Budget 2023 Expectations News LIVE Updates: Sitharaman likely to focus on boosting capex, creating jobs

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Union Budget 2023 Expectations News Live: This budget is expected to be the last one before the general elections in 2024. Therefore, India expects the FM to provide a blue-sky vision for India and present a roadmap to fulfil the aspiration of India becoming a $10 trillion economy. The Budget could lay a roadmap for providing a boost to employment generation. An increased allocation for Railways, Defence, Airports, Irrigation, education, healthcare, and Roads are the basic expectations. The FM could also give a major relief to the salaried class by raising tax slabs and deductions. Increased disposable income in hands of middle class will not only boost consumption but also help services sector. India as a country has a low percentage of taxpayers and our tax to GDP ratio is quite low. While it is a far-fetched idea, we would like to see tax on agriculture income for rich farmers (may be tax on agriculture income above Rs 50 lakhs to start with) to widen the tax net.

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ET Poll: How Indians want Sitharaman to steer the country’s EV drive

India’s electric vehicle industry saw sales of one million units for the first time in 2022. Though the milestone was reached contrary to the industry’s expectations, electric vehicles (EVs) account for a meagre 4.7 per cent of the total automobile sales in India.In a pre-budget poll conducted by ET Online, almost half of the respondents (49.1 per cent to be precise) highlighted the need for better charging infrastructure in the country.

ET Poll: How Indians want Sitharaman to steer the country’s EV drive

Budget 2023 Expectations LIVE: N.A. Shah Associates’ Partner Parag Mehta on GST Pre-Budget expectation

There is a long-standing demand to include fuel under the GST regime and at present, one of the main expenses for those in the logistics and transportation sector is the cost of fuel. As it is not covered under GST, they are unable to take ITC on the same due to which there is an increase in cost for all. Non-inclusion of fuel in the ambit of GST is increasing the transport cost which is passed on to the trade which results in a cascading effect and increase in price of goods. Ultimately it is the final consumer who bears the cost of the said increase. If fuel is included under the ambit of GST, it is bound to reduce costs of transport and if benefit of the same is passed on to the consumers, it will lead to more spending power, benefiting the economy to a great extent.One time amnesty schemes have been instituted for the old Service Tax/Excise matters as well as the current GST matters. There have been various interpretational issues, frequent amendments, and unintentional errors after the introduction of GST. Also there have been various proceedings under the erstwhile Service Tax/Excise Laws. This has resulted in huge demands along with interest and penalty on the trade. A one-time amnesty will help the trade as well as remove the pendency of litigation at various levels and enable the trade to concentrate on their business.

Union Budget 2023 might be presented in new Parliament building

Budget 2023 Expectations LIVE: What taxpayers want in this budget

  • Change in tax slabs and tax rates: With increasing costs of living and interest rates on loans on the rise, a relaxation in the income tax rates for individuals would be a welcome measure to restore purchasing power of individuals. The government could consider increasing the threshold for the highest tax rate from Rs 10 lakh to Rs 20 lakh, and reduce the highest tax rate from 30% to 25%, to bring it on par with the general income tax rate applicable to companies.
  • Deduction under section 80TTA of the Income Tax Act, 1961: The deduction limit has remained static since it was introduced way back in FY 2012-13. With interest rates on the rise, the government should consider enhancing the limit from Rs 10,000 to Rs 50,000. Additionally, interest earned from fixed deposits with banks should also be included under this section to encourage the habit of savings among taxpayers.
  • Deduction for children’s education costs: Currently, deduction towards expenses incurred on fees for children’s education is allowed under the overall limit of Rs 1. 5 lakh under section 80C of the Act and is often lost among the various other expenses/investments that fall within the ambit of this section.
  • Increase in tax exemption limit for health insurance: The government could consider enhancing the deduction limit under section 80D of the Act from Rs 25,000/Rs 50,000 to Rs 50,000/Rs 1 lakh.

Budget 2023 Expectations LIVE: Govt may bump up allocation for existing PLI schemes

India is likely to substantially top up the allocation for ongoing Production-Linked Incentive (PLI) schemes in the February 1 budget after seeing good results, said people with knowledge of the matter. Some new sectors may be included in the programme that seeks to reignite manufacturing in India and boost exports, along with other measures to spur investments.

ET Poll: What should be the top priority for Modi government in this budget?

ET Poll: What should be the top priority for Modi government in this budget?

Taxing times ahead?

