With the recent blow of currency ban of Rs. 500 and Rs. 1000, Budget 2017-18 will be the most challenging budget for our Finance Minister. Many have hopes that the ArunJaitley will provide some relief to the people as the below topics are expected to be discussed.
Finance Minister ArunJaitley will look forward to putting more cash in the hands of the people and provide a hike in the Income Tax exemption limit to Rs. 3 lakh from the current Rs. 2.5 lakh. He would want to check the disruptive impact of demonetization on demand, supply chains, and cratered credit growth.
According to India TV, a higher medical rebate may also be on the cards. He may also raise the deduction limit for the interest paid on home loans from Rs. 2 lakhs to Rs. 2.5 lakhs.
Considering the Indian population and the high unemployment rate, universal income would cause a huge burden on the national treasury. The government is trying to reduce cost, the program faces a hard reality check.
Schemes for Start-ups in Budget 2017-2018
As most of the companies are now drying up, Indian start-ups desperately look forward to boosting venture capitalism. Most e-commerce start-ups are a failure and are now looking towards the government for incentives. More than that, they look forward to protection against foreign companies like Amazon and Uber.
The social schemes for farmers and rural India like health and education would be a major breakthrough for the budget. The states and Punjab and Uttar Pradesh face elections at present, will might shake things up a little. In addition, the rising oil prices are a worry for ArunJaitley. This leaves little room for the Finance Minister to change and shift plans and schemes.
According to Economic Times, it still remains to be seen if Finance Minister will be narrowing the deficit in the Budget 2017-18. As he looks forward to reversing the investment collapse, especially on infrastructure he continues to bank on public speaking.