New Delhi: Finance Minister Nirmala Sitharaman is going to present her second general budget today. At the same time, most eyes in this budget are set on the reduction in income tax slabs. At the same time, salaried taxpayers hope that the finance minister is going to benefit the middle class by reducing the slab and tax rate. It is also being said that many big announcements can be made to increase demand. They can impose new taxes to increase the state exchequer. Apart from this, she will also try to meet the expectations of the middle class. In the budget, eyes will remain on these five things.
Fiscal Mathematics: The first and important challenge for Sitharaman will be to convince investors and analysts that their revenue and expenditure estimates are reliable. The estimates of last year's Panglossian revenue growth, which proved unacceptable, were challenged by analysts from the beginning. The fiscal deficit for FY 20 and 21 will be closely monitored. Estimates of nominal growth of GDP for FY 2021 should be realistic.
Revenue incentive: The government is expected to take steps to improve the economy due to dwindling customer demand and lack of private investment. If the government spends more to overcome lethargy, then it will show the seriousness of improving its economy. At the same time, it will affect the bond market and may prevent the RBI from cutting rates.
Recommendations of the Finance Commission: Finance Minister Sitharaman will present the interim report of the 15th Finance Commission on Saturday as well as recommendations of action taken in Parliament. State and economists will see how the FFC deals with controversial issues. Such as the state's share in central taxes, the burden of the population in resource allocation and the proposal to create a separate fund for the defense sector.
Tax base to be increased: To raise resources for high public spending amidst a slowdown in tax collection. Sitharaman will have to increase the tax base and reduce the tax incentives given to charitable trusts. To increase the tax base, Sitara can follow European trends.
Income tax relief: The government is under pressure to give income tax relief to the middle-class people, but given that this class has an important role in the government treasury, some relief can also be given to the government. The salaried class has 60 percent of the total income of the total persons, including all those who have income from a business, capital gains, house property, and other sources.
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Finance Minister Nirmala Sitharaman reaches Parliament, budget will be presented at 11 am
