‘Budget like never before’: Sector-wise expectations from finance minister
Here’s a look what different sectors expect from Union Budget 2021
Union finance minister Nirmala Sitharaman is all set to present the budget on Monday, February 1, a task which will be more challenging this year amid the coronavirus pandemic which has not only impacted the Indian economy but nations across the world. As Sitharaman promised a budget like "never before" this year, all sectors are looking up to the finance minister for a boost as they face these unprecedented times.
"Send me your inputs so that we can see a budget which is a budget like never before, in a way. Hundred years of India wouldn't have seen a budget being made post pandemic like this," Sitharaman had said while addressing the CII Partnership Summit 2020.
Here’s a look what different sectors expect from Union Budget 2021:
Defence
The defence sector expects higher allocation and more focus on research and development as well as indigenous procurement from the Union Budget 2021. The government needs to focus on this sector in view of the ongoing border row with China in eastern Ladakh, experts have said.
Household
The coronavirus pandemic has impacted households across the country the most because the nationwide lockdown hit their savings hard. Incentivising savings as well as investments are expected to be the topmost priority of the government.
Real estate
{{/usCountry}}Real estate
{{/usCountry}}Although several policy measures have been taken to boost real estate in pandemic-hit 2020, the sector expects the government to widen the scope of its affordable housing scheme and provide more tax benefits to potential homebuyers. The sector wants stimulus in the form of sops in the Union Budget 2021 to boost housing demand. The key demands of the real estate sector comprise tax rebate on housing, GST waiver, personal tax relief, an extension of interest subvention, easing liquidity for the sector, and infrastructure status for realty.
{{/usCountry}}Although several policy measures have been taken to boost real estate in pandemic-hit 2020, the sector expects the government to widen the scope of its affordable housing scheme and provide more tax benefits to potential homebuyers. The sector wants stimulus in the form of sops in the Union Budget 2021 to boost housing demand. The key demands of the real estate sector comprise tax rebate on housing, GST waiver, personal tax relief, an extension of interest subvention, easing liquidity for the sector, and infrastructure status for realty.
{{/usCountry}}Income tax
{{/usCountry}}Income tax
{{/usCountry}}Salaried individuals will be looking forward to the finance minister increasing the basic exemption limit from ₹250,000 to ₹500,000. This will help them in having more disposable income and therefore increase personal demand as well. Although it is highly unlikely that the government would take this step.
{{/usCountry}}Salaried individuals will be looking forward to the finance minister increasing the basic exemption limit from ₹250,000 to ₹500,000. This will help them in having more disposable income and therefore increase personal demand as well. Although it is highly unlikely that the government would take this step.
{{/usCountry}}Healthcare
The pandemic made the healthcare sector face the most difficult year and therefore it expects the government to increase spending for both infrastructure developments as well as for vaccination. The sector is also expecting a reduction in taxes, especially on treatment.
Banking sector
The banking sector expects more disinvestment, privatising public sector banks (PSBs), higher allocations, setting up of bad banks and focus on investigating financial frauds by instituting an agency for the same.
Auto sector
The sector expects the government to announce measures that create more demand for automobiles in the economy as the sector is focused on sales recovery after the pandemic.
Railways sector
More budgetary allocation, infrastructure development, privatisation of trains and increased focus on the up-gradation of existing infrastructure are some of the expectations of this sector from the government.
Agriculture sector
In view of the ongoing farmers’ protest, the government needs to do much more to placate the farmers through an increase in the infrastructure allocation as well as schemes that help the farmers.
