The union budget of 2018-19 is only two weeks away and would be the last budget before the next Lok Sabha election. Therefore, it can be expected that this budget will be a very populist one that satisfy as many as possible. Since BJP’s principal vote bank is the Hindu middle class, satisfying their expectations should be foremost in Arun Jaitley’s mind. There is a list that we have prepared which would be the main expectationss for the people of India from the finance minister of India.
Reduction of GST
GST is something that is hurting the middle class’ pocket severely. The small traders that are also traditional vote bank of Modi too are dissatisfied with the shot up expenses and costs in their businesses. Thus, Jaitley would do a world of good for himself and Modi if he reduces the GST slabs.
Increased minimum wages
The current minimum wage of Rs.350 per day is likely to be revised in this budget. The current daily minimum wage works out to Rs.9, 100 per month which might increased to Rs. 18,000 per month. One the other hand, the demand of the traders’ bodies stands at Rs.21, 000 a month.
Revision of exemption limit and tax slabs
The current exemption limit of Rs.2.5 lakh per annum has been recently proposed by the finance ministry to be extended to Rs.3 lakhs if not Rs.5 lakhs, which many expects from Jaitley.
Creation of more jobs
The current state of unemployment as estimated by UN Labour Report stands at 18 million. The government’s promise of generating 1 crore jobs has fallen flat on its face. The NREGA producing 100 days jobs for the poor that was created by the UPA government is almost dead. Thus, the worried government may try to intervene through economic, social and labour policy that can spur growth in the small and medium sized enterprises.
Raised investment in tax saving schemes
The maximum deduction allowed currently through various tax saving schemes, such as EPF, PPF, life insurance schemes, National Savings Certificates, ELSS, etc is Rs.1.5 lakhs under section 80C. The increase in limit can be by Rs. 50,000 that will allow the people saving more and channelizing long term savings into capital markets.