Special Article : Union Budget 2019: What does it mean for the Common Man?

Union Budget 2019

Key Budget Highlights:

– The government set a fiscal deficit target of 3.3%, lower than consensus. It plans to meet this target via increased non-tax revenue from disinvestments (Rs 1,05,000 crore), the Reserve Bank of India’s special dividend, and additional levies on petrol and diesel.

– Public sector banks (PSB) get recapitalization of 70,000 crore. This will be additional relief after the major PSBs improved their loan book quality and coverage ratios.

– Private investment will be encouraged in railways through Public-Private-Partnership (PPP) model. The government also announced 22.6% increase in road development outlay and the Pradhan Mantri Gram Sadak Yojana (PMGSY) completion target was advance to 2019 from 2022.

– The budget reiterates focus on Housing for All. Loans for affordable housing will get tax benefit, which is expected to boost demand.

– The turnover threshold for lower tax rates of 25% has been increased to Rs 400 crore from Rs 250 crore.  Continue reading “Special Article : Union Budget 2019: What does it mean for the Common Man?”

Special Article : Interim Budget Expectations and What to Look for

As this is an election year, the Indian government will present an Interim budget, which is different from a Union budget and Vote of Account. In the Interim budget, income tax rules can be tweaked, but most governments have chosen not to make any major changes. A Vote of Account enables government to fund its expenses till the full budget is passed. They cannot do any changes in direct taxation as it needs to be passed through a Finance bill.

Sector Expectations

Auto

The Auto industry wants the government to announce a one-time incentive in the form of a tax rebate for replacing vehicles Continue reading “Special Article : Interim Budget Expectations and What to Look for”