  • Sustaining the current 19.5 per cent growth rate in income and corporate tax collections may be difficult in next fiscal year given headwinds from a slowing world and high base effect, a government source said. Net direct taxes, which are made up of personal income tax and the tax levied on corporate earnings, have seen a record growth in current fiscal year, topping up the numbers projected in the Budget.
  • The expected lower nominal GDP growth in 2023-24 on the back of threats of global recession could impact income tax collection, the government source told reporters ahead of the presentation of Union Budget 2023-24 on February 1. The net direct tax collection grew 19.55 per cent to Rs 12.31 lakh crore till January 10. This is 86.68 per cent of the Budget estimates for current fiscal year. The forthcoming Budget will have revised revenue estimates for current fiscal year as well as tax collection estimates for the next year.
  • As per first advance estimates, India’s nominal GDP is projected to grow at 15.4 per cent this fiscal year and after adjusting inflation, real GDP growth is expected to be 7 per cent.

What can make it a superhit budget for BJP before elections?

What can make it a superhit budget for BJP before elections?

Budget 2023 Expectations LIVE: Rahul Pagidipati, CEO, ZebPay on what CRYPTO Industry wants from FM

  • 2022 had been a crucial year for the Web3 and crypto industry. Despite being a relatively new and untested market, the crypto industry has witnessed rapid growth in India with an increasing number of people showcasing interest to invest in the asset class. According to a report released by FICCI and EY in 2022, Web 3.0 and blockchain can add a staggering $1.1 trillion to India’s GDP by 2032.
  • In FY22, the government announced a 30% plus surcharge and cess as well as 1% TDS deduction on the transfer of Virtual Digital Assets. While it is great to see the government take a step towards regulating VDAs, in the upcoming budget 2023, we urge the government to create a progressive regulatory framework and offer clarity on taxation by reducing TDS and Capital Gains Taxes and levelling them with other asset classes such as stocks and bonds. This will address the ongoing concerns and uncertainty about the industry by creating transparency and help industry players to protect users from any kind of black swan events like the FTX collapse. Clear governance and regulatory framework will enable more people to invest in VDAs and attain financial freedom. It will also encourage innovation to transform existing businesses through blockchain technology as well as build newer solutions for the industry to thrive further”.

Budget 2023 Expectations LIVE: What India needs from this Budget to create a roadmap for Green Energy

  • As a direct tax incentive, the current concessional tax regime of 15 percent which is available to organizations commencing the generation of electricity or manufacture/production of any article or thing before 31 March 2024 should be extended to encourage organizations to invest in new energy.
  • Developing indigenous technology or technical collaborations is critical to producing renewable energy. Creating a tax incentive policy towards R&D expenditure incurred by organizations for the development of such technology either indigenous or acquired from overseas jurisdiction could be considered. As an indirect tax incentive, reimbursement of indirect taxes on account of non-creditable inputs could be considered to minimize tax leakage.
  • The government could consider rolling out incentives in form of a PLI scheme also in the wind, green hydrogen/ ammonia sector. For developers of wind projects, investment-based incentives such as capital subsidies could be considered.

Budget 2023 Expectations LIVE: Ficci seeks increase in import duty of aluminium

Industry body Ficci has sought an increase in the import duty on aluminium and aluminium products to at least 12.5 per cent in the upcoming budget 2023-24, stating that the move will help curb dumping of aluminium products and encourage growth of the domestic manufacturing and recycling. The present import duty on aluminium and aluminium products is 10 per cent. Aluminium, a resilient metal that retains its fundamental properties even when recycled, is widely utilised.

Budget 2023 Expectations LIVE: What social sector could get from Sitharaman

  • The Budget could give a major push to the social sector, especially schemes directly benefiting the Scheduled Castes (SC), Scheduled Tribes (ST) and senior citizens, ahead of elections in nine states and one Union territory and the parliamentary polls next year, said people aware of the matter.
  • The thrust is likely to be on infrastructure creation in SC and ST-dominated districts, they said, with enhanced allocation for construction of residential schools and hostels for SC and ST students, care homes for senior citizens and under Pradhan Mantri Adi Adarsh Gram Yojana to improve basic infrastructure facilities in villages with more than 40% tribal population.
  • The upcoming Budget is likely to rationalise the scheme and exempt certain ministries from allocating funds under DAPSC and STC, but without slashing the overall allocation for targeted schemes for SCs and STs.

