By Saurabh Bindal

Budget 2019 Expert Opinion on Budget Expectations: With the term of Modi government coming to an end, the last budget to be presented by it in the Parliament is going to make headlines in the newspapers. The pros and cons of which are difficult to gauge before the same is tabled. However, there are expectations around Budget 2019, which seek the indulgence of the government for building a better India.

An interim budget is presented by the government to meet its expenses in the new financial year till the time the next government takes charge. Interim budget is for a part of the fiscal year; however, it covers the budget for the entire financial year. Since, India is eyeing the general elections, the Modi government is going to table the interim budget, which we refer to as Budget 2019. Since, India’s independence, governments have restrained from making any major policy changes or changes in taxes in the interim budgets. This does not mean that the government does not have the constitutional authority to do so. This last budget of the Modi government is going to be a panacea if it will address all the ills.

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As you are already aware, India has a three-level economy comprising of the agriculture, manufacturing and service sector. All the three sectors are taken care of by the workforce. For the workforce who majorly belong to the middle class, savings are the biggest asset. Hence, an increase in the slab of tax with respect to income is certainly going to be a welcome move. India in last five years has rode on the chariot of growth. With growth, the per capita income has increased in India. Since, the per capita income has increased, the net savings also have increased. Modi government has itself harped on the benefits demonetization has brought to the nation. In such a scenario, for the common man, an increase in the taxation slab with respect to his income will certainly go a long way in reposing confidence in the positive strides India is trying to make.

Another campaign which the Modi government undertook was the “Make in India” campaign. The campaign aimed at building indigenous companies by developing skilled India. With the campaign came various tax benefits which included tax holidays, benefits on investments made in startups, benefits on investment made in research and development etc. However, for making and placing India on the global stage, it is imperative that the start ups are pitched at the global stage. This can only happen if start ups are willing to make investment for brand building. The Budget 2019 should also look for giving considerable benefit to the start ups for pitching themselves at the global stage. This will be in line with the government’s agenda of placing India amongst the power centric world.

Since, this is an interim budget, small steps taken by the government will show its will towards building a better India. Small changes in the structure and the will of the government to make such changes will be certainly tested on the anvil.

(The author is an Advocate with deep interest in issues pertaining to the information technology sector. Views expressed are the author’s own.)