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  1. Budget 2018: The countdown begins; five things that may be on Arun Jaitley’s top agenda

Budget 2018: The countdown begins; five things that may be on Arun Jaitley’s top agenda

The countdown to last full Budget of the present NDA government has begun as Finance Minister Arun Jaitley is likely to present it on February 1, keeping the tradition that was started in 2017. Here are five things that may be on top agenda for the Budget 2018.

By: | Updated: January 19, 2018 6:27 PM
parliament in 2017, incidents in parliament in 2017, 2017 incidents in parliament, parliamentary proceeding in 2017, 2017 parliamentary proceedings The countdown to last full Budget of the present NDA government has begun as Finance Minister Arun Jaitley is likely to present it on February 1. (Image: PTI)

Budget 2018: The countdown to last full Budget of the present NDA government has begun as Finance Minister Arun Jaitley is likely to present it on February 1, keeping the tradition that was started in 2017. Experts expect this Budget to be a populist one due to the upcoming elections in eight states this year and the 2019 General Election. Arun Jaitley has dropped several hints on what’s going to be his priority for this Budget.

Here are five things that may be on top agenda for the Budget 2018:

Infrastructure: Economic Affairs Secretary Subhash Garg recently said that the government is planning to dedicate a large part of budget towards capital expenditure on infrastructure and will push for foreign investments in the sector. Arun Jaitley, too, said that the focus of the government next year will be on the momentum of infrastructure creation. Arun Jaitley said that while highways and ports have shown satisfactory results, infrastructure development in railways needs to be hurried. “Railway station, quality of trains, proposed bullet train, all need to be strengthened”.

Farmers: Various media reports suggested that the Budget 2018 would be focused on rural population and farmers. India’s government will likely increase funding for the farm and rural sectors in the budget for the coming fiscal year, Reuters reported quoting finance ministry officials. “The government can’t afford farmers’ anger anymore, and will try to boost the economic growth and pump in more funds in the farm sector,” the official said. “It will not be a populist but a pragmatic budget.”

Bank recapitalisation: The government has already announced a massive Rs 2.11 lakh crore massive bank recapitalisation plan, of which, Rs 76,000 crore will come from budgetary allocations and market raising. “We want to ensure the ability of banks to support growth by improving their lending capacity. If we want to formalise the economy, we have to strengthen the bank,” Arun Jaitley said while listing his three key priority areas for the next year.

Employment: The Narendra Modi government is likely to focus more on creating employment and employment-related funding. According to media reports, the government is likely to provide India with its first National Employment Policy (NEP) to address the crucial issue of job creation.

Corporate tax cut: Arun Jaitley, in his Budget 2015 speech, had proposed lowering the corporate tax rate from 30% to 25% over a period of four years. Before the 2018 Budget, which is the fourth and the last full Budget of the present government, the pressure to act on what was promised in 2015 is mounting — especially after the United States passing the law to cut corporate tax from 35% to just 21%. Corporate India, which met Arun Jaitley, during the pre-budget consultation meeting, had also put forth this demand.

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  1. P
    P.M.Mathew
    Jan 2, 2018 at 8:54 pm
    The days of populist budgets are over.What is needed is a budget for inclusive,sustainable growth of the economy.
    Reply
    1. A
      aksinha
      Jan 2, 2018 at 1:28 pm
      Sir, Actual earners of rupees ten lac and above in Gross are ten times thirty lac. The issue is identifying the evaders. They are visible as much as Sun but not to the investigators. Tax authorities should put mechanism by Apps on their site where any citizen can fill in the name of evaders and their address like whistleblowers. Every city should have fifty to hundred Tax Inspectors to handle such reporting or taking up investigation on their own round the year. This would raise the Tax base from thirty lac to three crores. The target would be professionals, business enterprises, traders’ etc. Their tax rate may be kept at 10 only flat because they are vulnerable to Income fluctuation and they have to pay to the local Goons, Politicians, Police and other tax authorities besides local influential. The Tax collection would be on average of sixty thousand each and in aggregate this much times two crore seventy lac or about fifteen sixteen lac crore and it would be a surplus budget
      Reply
      1. Devulapalli Srinivasa Murti
        Jan 2, 2018 at 12:50 pm
        My reaction is in the form of an article pertinent to the current scenario. For favor of publication: s: drive.google /file/d/1RDYUVx1Z5sOhcmwzCaXFgBV4FngVtl52/view
        Reply

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