Following a thumping victory in the Lok Sabha elections, the challenges before the Narendra Modi-led government is to give a boost to the slowing economy, as the GDP growth went below 6 per cent in the January-March quarter of financial year 2018-19, along with addressing the issues of joblessness, farmers distress and liquidity crisis in the NBFC segment. Now, everybody is looking up to Finance Minister Nirmala Sitharaman to see how she plots a course in her first Budget on July 5 to steer the economy out of the rough waters.
After the historic victory of PM Modi at the 17th Lok Sabha elections, the nation is looking forward to the announcement of the full-year Budget on July 5 with high hopes and aspirations. Most of us are optimistic about the fact that the allocations which were earmarked in the interim budget delivered in February this year will be retained in the final budget, said Ankit Agarwal, MD, Alankit Limited.
Although economic slowdown and joblessness are some of the major concerns, Agarwal hopes that instead of tax rebate announced in the interim Budget, tax exemption limit may be increased.
The salaried class can surely hope for good times ahead and plan their finances in a better way as the income tax exemption limit is likely to be increased. We believe the focus of the government in this budget session would be more on addressing questions on core subjects like job creation and economic growth, he said.
While the Reserve Bank of India has cut the repo rate to encourage consumption, Agarwal believes that measures like tax reliefs, monetary benefits will enhance disposable incomes of people, which would create a demand pool to lift the economy.
Tax reliefs for the middle class and schemes with monetary benefits for farmers & traders are expected to bring tremendous benefits for the country as a whole. Since one way of achieving a stronger economic growth is by bolstering the spending power of people, he said.
Agarwal also believe that, along with new measures, the promises made in the interim Budget will be implemented as the populist measures not only help the common man to realise his dreams, but also enhance his financial capability.
The interim budget had hinted at how the new government led by PM Modi is planning to fulfill the hopes of people across sections of the society. Assured income schemes for farmers and an increase in the income tax exemption limit for the salaried individuals shall greatly relieve their financial burden and boost their financial capabilities, said Agarwal.
There is no denying the fact that a populist approach defined by citizen-centric schemes and initiatives like affordable housing is the only way to help the common man realise his dreams. We do hope and expect that the promises made would soon be a reality after the announcement of the full-year Budget on July 5, he added.