Budget 2023 Expectations LIVE: Dilip Modi, Founder, Spice Money on what Budget can do for the fintech industry

  • Tax norms and GST: We hope for a tax reduction in the upcoming budget that could help small merchants to provide financial services to rural citizens. As this will help in minimizing the cost of providing financial services and foster deeper financial inclusion in the hinterlands of the country.
  • Leverage Aadhaar Stack to drive financial inclusion in rural: We have witnessed significant growth in transactions in Bank accounts in rural areas enabled by Business Correspondents leveraging the Aadhaar stack. The budget should provide economic benefits in the forms of tax exemptions and subsidies to improve the economic viability of BCs with the aim of enabling all 6 lakh villages with neighbourhood banking services, thereby building a strong foundation for financial inclusion.
  • DBU units: The government’s focus on setting up 75 Digital Banking units in 75 districts should be continued this year as well. The involvement of existing fintech players and especially Corporate banking correspondents which are bank agnostic in driving digital banking units will help in further expanding necessary universal banking services to the last mile over restricting to one bank brand services and enable us to take a step further towards our goal of financial inclusion through rural empowerment.

Budget 2023: FY24 Fiscal Deficit Estimate (% of GDP) and economists’ projections

Budget 2023: FY24 Fiscal Deficit Estimate (% of GDP) and economists' projections

Budget 2023 Expectations LIVE: It’s time to address woes of NBFCs

According to Shachindra Nath, Vice Chairman and Managing Director, U GRO Capital, the following demands by NBFCs should be taken into consideration in the Budget to enable higher participation and transform the liquidity scenario and cost of acquiring funds for small and medium sized NBFCs:

  • Active liquidity support system
  • Development of active secondary market of PTC
  • Lowering the loan limit for applicability of SARFAESI Act
  • Parity in Income Tax treatment on NPA provisions
  • Taxation of interest on NPAs on accrual basis

Budget 2023 Expectations LIVE: Gurjodhpal Singh, CEO, Tide India on what needs to be done in MSME sector

The MSME sector has potentially turned out to be a key catalyst for the Indian economy in recent years, considering India is home to over 63 million MSMEs contributing close to 30% of the country’s GDP. Reiterating such a significant figure, it has become imperative for the government and the Fintech syndicates to work in alignment with each other and make the sector more stronger, resilient, and developed in terms of mutual growth and profitability. To achieve the vision of making India a USD 5 trillion economy while creating a new self-reliant nation, the government should introduce a much-needed policy framework mandating large corporates to include the MSME segment in their business models in some or the other way. This can be done by procuring a certain percentage of the priority sector’s business or aiding them with the current technological innovations and marketing tactics to bolster their business growth. Furthermore, the slowdown we saw in the economy last year has caused significant pain to MSMEs due to high-interest rates in the lending landscape inhibiting their operational capabilities. Therefore, soft loans at minimal interest rates or any reduction in the SME lending rates will provide impetus to the sector’s steadfast growth. On the other hand, the rising interest rate would pose a risk to the micro, small and medium-sized enterprises (MSME) portfolio of lenders. Lastly, while keeping in mind that the whole world is undergoing massive digital transformation, India’s significant chunk of the MSME population that resides in tier 2, 3, and 4 cities lacks digital awareness and inclusion to a great extent. The government must introduce certain initiatives with a focus to train and coach the sector on the technological advancement and marketing front to spur digitisation across the country.

Budget 2023 Expectations LIVE: Here’s what Indians think about the new tax regime

Budget 2023 Expectations LIVE: Here's what Indians think about the new tax regime

Budget 2023 Expectations LIVE: Here’s how India can boost its outbound shipments

Announcement of measures such as quick refund of duties, resolving inverted duty issues and bringing exports through post and courier at par with standard customs clearances in the forthcoming Budget would significantly help boost the country’s outbound shipments, economic think tank GTRI said. Most forecasts say that 2023 will be tough on trade as large global economies are slowing down for many reasons and in this backdrop some extra push would help the exporting community of India, the Global Trade Research Initiative (GTRI) said.

We expect the budget to be favourable for the retail investors. Hopefully some positive steps should be taken on Capital Gains and income classification which will be a boon for the retail investors and traders. We also hope that the FM incentivizes Fintech start-ups especially those using AI. We can hopefully see positive news for manufacturing, Renewable Energy, Healthcare, EVs.

– Sumit Chanda, Founder and CEO, Jarvis Invest

Budget 2023 Expectations LIVE: Key demands from textile industry

  • Incentive scheme for textile value chain
  • Cotton Price Stabilisation Fund Scheme to push exports
  • Replace Technology Upgradation Fund Scheme with PLI type plan
  • Issue claims for 40,000 pending cases in ATUFS
  • Remove 11% import duty on cotton, and cotton waste to remain competitive against Bangladesh
  • Retain 5% import duty on all types of textile machinery; 5% import duty till March 31, 2023, 7.5% thereafter
  • Increase basic customs duty on imports of MMF Yarn to 10% from 5%
  • Restore duty-free imports facility against madeups exports
  • Cover cotton yarn exports under 3% interest equalization scheme

