Union Budget 2021: Jobs, tax benefits on Indias wish-list like never before – CNBCTV18

Come February 1, the Union Budget 2021-22 will be presented in Parliament by Finance Minister Nirmala Sitharaman.

For the first time in Indian history, it will be paperless in view of COVID-19. Given that the pandemic brought the economy to its knees last year, there are a host of expectations from this budget, the third one to be tabled by the Narendra Modi government 2.0, to provide succour to people as well as sectors that are under duress.

Sitharaman has promised a Budget like never before and it is expected that investment in health, medical research and development, as well as telemedicine will take precedence. However, challenges related to livelihood and job creation will be equally crucial to address.

While it is hoped that the basic tax exemption limit will be revised from Rs 2.5 lakh to Rs 5 lakh, a COVID cess or surcharge on those in the high-income bracket may also apply to boost revenues for the government. This may come handy for the increased spending in view of the ongoing countrywide COVID vaccination programme.

The countrys growth rate is anticipated to shrink by nearly 7.7%, in contrast to the 4.2% growth in the previous fiscal.

On the other hand, the fiscal deficit is projected to shoot up. India has already exceeded 135% of the fiscal deficit targets for FY21 last December, reported PTI.

That apart, many are pinning hoped that the government eases Foreign Direct Investment rules in the construction sector to give a boost to home-buyers.

Industry experts agree that the government, apart from focussing on employment generation, must lay more emphasis on bringing about governance reforms freedom in the banking sector, which is still facing asset quality issues, and giving more independence to bank boards.

They also hope that the government is exploring and designing solutions to help ease the burden of compliance. In September 2020, there were reports of the Prime Minister batting for lower fees as well as extended validity of permissions and licences instead of frequent renewals on businesses, especially the small and medium enterprises.

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Union Budget 2021: Jobs, tax benefits on Indias wish-list like never before - CNBCTV18