Wednesday, July 9, 2014

Budget 2014: Expectations

As the 10th of July approaches, most Indians are looking forward for the budget by our new Finance Minister, Mr. Arun Jaitely.
Expectations are very much high from the party in power, as they were given such a support, which has not been witnessed in India over 3 decades. Every Indian hopes for 'Ache din' for them after the budget, so the expectations are bound to reach sky high.
However, we have been advised by a Reuters survey to not to expect any major changes to taxes.
Nevertheless, there are still few major expectations from the budget and some of them have been listed below.
  • Free interstate and international movement of goods.
  • Promotion of electric and hybrid vehicles.
Financial Services:
  • Raising ceiling on FDI in Insurance from 26% to 49%.
  • Tax incentive for promotion of affordable housing.
  • Tax exemption on Long Term Infrastructure Bonds.
  • Increase in tax exemption for construction of hospitals.
  • Simpler tax system. (Eg- GST).
  • Tax incentives for promotion of investment in R&D
  • Healthcare expenditure to reach 8% in next 5 yrs.
  • Open more projects to FDI.
  • Road map for attracting long-term debt for infrastructure project .
  • National Fund for Infrastructure Projects.
Natural Resources:
  • Reduce barriers in transportation of metals and minerals.
  • Continuation of tax benefits for capital expenditure under 35AD.
  • Auctions for allocation of minerals.
  • Import duty on Crude oil.
  • Deregulation of electricity prices.
  • Tax Incentives for promotion of investment in non traditional energy.
Real estate:
  • Increase in tax deduction limit on interest on housing loan.
  • Grant industry status to the real estate sector.
  • Single window clearance for speedy approval of projects.
  • Implementation of GST.
  • Ease of FDI in retail.

So yes, we have our expectations high from this budget, as per the promise of 'Ache din'.
Major expectations revolve around the idea of introduction of GST and ease of FDI in India. However since these two have been subjected to much debate since a couple of years, making them part of the budget would be a bold decision on the part of our Financial Minister.
But still, these are just expectations.
We don't know what it will bring for us.
So stay updated for the budget on 10th of July as financial world will definitely get affected, and so will be us.
I hope you found it informative.
Please follow for more updates.
Source: Economic Times

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