{"id":1067,"date":"2022-01-31T13:46:37","date_gmt":"2022-01-31T13:46:37","guid":{"rendered":"https:\/\/www.invest19.com\/blog\/?p=1067"},"modified":"2022-02-02T05:53:20","modified_gmt":"2022-02-02T05:53:20","slug":"the-expectation-of-various-sectors-from-the-finance-minister-nirmala-sitharaman","status":"publish","type":"post","link":"https:\/\/www.invest19.com\/blog\/the-expectation-of-various-sectors-from-the-finance-minister-nirmala-sitharaman\/","title":{"rendered":"The expectation of various sectors from the finance minister Nirmala Sitharaman"},"content":{"rendered":"
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\nBudget\nis one of the biggest days for any economy. This day is not only\nconsidered important for big business houses, but it also affects\nevery household of the economy. Starting from what we eat, to what we\nwear, how we live, and what we drive, every bit of our consumption\nlife is touched. \n<\/p>\n\n\n\n

The\nbudget is present every year on the first of February, it is an\nelaborated statement of income and expenditure of the government in\nthe previous fiscal year an estimated expenditure and revenue for the\ncoming fiscal year. Our honorable finance minister of the country\nreads the entire statement and lets the public know about the budget\nof the country, on Marco’s level.<\/p>\n\n\n\n

\nSimilarly,\nas we are just a month away to start FY23, Finance Minister Nirmala\nSitharaman will present her fourth Budget to Loksabha at 11:00\nAM on the 1st of February.<\/p>\n\n\n\n

Before\nknowing the market expectation of the budget, have a look at the\ncurrent status of the economy.<\/p>\n\n\n\n

The\ninternational monetary fund has estimated the GDP of India for the\ncurrent fiscal year to be at 9%, however, it’s was lower than the\nearlier projection of 9.5%, amid the impact of omicron and its effect\non the businesses. \n<\/p>\n\n\n\n

Further\nto top the concern on the economy is lackluster consumption economy.\nMany consumer-facing companies have also shown concern over a\nslowdown in the rural ecpn0omy, a major driver of consumer demand\ngrowth. \n<\/p>\n\n\n\n

Keeping\nthe growth rate and slower consumption rate in the economy, various\nsectors have their expectation from the budget, which may put some\nmoney into the pocket of the consumer which may further push the\neconomy.<\/p>\n\n\n\n

Hospitality\nSector:<\/strong><\/p>\n\n\n\n

Covid\nhas taken the hospitality sector down over the last two years. This\nsector needs some care look from the government and thus this sector\nis eyeing the budget for lower taxes and incentives in terms of\noffering interest-free loans, subsidies, and reduction in tax rates.<\/p>\n\n\n\n

Aviation\nSector:<\/strong><\/p>\n\n\n\n

Despite\ncovid, the Aviation sector has shown great growth potential. The\nsectors have shown some strong growth indicators like growth in\npassenger load factor, traffic, capacity expansion, incremental\ncargo business, strong aircraft purchase, etc.<\/p>\n\n\n\n

Given\nthe essence of the aviation sector for Indian economic development,\nthe sector is expecting some tax relief like reduction in import duty\n(and VAT) on ATF, incentives for setting up flight training\nacademies, and other organizations contributing to aviation-specific\nskilling.<\/p>\n\n\n\n

The\nsector also exects some fiscal support like government guarantee for\ncommercial, tax deferral, and holidays in payment for airport landing\nand parking charges.<\/p>\n\n\n\n

Real\nEstate Sector<\/strong><\/p>\n\n\n\n

Real\nSector developers are expecting some streamlining in taxation in real\nestate and developing an investment climate in the sector. Further,\nthe industry also expects its long due industry status and one window\nclearance.<\/p>\n\n\n\n

Another\nexpectation is extending the tax relief to the homebuyers by raising\nthe tax deduction limit from 2 lakh per annum to 5 lakh per annum for\nhome loans.<\/p>\n\n\n\n

Education\nSector<\/strong><\/p>\n\n\n\n

\nEducation\nhas always been a priority sector for the Indian economy. \n<\/p>\n\n\n\n

With\nCovid hitting everyone hard, it has paved the way for online\neducation. The sector expects some support to promote technology in\nthe sector. Technology is expensive and the government should give\nsome relief in the form of tax rebates on the technology. \n<\/p>\n\n\n\n

The\nsector also seeks some expenditure on research and development and\npromoting technological advancement in the sector in Tier2 and Tier 3\ncities.<\/p>\n\n\n\n

Healthcare\nSector<\/strong><\/p>\n\n\n\n

Covid\nhad a huge impact on the entire Life Sciences and Health Care (LSHC)\nindustry. <\/p>\n\n\n\n

Industry\nasks for zero-rating of healthcare services. As the healthcare\nservices are GST free, then GST paid on inputs and inputs services\nbecome a cost for the industry. Thus zero-rating will make the\nindustry enable to claim refunds for GST paid on inputs. The industry\nalso seeks a reduction in GST on input and input services and GST\ncredit on expired goods.<\/p>\n\n\n\n

Financial\nSector<\/strong><\/p>\n\n\n\n

The\nbanking sector is undergoing a major structural change. Expectation\nfrom the budget is high from this industry and they anticipate\nreforming the country’s public banking sector. \n<\/p>\n\n\n\n

Foreign\nbank branches are expecting a cut in corporate tax which stands at\n40%, whereas domestic banks ays in approx 22%, as tax.<\/p>\n\n\n\n

Banks\nare also expecting a rise in an income tax deduction for bad and\ndoubtful debts provision.<\/p>\n\n\n\n

Insurance\nSector<\/strong><\/p>\n\n\n\n

The\ninsurance industry is budding in the country, with people\nunderstanding the importance of investment and insurance of various\nkinds available to make life easier demand for insurance is\nincreasing. The insurance sector seeks GST n health insurance to be\nslashed to 5% from the existing 18% and Micro-insurance and sachet\nproducts to be exempted from GST.<\/p>\n\n\n\n

Household<\/strong><\/p>\n\n\n\n

Salary\npeople expect a no-tax for income up to Rs5lac, which will increase\ntheir net income. Household also expects an increase in the limit to\nRs3 lac from Rs1.5 lac under section 80C and other similar\ndeductions. Further people also want an increase in the limit to Rs\n50,000 from Rs25,000 under section 80D.<\/p>\n\n\n\n

These\nare some expectations from our finance minister in its budget to be\npresented on 1st February. However, time will tell how much will the\ngovernment meet the expectations of various sectors and the common\nman.
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Stocks\nto pick before budget day<\/p>\n\n\n\n