibility to win the hearts of the people through the budget. There will be many surprises in the budget. Roads, railways, health are the three issues that are likely to be emphasized in the development of the infrastructure of the election headed states. Last year center allocated huge amount of money for the construction of national highway in Tamil Nadu, Kerala and Assam including the then election headed state West Bengal. Now it is expected that the same kind of reflection will be seen again.
In addition to managing the maximum vote, the Union Budget will also focus on reversing the stagnant economy due to the Corvid 19 situation. And in order to revive the economy, the market economy must b
e strengthened by making people have cash in their hands. In view of this, it is safe to say that there is almost no possibility of imposing additional tax burden on the middle class in the case of income tax. The country's economic circles think that there will be no significant change in the current slab of income tax. Allocations for infrastructure development, health, education and above all social projects will be increased in the budget. In the recent conflict with China, our relations with Pakistan are not good. In view of all these, the budget will also give importance to the defense sector. In addition to making India self-sufficient in defense, the allocation for purchasing advanced military equipment from abroad is also set to increase.
The Union Budget may also announce some steps for the financing of the states. Corona has almost 'zero' financial reserves in most of the states in the country to deal with the situation. On top of that, from June this year, the deadline for compensation payment of GST from the center is coming to an end. Opposition states, including Bengal, have already demanded that the compensation be extended for another two years. According to sources in the union finance ministry arrangements are being made in the budget to make it easier for the states to get loans even though the center is hesitant to extend the GST compensation period.
For the past few weeks, the finance minister has been holding regular meetings with all the industrial houses and chambers of commerce. The Chamber of Commerce has suggested to help the MSME sector through the budget, such as housing, Prime Minister's Ujjwala Housing Scheme, medium and small scale industries and also to increase the allocation in the health sector. It is learned that the Union Finance Minister has assured that all these issues will be taken into consideration in the budget. There are also fears that the central government will face a fiscal deficit if the budget is to be made public. But the center is not particularly thought of. Even if the vote is over, the political circles think that the road to increase the price of petrol and diesel is still open.
Post a Comment