Union Budget directly impacts the spending habits of the common person. Hence, the anticipation and expectations regarding the new budget policies start doing the rounds with the advent of the new year & that is true every year. The date is set; it’s Feb 1st, 2023 when our FM Smt. Nirmala Sitharaman will announce the Union Budget. With the Union Government going for the Lok Sabha Election in Mid-2024, this year the budget is going to a lot different from all spheres whether it is for the common citizens, for the SME sector, for the corporates, governances, the equities market & what not.
Also Read: The Union Budget: Can it restore the growth?
In the following article, you will read about expectations from the Union Budget in 2023.
The anticipation from the Budget on Hygiene and Sanitation Sector
Water, sanitation, and hygiene are important parts of the Swachh Bharat Mission. We are nearing the third wave of the pandemic, and clean water, sanitation, and hygiene are the front-line warriors in the fight against COVID-19.
Swachh Bharat Mission and Jal Jeevan Mission
Swachh Bharat Mission and Jal Jeevan Mission are two programs started by the Govt with much pomp & grandeur to promote cleanliness & hygiene. In 2021-22, The Swachh Bharat Mission was allocated Rs. 1.41 lakh crore from 2021 to 2026.
The facility to provide clean drinking & household water is also holding a high place of priority. The Jal Jeevan Mission was allocated 2.87 lakh crore for the next five years in 2021. And we are expecting that to be further topped up.
We need better water supplies and toilets to make rural India Open Defecation Free. So, we need a higher budget allocation for better quality toilets.
Expectations from Budget about PLI Scheme
For the unaware, PLI Scheme means Production Linked Incentive scheme. This scheme is laid out to make products produced in India make an impact Globally. This scheme is to make made-in-India products compete with products in the international market.
Minister Piyush Goyal hinted at expanding PLI Scheme to many more sectors. The Government is likely to extend the Rs. 35000 crore PLI Scheme to different sectors, including the chemical sector, vaccine products, etc. Other sectors that might be included in the PLI Scheme are the toys and leather sectors.
The Electric Vehicle industry seeks growth
The Electric Vehicle industry is looking for faster growth from the Union Budget of 2023.
- The EV industry is looking to become self-reliant in the coming Budget.
- Taxation on spare parts needs to be made much more clear.
- Customs duty on lithium cells must be reviewed and reduced.
- The storage sector of the EV industry expects innovation.
Advanced Chemistry Cell batteries might become home produced
The ACC cells take up about 80% of the cost of lithium-ion batteries. These cells are small in size and tiny. They will play a huge part in the growth of the renewable energy market and EV Industry. They will help save energy costs from other natural and non-renewable energy sources.
- To boost home production, the Government has launched a National Programme on Advanced Chemistry Cells.
- Electric Vehicle industry is expecting benefits from advancement in ACC production.
- Other industries that use batteries, like the solar industry, are looking at faster growth.
- Domestic as well as global producers are taking an interest in this new technology to meet the future demand of ACC.
- Reliance New Energy Solar, Hyundai Global Motors Company already received Rs. 18,100 crores from Government for the production of ACC.
Change in the Indirect Tax System
GST law has gone through many reforms ever since it came into existence. Notably among the reforms are restrictions on input tax credit claims. Another reform is in the form of e-invoicing. These reforms have resulted in better compliance and tax payment.
- Some expectations regarding the decrease in the number of tax slabs may come to fruition.
- Some amendments related to decriminalization in the GST Act are expected to be a part of the Budget 2023.
Another expectation is for loan seekers
Loan seekers have faced a hard time for the past Year due to the high-interest rates imposed on loans.
- Improved sips for homebuyers. Anticipation is that more incentives are on their way to improving rental housing at affordable rates.
- Taxes on building materials are expected to decrease.
- This will lead to a decrease in the overall cost of construction and benefit the entire sector.
Exemption on personal and education loans is expected. Interest on these loans is expected to be exempted from tax in the upcoming Budget.
Raising the income tax exemption level
There is a buzz that Government can increase the tax exemption level on various tax slabs of income of people. Currently, above Rs. 2.5 lakh, the tax is charged on the income under different slabs of income tax.
As we can see, it’s evident that there are a lot of expectations from this coming Budget. We have overviewed various sectors which are expecting favourable things from Nirmala Sitaram. Sectors like Hygiene and Sanitation, which are a part of the Swachh Bharat campaign, are likely to benefit from the Budget. With more investment coming in improving the quality of toilets and clean water supply, especially in rural parts of India, we can anticipate an (Open Defecation Free) country. Whether it’s Advanced Chemistry Cells production coming under PLI Scheme or changes in the indirect tax system, the Budget has a lot of things to affect. Another factor is that loan seekers can also benefit from the Budget.
It was the previous election year interim Budget where we found the then FM Piyush Goyal to announce that salaried class & small tax Payers are kept in mind while providing a rebate of upto 2.5 lakhs via
The image on the right clearly depicts that the trends of revenue accumulation for the union & the State governments have been on an exponential rise as India targets the 5 trillion dollar economy as proposed by our Hon’ble PM Narendra Modi. This Year being the eclipscial budget year, would be a high time to relax the nation’s citizens on their direct Tax burden.
Even Financial Analysts & economic advisors hold very high hopes in this regard
We all are fingers crossed for D-day on Feb 1st, 2023, when our hopes might come true. For further updates & information, keep a look at the Government of India’s official Budget webpage.