As the Union Budget 2025 approaches, several key expectations have emerged across various sectors:
Income Tax Reforms:
- Adjustment
of Tax Slabs:
There's anticipation that Finance Minister Nirmala Sitharaman may revise
income tax slabs to provide relief to taxpayers. Proposals include
increasing the exemption limit to ₹3 lakh and raising the Section 80C
deduction limit to ₹2.5 lakh.
- Standard Deductions: Experts suggest implementing a flat 30% deduction on gross income to simplify tax calculations and benefit salaried individuals.
As the Union Budget 2025 approaches, various
sectors have outlined their expectations to foster growth and development.
Here's an overview:
· Electronics Sector:
The Indian Cellular and Electronics Association
(ICEA) advocates for reducing duties on electronic components, such as parts of
mobile phones and televisions, to lower costs for domestic manufacturers. Additionally,
there's a push for financial support to bolster domestic electronic component
manufacturing, aiming to expand India's electronics manufacturing to $500
billion by fiscal 2030.
·
Agriculture Sector:
The agriculture sector anticipates increased
investments in agricultural research, infrastructure, irrigation projects, and
crop insurance schemes. These measures aim to boost farmers' income and
productivity, ensuring food security and enhancing the livelihood of farmers.
·
Banking Sector:
Public sector banks are looking for significant
allocations for recapitalization to strengthen their balance sheets and enhance
lending capacity. There's also an expectation for support in digital banking
initiatives, improved credit access for MSMEs, and a strengthened regulatory
framework to ensure better governance and transparency.
·
Defence Sector:
Given geopolitical challenges, the defence sector
expects a substantial increase in budget allocation for modernizing armed
forces and acquiring advanced weaponry.
There's also a push for policies promoting domestic
manufacturing of defence equipment, aligning with the 'Make in India'
initiative, and increased investment in research and development for indigenous
technologies.
·
Railways Sector:
The railways sector anticipates a 15-20% increase
in capital expenditure, potentially crossing ₹3 lakh crore. Key projects
include track upgrades, modernization of railway stations, and funding for the
Mumbai-Ahmedabad bullet train. Additionally, there's a focus on safety, with
investments expected in advanced safety systems and regular maintenance to
prevent accidents.
Subsidies and Social Welfare:
- Increased
Subsidy Allocation: The government plans to raise spending on
food, fertilizer, and cooking gas subsidies by 8% to $47.41 billion in the
next fiscal year, addressing higher food and energy costs.
Fiscal Consolidation:
- Deficit
Reduction: The
government aims to continue focusing on quality spending and safety nets,
targeting a reduction of the fiscal deficit to 4.5% of GDP by FY26.
Sector-Specific Initiatives:
- Education
and Skilling: There's
an expectation for targeted tax breaks and incentivized collaborations
between EdTech platforms and educational institutions. Additionally,
access to skilling for economically disadvantaged students and
interest-free loans may be introduced.
- Manufacturing
and Technology: The
budget is anticipated to focus on labor-skilling initiatives to address
talent gaps in the manufacturing and technology sectors. Boosting R&D
and innovation through targeted incentives, especially for businesses not
benefiting from Production Linked Incentive (PLI) schemes, is also
expected.
Customs Duty Reforms:
- Simplification
of Duty Structure: To streamline the trade framework, customs
duty slabs are likely to be reduced, simplifying the overall structure and
promoting ease of doing business.
These expectations reflect a comprehensive approach
to addressing economic challenges, promoting growth, and providing relief to
various segments of society.
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