ET Poll: Indians want income tax cut; most prefer higher exemptions

ET Poll: Indians want income tax cut; most prefer higher exemptions

Budget 2023 Expectations LIVE: Agriculture industry’s wish list

  • Higher input subsidy on fertilisers and agrochemicals
  • Cheaper credit for the animal husbandry sector
  • Introduction of production-linked incentives for agrochemicals
  • Higher allocation of funds to the rural employment guarantee scheme

Budget 2023 Expectations LIVE: Delhi School of Public Policy Director Ram Singh on tax rules for capital gains

To make investments more efficient, Budget 2023 should rationalise and standardise tax rules for capital gains by streamlining the holding period, unifying tax rates across various asset classes and re-indexing the assessment of long-term capital gains, among other things. This would supplement the government’s other taxpayer-friendly initiatives and improve compliance further. Strategy to reward investments also includes reducing the regulatory load on the corporates and a higher share of the capital expenditure. There are better ways to reward the investors than reduce the top tax rates, especially when the capital market is robust and tax rates are increasing elsewhere.

Increasing the limit to claim tax deductions under section 80D will enhance affordability and encourage more people to opt for health insurance for their family and elderly parents

– Krishnan Ramachandran, MD, and CEO at Niva Bupa Health Insurance

Budget 2023 Expectations LIVE: Will Budget give impetus to ‘Make in India’ in defence?

  • The industry is looking towards a meaningful increase in capital budgetary allocations adjusted against the inflationary pressure and abnormal costs as highlighted above vis-à-vis the 13% y-o-y increase in the last year’s budget.
  • As the PLI scheme incentivises domestic production and can play a major role in developing the Micro, Small, and Medium Enterprises (MSME) ecosystem of the sector, similar schemes should be implemented for manufacturing defence products as well.
  • The lower corporate tax rate of 15%, which is currently available under the direct tax laws for new manufacturing companies, was extended by one year in budget 2022 i.e. till March 2024. Considering that the defence sector is capital intensive, for the industry to be able to reap its benefits, it is expected that the deadline should at least be extended till March 2026.
  • The government should consider extending the lower corporate tax rate of 15% to companies setting up MRO facilities as well.

Budget 2023 Expectations LIVE: Booster shots India’s healthcare sector needs from FM

  • Comprehensive insurance model to cover the missing population of India
  • Establishing a healthcare infrastructure fund
  • Tax benefits for healthcare skilling and development
  • Tax benefits on preventive health check-ups
  • Incentivization for digitization in the healthcare sector

Budget 2023 Expectations LIVE: An Indian shipping line can help the FM save $25 billion a year

India needs a shipping line of its own if it wants to become a serious manufacturer and exporter in the global stage, and the budget offers an opportunity to set the ball rolling on this front, says Ajay Sahai, DG & CEO of the Federation of Indian Export Organisations (FIEO).here are multiple issues that have to be addressed in logistics, and doing so will push up economic growth — all stakeholders agree on this. But Sahai explains how having a shipping line of global repute would help the country. “Last year, we remitted around $86 billion as transport freight charges only. The way our exports are increasing, this figure will cross $100 billion. And if we have an Indian shipping line that gets even 25% of this business, we would save around $25 billion a year,” says Sahai, at ET Online’s Rising Bharat Summit.It will also ensure that India is never at the “mercy” of foreign shipping lines.

Budget 2023 Expectations LIVE: Key demands of India’s renewable energy sector

Budget 2023 Expectations LIVE: Key demands of India's renewable energy sector

Budget 2023 Expectations LIVE: Renewable energy sector

Budget 2023 Expectations LIVE: Renewable energy sector

National Logistics Policy

The announcement of the National Logistics Policy has clearly laid out the direction to improve the efficiency and transparency of operations. Multiple interventions across the logistics ecosystem, that the National Logistics Policy defines, should be adequately funded by the budget so that its effects can be seen in the years to come.

Budget 2023 Expectations LIVE: Biofuels, green hydrogen sectors expecting PLI boost

India’s focus shift to other alternatives such as biofuels and green hydrogen is a must, as these alternatives while serving as a substitute for petroleum imports also have the added advantage of being environment friendly and future safe. As such, a PLI scheme catering to this sector would give the requisite impetus to the already developing manufacturing set-up for these alternatives.

Budget 2023 Expectations LIVE: Key demands from NBFCs

  • Active liquidity support system
  • Development of active secondary market of PTC
  • Lowering the loan limit for applicability of SARFAESI Act
  • Parity in Income Tax treatment on NPA provisions
  • Taxation of interest on NPAs on accrual basis