Union Budget 2021-22: Lower taxes, job creation on wish list

All are waiting for Union Budget 2021-22 to be presented by finance minister Nirmala Sitharaman on Monday at 11am. Prime Minister Narendra Modi has said the budget for 2021-22 will be seen as a continuation of the string of economic packages that the finance minister had announced in the last few months.

The finance minister has also indicated that this will be a unique budget to boost the economy of the nation. Several sectors of the economy have their hopes pinned on the upcoming budget.
Some of the expectations are here as follows:

• Lower tax burden: Lower tax regime and proper tax compliance may help in the collection of better tax revenues. Also, more money in the hands of taxpayers will boost expenditure by people. The finance minister needs to reduce complexity and probability of disputes. The slab rate for 28 per cent needs to be abolished and merged with 18 per cent GST.
• Public health: The budget is likely to boost public health spending in the wake of the Covid-19 pandemic. Economic Survey 2021-22 has sought an increase in public health spending to 2.5-3 per cent of GDP.
• Growth in economy: With the vaccination drive in place and recovery in consumption, the Economic Survey has projected a growth of 11 per cent for the economy, a V-shaped recovery in growth. Though the economy is expected to contract by 7.7 per cent in 2020-21, the growth projection comes in the backdrop of the International Monetary Fund’s recent forecast that said India would be the fastest growing major economy in the world with a growth of 11.5 per cent in 2021-22. The higher government spending is desirable for better infrastructure and quality review of assets of banks in India.
• Real estate: The real estate sector has been hit hardest by the pandemic. It looks for the Union budget to ease regulatory norms and for steps which will help in completion of pending projects and sale of build-up houses. The sector has also been demanding infrastructure status. Steps are needed to provide housing to middle class.
• Creating jobs: The government should kick-start economic recovery and growth by boosting private investment and creating jobs.
• Fresh round of fiscal stimulus:It is needed to support economic growth, fiscal consolidation and strengthening of the financial sector that would help overcome the impact of Covid-19 on the economy.
• Moderate inflation: The finance minister should take steps for lower inflation in the coming months. It will help the Reserve Bank of India to further cut rates.

The writer is a tax advocate