Little attention to direct income support, health and education deprivations, and revival of small businesses will keep the demand and production of goods and services depressed in FY22
In this Union Budget, government has gone against the precedent that gross budgetary support to the Ministry of Railways is fully funded by the Ministry of Finance
The SBI report also praised government's move to increase foreign direct investment limit in insurance companies to 74 per cent in the Budget.
Resisting the temptation to hike taxes, the finance minister banked on disinvestment and asset monetisation to increase government's revenue.
While the government has maintained for long it does not wish to be in business in sectors that are not of strategic importance, its track record of disinvestment is patchy at best
Budget 2021: In order to benefit farmers and promote domestic manufacturing, the government has also raised customs duty on cotton from nil to 10 per cent and on raw silk and silk yarn from 10 per cent to 15 per cent
The airlines in India typically take aircraft from lessors (on lease) who are based overseas. IndiGo, for instance, has over 200 planes on lease, and so is the case with other airlines like SpiceJet, GoAir, Vistara and Air India
Tax buoyancy, which describes the sensitiveness of tax revenue growth to changes in nominal GDP, is expected to touch 1.2 in FY22, marginally lower than 1.3 in FY21 (both tax revenues and GDP are projected to decline)
Prices of key raw materials including steel have gone up as strong demand from China at a time when most countries were under a shutdown last year created an acute demand supply gap
Budget 2021: Finance Minister says to further ease filing of returns, details of "capital gains from listed securities, dividend income, and interest from banks, post office, etc, will also be pre-filled"
While the government has reduced customs duty on gold and silver, gold and silver dore bar, among others, it has proposed an Agriculture Infrastructure and Development Cess (AIDC) on them.
The Union Budget 2021 should reflect concrete and enthused government efforts to boost both consumption and demand for an overall push to the economy
Tax policies must adapt to changing times to provide buoyancy and enable companies to undertake business in a time-bound and efficient manner
Expectations from the upcoming budget are huge in terms of giving relief to the current economy, increasing ease of doing business, and recovering from a negative GDP
Similar to the anticipation for the COVID-19 vaccination, the healthcare industry is also looking forward to an incentive booster in the upcoming Union Budget





