Union Budget for the financial year 2018-2019 will be the debut post-GST Indian budget apart from the last full budget before the 2019 general elections which is forecasted to go on announcement on 1.2.2018 by Finance Minister Arun Jaitley. The budget session is anticipated to start on 30th January 2018 by President Ram Nath Kovind who will discuss the joint session of both the houses. The Economic Survey would be held on 31st January 2018. This is also the 5th budget presentation in a series for Arun Jaitley.
Tax Structure- This year in 2018, the indirect tax slab of the nation was offered a facelift with the new Goods and Services Tax (GST) regime. For the Union Budget 2018, we can find changes in the direct tax structure comprising income tax. The present government opines that the tax base in the country requires to be broadened to eliminate tax evasion. Further, the tax indices required to be rationalised. To analyse the ongoing structure of direct taxes in the nation and the associated exemption terms, a task force has been formed by the government which is chaired by CBDT member Arbind Modi. The thought is to establish direct taxes extra contemporary so that it suits the present needs.
Infrastructure is the most expected priority in the forthcoming Budget 2018. Arun Jaitley claimed that the government wishes to balance the momentum at point new infrastructure is being grown in the nation. The latest budget will place impetus on growing rural infrastructure. In the Bharatmala project, the largest ever highway development plan has already been sanctioned by the government. Urban infrastructure, housing, water & sanitation wants are too predicted to be discussed at the fresh budget announcement. Presently that the Railway Budget has also been linked with Union Budget, railway infrastructure will be part of the important topic. There is urgent requirement for investment in railway infrastructure for the framework of stations and trains.
Recapitalisation of Public Sector Banks – A big recapitalisation plan was issued by the government in the month of October to match the increasing bad loans of public sector units banks. The plan is valued at Rs 2.11 Lakh Crores out of which INR 1,35,00 crore will be in the shape of front-loaded recapitalisation bonds. Although the government has not parted the information on the types of bonds or the interest rates on these bonds, the news itself has made big a buzz in the bonds & equity markets. The government is forecasted to make over Rs 70,000 crore by Feb 2018 and the budget will too be released in the same period.