Amidst the country’s massive recovery plan from the pandemic, the Union Budget 2021-22 is thought to be the epicenter of a robust fiscal strategy for post-pandemic economic revival.
Union Budget 2021-22 Announcement: When & by Whom?
The Union Budget is to be presented on the 1st of February, at 11am by our Finance Minister (FM), Nirmala Sitharaman. It will be interesting to know whether FM Sitharaman, in her third Budget session, breaks the last year’s record of the largest Budget announcement in India’s history.
Budget 2021: Expectations
From tax deductions to creating jobs, the Union Budget is expected to bring significant changes for a new, geared up India. With concerns over the impact of the pandemic on India’s economy and GDP growth in 2020, citizens are keenly eyeing on Budget 2021.
Here, we pen down some crucial expectations from Budget 2021-22:
Strengthen the Healthcare Infrastructure
With a healthcare allocation that is just 1% of GDP, it is highly inadequate for a significant leap in the sector. It is expected that the healthcare allocation in the upcoming Budget would be around 2% of the GDP, to change this scenario substantially. Moreover, with significant healthcare expenditure observed across the country since 2020 amid the pandemic, the Government should consider increasing investment towards healthcare technology framework. Additionally, with extensive Research and Development (R&D) that went about in the development of vaccines and medications, 2020 underlined the criticality of the R&D arm of the nation. Hence, government should consider offering subjective tax reliefs for R&D expenses, especially for the healthcare industry.
Tax Relief in the Real Estate Sector
The downfall of the real estate sector after the pandemic has raised concerns for those dealing in this market. While the fair market values dropped, the stamp duty rates have remained unchanged. Additionally, while the properties are sold on dropped fair market value, tax calculations depend on the stamp duty value, further raising major concerns. Thus, Budget 2021 is expected to bring considerable amendments, offering tax reliefs.
Digital Infrastructure Enhancement
Digital infrastructure and virtual business models have transformed the education and other business sectors during 2020. While in the state of lockdown, the nation revisited the idea of digitization in a transformational way. From digital boards to utilization of virtual reality for learning, India has witnessed a major digital transformation. Pushing the legacy further, the government must strengthen the digital infrastructure for education sector and businesses.
Corporate Tax Relief
Previous year’s Budget provided 15% reduction in corporate tax rates for manufacturing firms and 22% for other companies. While further tax cuts may seem like a far-fetched idea, adjusting previous year’s financial losses through relief and flexibility in investments can be expected from Budget 2021.
Stressed Industries & Sectors
Industries like tourism, aviation, food and beverages, etc. suffered substantial losses due to the pandemic followed by a nation-wide lockdown. This was majorly due to the lesser virtual opportunities, resulting in lesser scope of recovery for these sectors. In light of this, the government is expected to provide relief to these sectors considering a loss-carrying-forward window until they recover.
Happy Customers of Bajaj Markets
Getting a loan to take care of my wedding and relieving my parents to enjoy the occasion was the best decision I ever made. Easy-to-apply, amazing interest rate and quick disbursal, what more can one ask for!
I am passionate about the vehicle I drive and hence I wan't to protect it with the best available option. What amazed me about Bajaj Markets was full transparency, quick quotes and the attractive discount on the premium while choosing annual payment option!
My husband and I will finally move into our own house this Diwali. All thanks to Bajaj Markets, with competitive interest rates, minimal processing fees and easy to repay EMIs, our dream saw the light of reality in no time!
Kids grow up fast and to fulfill their dream trip to Disneyland I had everything but instant funds. With no collateral or guarantor required and a hassle-free processing, I gifted my family a memorable trip to Paris just at the click of a mouse!
The best way to start looking for health insurance is not a 60 minute meeting with an insurance sales person but with a close study of my coverage needs and checking the insurance company's claim ratio. No unnecessary jargons, easy to apply claims process and choice of premiums, what else could I have asked for as a newbie!
I bought my first iPhone using my Bajaj Finserv EMI Network Card. Zero downpayment, No cost EMI on Bajaj Markets EMI store and the smile on my dad's face just made my day!