The union budget of India has always been the most anticipated event of the country. And this year, the budget has even some unique features as well. Conventionally, the budget was announced on the last date of February but this year the date has changed. But the union budget 2017-2018 will be announced on the much earlier date of 1st February rather than 1st March. Another unique feature of this year budget is that this time the railway budget will not be a separate event and it will be announced with this union budget.
Union budget has always been the subject of intense debate between experts and analysts of different schools of political thoughts. The 2016 union budget was not too unique in the sense of satisfying the expectations and it was termed as populist and conservative by the experts and they figured it as the budget made to pacify the local masses by acceding to their demands. Let’s have a look at some of the predictions made by the experts about the budget of this year.
1: Significant changes in the tax slabs:
The most expected change in the tax slabs is the revision of taxation limits. The minimum taxable income is Rs.2.5 Lakh now but it is expected that this minimum amount will be revised to Rs.4 Lakh to make it easy for the local taxpayers. This is due to the demonetisation that was done in November.
Deductions are also expected in the tax slabs percentages. This whole expectation is probably the most awaited by the masses.
2: Promotion of electronic transactions:
As the union budget 2017 is coming after the demonetisation that was done in November 2016, it is expected that there will be certain tax exemptions in electronic payments in order to promote electronic transactions. There will be some tax discounts for the customers as well as the merchants in debit card, credit card payments at the Point of Sales booth. This move will promote the mobile payments and mobile banking.
3: Senior citizen’s pensions:
It is expected that this year’s budget will be populist in the matter of reducing the taxes on the pensions of senior citizens. The expectations are that the pensions will be made completely tax free. This will not only make senior citizens satisfied but it will also make the task of taxation department easier.
4: Revised GST model:
General sales tax which is commonly known as GST is the common tax levied by the government on the services and products sold by the companies. The structure of GST has always been the major debating topic between the local and federal governments and it is expected that the government is coming with a new version or model of GST which will definitely lower the tax. This move will definitely help the corporates to file their taxes easily.
5: Improvement in Railways:
Recent Kanpur accident may urge the government to increase the railway budget. The improvement in the Railways has always been highly anticipated by the local massed as the railway is the most used mode of long travel by the citizens of India.
The union budget 2017 is expected to be different than the previous ones. But the point to note is that these expectations are all predicted by the experts and hence they are subjected to government’s will.