For the kind attention of Mr. FM
This is to bring into your notice that now the expectations are higher from each and every sector. You are not new to such attention from society at large. Plenty of things have been delivered in the last seven budgets you have presented and plenty more are being asked for. People are still skeptical whether you will be able to meet these demands as you are facing capacity constraints at your end. Your revenue sources have shrinked more than what you are spending, so is your current account deficit. Manufacturing growth has stalled and consumption story on which India was driving since last so many years have taken a back burner due to higher inflation and higher interest rates. Rampage in rise of Petrol, Diesel and Petroleum Products prices will further add misery to common man. Here are the few expectations that various sectors and the common man is eyeing on in this budget:
The infrastructural planning is what is required very urgently by your government. Delays in government projects, funding issues and under spending is what we have seen in these projects. The fear is that the same might continue considering the deficit at 5.4% of the GDP. Coal allocation and linkages for mega power projects in the country should be done in a speedy manner. Though this is not a prerogative only at the time of budget but a roadmap of investment and most importantly its implementation is required from your end. Delay in government nod for infrastructure projects and the high lead time is adversely impacting the growth of the country. So Mr FM, please look into the matter on an urgent basis.
Many believe and as you know that the commodity markets is in nascent stage. A very highly volume driven market and a potential to grow at a fast pace but imposition of transaction tax on commodities will have negative impact. This sector is asking a soft stance from your end. Imposition of commodities transaction tax will only motivate the volumes to be shifted to grey markets where the transaction is done without any margins and taxes. Year after Year this sector has waited for more powers to Forward Market Commission (FMC) instead of this a transaction tax is totally uncalled for.
Jewelers and Gold Importers
Gold import duties of 6% are expected to be increased to 8% bearing in mind heavy Gold imports in the country. Jewelers lobby is asking for reforms that will induce Gold stored by individuals to come in the markets and be a part of supply chain. This will fill the gap of demand and supply. On the contrary, a rise in import duties will encourage smuggling of Gold in the country.
We know that this is an area of great concern to you Mr FM and you are committed to reduce the heavy outflows from the country due to imports. But channelization is an optimal solution to this problem.
Tax exemption limits for middle class
Salaried middle class is looking that you will increase exemption limit of income tax to Rs 3 lakhs in this budget. The tax free income has been lagging behind inflation for quite some time now and therefore they are asking for the increase in deductions under medical and children allowance. The aspirations are higher considering the CPI inflation rates at 10.8%. Your little help will give gasping space to plenty of middle class population in the country.
Home loan (Owners and Seekers)
Those who are seeking home loans and those who already owe a home loan are expecting that this budget will bring increase in the deduction limit of home loan interest of Rs 150000. This limit has remained unchanged since 2001. Increasing this limit to Rs 200000 or 250000 lakhs will be a welcome step.
These are some of the urgent and easy to do requests. Catering of these demands will help these sectors grow. Some of the demands like exemption limit hike and increase of deductions under home loan interest will benefit large number of Indian middle classes and mango man.
We request you to consider this request in your eighth budget. The Common Man of India is eagerly waiting for your budget speech now.