When the entire nation and even the world is all set to bind up to take a rest for around one week from the 25th December to 1 January 2023, Finance Minister of India and the team along with the finance ministry have been working day and night for the Union Budget 2023-24 that will be represented on 1st February 2023. There are lots of queries, hopes, and expectation – whether to provide relief through tax deduction, increase the amount of varied things, reducing the cost of varied products, health, market, and loan waiver with more concern on varied points. People are feeling the Finance Minister might make some changes in the income tax slabs.
The Last Full Year Budget from Modi Government Ahead of Lok Sabha Election
This will be the last full year budget from the Modi Government ahead of the Lok Sabha election. Experts have their point of view; while analysts in the equity market have already started building their positions according to the expectations from the budget. Different people have different expectations. Some expect the government to keep focused on infrastructure growth and development; while the government may maintain the path of fiscal prudence. There are expectations to fresh reforms and tax benefits.
What Are the Expectations in GDP?
Not to mention the brokerage that expects the government will be able to manage – keeping the full year fiscal deficit within the estimated target of 6.4% of GDP. The government is expected to focus on investment-led growth that will continue to be the government’s objective in place of direct fiscal support to consumption sectors. Experts are also suggesting some changes in the tax structure as it feels the highest tax rate of approx 3% that is supposed to be reduced to 25%. They also suggest that the highest tax rate is supposed to be increased from 10 Lakh to 20 Lakh. It is crucial to improve the purchasing power of individuals.
What Experts Say About Under Section 80C?
It is clear that the Current Limit of Rs 150000 seems quite low that is in Investments Under Section 80C. With the increase in cost of living and inflation, the government needs to look at increasing the limit. If government does so, it will result in double benefits; while persuade individuals to save more and benefit from the lower tax outgo. This step will help increasing disposable income to meet the increase in price of diverse commodities.
Union Budget 2023 Will Be Presented at the Time When World Will Be Expected to Contented with the Geopolitical Uncertainties?
Another notable point is that the Budget 2023 will be presented at the time when the world will be expecting to contend with the geopolitical uncertainties and concerns around slowing growth along with price rises sticking to high levels regardless of the measures taken by the central banks and governments. Experts are considering the global economic uncertainties and a possible slow-down. Experts have also given GDP growth estimates in the range 7.1% during the current time. It may down to 6.1% for 2023-24. In the February, the FM will have to keep the same concern in mind.
What PHD Chamber of Commerce and Industry Says?
To make the budget better and much improved, the Finance Minister has started pre-budget consultation meetings. Industry experts and analysts are joining meetings and providing their suggestions. The PHD Chamber of Commerce and Industry has suggested the government to make maximum GST on varied industry verticals. Experts suggest some changes or to focus on the key points that include enhance consumption, increase capacity utilization in the factories, create employment, enhance the quality of social infrastructure, and strengthen economic growth. There is a lot more to talk about. Let’s see what will be presented on 1st February 2023 in Union Budget. Hope, this budget will bring something for the general public.
Read about Income Tax Saving and Investment Plans