Budget Wish List to Finance Minister
DPK Udas
;
Budget Memorandum to Finance Minister, Government of India
The task of making budget for financial year 2019-20 is tricky situation for Minister of Finance, Government of India.
On one hand there are huge expectations from people who have voted her party to Power but on other hand there is large gap with respect to fund requirements and actual collection. In fact last year Government had to prune their expenditure due to lack of funds.
The guidelines or wish list for making Budget this year shall be as follows
In April 2019 onwards consumer spending has gone down which has affected many sectors like Automobiles, Appliances, Clothing, food processing etc.
The overall suggestions are listed below
Government need to make slabs minimum and also less taxing to salaried class. The section 80CC limit of Rs 1.5 lacs is too less to save tax. This should be increased to Rs 3 lacs at least.
Also housing loan / education loan interest exemptions should be increased.
The Exports of India have more or less remained stagnant. India has capability and capacity to make export worthy products. However they are not able to bring business due to non-competitiveness in world market.
Following measures shall help.
Project Imports permit import of equipment at 5% customs duty. This makes domestic equipment not competitive. Thus owner of Project opts for Import alternative though same equipment is available in India.
The above notification permits import of cable terminations & connectors with NIL customs duty. This item is manufactured by many MSMEs and today they have idle capacity as buyers are preferring to import instead of buying from Indian company.
Overall Government need to encourage sale of Indian products and generate employment within country instead of shipping jobs overseas.
The above order indicates preference for “Make in India.”
In practice this is not followed by many state utilities and traders are selling imported goods.
Common man is investing in Mutual Funds to tide over situations like Marriage, Education, Medical treatment, purchase of asset etc. When value goes down Government is not helping but when there is increase then there is double taxation.
You need to review and simplify this.
Datt Udas
Datt.udas63@gmail.com
The task of making budget for financial year 2019-20 is tricky situation for Minister of Finance, Government of India.
On one hand there are huge expectations from people who have voted her party to Power but on other hand there is large gap with respect to fund requirements and actual collection. In fact last year Government had to prune their expenditure due to lack of funds.
The guidelines or wish list for making Budget this year shall be as follows
- Increase Spending Power of People so that domestic consumption goes up.
- Increase employment.
- More than adequate provision for Defense.
- Push for Farm Sector
- Education and Health higher outlay
In April 2019 onwards consumer spending has gone down which has affected many sectors like Automobiles, Appliances, Clothing, food processing etc.
The overall suggestions are listed below
- Income Tax slabs for salaried class
Government need to make slabs minimum and also less taxing to salaried class. The section 80CC limit of Rs 1.5 lacs is too less to save tax. This should be increased to Rs 3 lacs at least.
Also housing loan / education loan interest exemptions should be increased.
- Export Push
The Exports of India have more or less remained stagnant. India has capability and capacity to make export worthy products. However they are not able to bring business due to non-competitiveness in world market.
Following measures shall help.
- Concessional Finance
- MEIS rates and duty drawback rates to be enhanced.
- IGST refunds to exporters
- Export incentives to be extended to supplier in case of Merchant Exports
- Ports and Infrastructure
- Project Imports ,Chapter 98
Project Imports permit import of equipment at 5% customs duty. This makes domestic equipment not competitive. Thus owner of Project opts for Import alternative though same equipment is available in India.
- Notification No 25/2005 –customs dated 1/3/2005 to be scrapped
The above notification permits import of cable terminations & connectors with NIL customs duty. This item is manufactured by many MSMEs and today they have idle capacity as buyers are preferring to import instead of buying from Indian company.
Overall Government need to encourage sale of Indian products and generate employment within country instead of shipping jobs overseas.
- Public Procurement Order 2017
The above order indicates preference for “Make in India.”
In practice this is not followed by many state utilities and traders are selling imported goods.
- GST reach
- Bring Electricity & Petrol under GST
- GST refund to be available at airports for foreigners who are leaving country after visiting India. Similar arrangement is there in South Africa and other places. Earlier in GST council interaction it was revealed that it is their on Action Plan but not yet implemented.
- Capital gain on Mutual Fund Investments
Common man is investing in Mutual Funds to tide over situations like Marriage, Education, Medical treatment, purchase of asset etc. When value goes down Government is not helping but when there is increase then there is double taxation.
You need to review and simplify this.
Datt Udas
Datt.udas63@gmail.com
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