The Union Budget of India is a yearly financial statement that outlines the government's revenue and expenditure for the upcoming financial year. It is one of the country's most closely watched events and is scrutinized by economists, investors, businesses, and the general public.
In the upcoming Union Budget 2023, there are several expectations from various sectors of the economy. In this blog, you'll get to know about Union Budget 2023 Expectations of the different sectors:
This sector, through the Budget, expects the privatization of public sector banks (PSBs). The experts believe that the journey of the privatization of PSBs will improve operational efficiency and increase their financial inclusion in the country.
The MSME sector anticipates an easier credit line which is one of the basic requirements because supply chain difficulties and late payments suffocate their operating cash. In the Budget of 2023, the Credit Guarantee Scheme for Micro and Small Enterprises could be rebuilt. The government might also reveal full integration of the e-Shram, Udyam, National Career Service, and ASEEM portals in the Budget.
Agriculture is known as one of the main sources of employment in India. As per every year, this year also, the FM is expected to provide measures that will help boost the agriculture sector. The boost in this sector can happen by building roads and bridges and supporting the farmer financially.
The healthcare sector has been the prime focus of the past two years' Budget because of the pandemic. It is expected that the Budget of this sector should be increased by 20% minimum compared to the previous year, which may be allocated to the different departments of this sector. These departments can be infrastructure, research, education, etc.
During the pandemic, when flights were banned, the aviation industry took a massive hit in the two years. And now, when the flights are working, jet fuel prices are increasing tremendously. The aviation industry seeks financial relief from the government through this union budget.
It is expected that there will be tax reforms that the government may announce. Their main aim should be to reduce the tax burden and make the system very easy to understand. They may make a more straightforward tax regime and reduce the taxpayers' burden.
The telecom industry is requesting government assistance for their infrastructure growth to deploy 5G networks in more cities and internet connection in rural areas. They also expect tax breaks to help them secure investments and regulations that support fair competition.
The Cellular Operators Association of India is a non-government association focusing on the telecom business in India. They have provided the government with several recommendations before the union budget.
Another thing that the business owners may expect from this Budget is that the government may announce measures to help the country attract foreign business and give the coming generation a chance to own their business. This may be done by simplifying the business procedure and reducing red tape.
One of the Modi government’s dreams is to create a Digital India. So, in this last Budget of the current government, it is expected that they might announce some measures which may strengthen this aim. This can be done in various ways, like investing in digital infrastructure and announcing tax incentives to entities investing in the digital world.
With the hike in the prices of Petrol and Diesel and the crises that are more often than not associated with it, the government may announce subsidies which the Society of Manufacturers of Electric Vehicles had recommended. This may influence the citizens to switch to electric vehicles.
Cryptocurrency is one of the most dangerous tradings, and its prices can change anytime. At present in India, there are no rules and regulations that govern them. As of the last Budget, only the capital gains are taxable with no deductions. With an increase in crypto trading, it is expected that regulations on this trading can be introduced in the union budget.
Since the onset of COVID, the hospitality sector has been the worst hit. But in the current fiscal year, it has recovered significantly and has been growing tremendously. This sector expects the government to clarify the GST rates, which may help to control the rising prices.
The demand for real estate dropped during the pandemic and has also started growing in the current year. This sector expects easy home loans for people who want to buy a house.
The logistics sector is one of the important sectors. If the logistics cost is high, it will also affect the prices of the different products that travel between the cities. The National Logistics Policy is expected to be implemented in this budget. This will help to help lower the cost. The logistics costs of India are approx. 14% of GDP.
These are some of the key expectations for the upcoming Union Budget. The 2023 Union Budget is expected to focus on reviving the Indian economy and improving the people's standard of living. The government will likely announce measures to boost economic growth, improve infrastructure, and create job opportunities.
The government is under pressure to deliver a budget that addresses the challenges faced by the economy and the general public, and it remains to see how well it will be able to meet these expectations.
