What Can Businessmen Expect From Budget 2020
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With the budget right around the corner, there are many expectations of people from different sectors and different walks of life. After what can only be described as a turbulent year, the whole country will be hoping that the Modi government comes up with a few decisions that can help uplift the economy. PM Modi himself has been seen taking an active role in the decision making process in the lead up to the budget, and experts across the board are seeing this as a sign of the government taking some innovative steps to arrest the economic slowdown that has plagued the country over the last year.
One of the bigger questions that arise from the pre-budget activities is - what can businessmen expect from the upcoming budget? As many experts have stated, the need to create more jobs in the coming year is a lot more pertinent now if the Indian economy is to recover, and for that to happen, business owners and entrepreneurs need to be empowered. Despite a few relaxations to some of the regulations including angel tax, there are still a number of changes that could be in the pipelines to make life better for businessmen in the country and enable them to play a larger role in the growth of India’s economy.
Is Corporate Rate Tax is the Thing?
Maintain the Lower Corporate Tax Rate One of the biggest regulations in favour of businesses in recent times is the lowering of corporate tax rates to 22per cent. This has helped quite a few companies, especially start-ups, grow or scale up with more money being freed up for re-investment. In fact, many are hoping for the tax rates to be brought further down, as that would improve the financial strength of the companies and in turn enable them to contribute to the growth of the Indian economy. While it remains to be seen whether the corporate tax rates will be lowered, businessmen can certainly expect the rates to be maintained.
GST Structure Revision One of the biggest challenges of the current GST structure is the fact that it is often termed as not very friendly for private sector companies. There have been calls to make some positive changes to the GST policies for a long time now and with the government now trying to empower all small and large business owners, some amendments to make the structure a little more convenient can be expected in the upcoming budget.
Infrastructure and Manufacturing
Boost for Construction and Manufacturing In recently released official data by the central government, it was declared that manufacturing will see a growth of only about 2per cent over 2019-20, while construction is expected to grow by just 3.2per cent over the same period. Both these figures are causes for concern, as such miniscule growth rates will result in huge losses for the major businesses involved. The Modi government has already addressed this concern and also announced that there are plans to boost these two crucial sectors. In the upcoming budget, one can expect these plans to be put in place to accelerate the revival of construction and manufacturing, among other sectors. One of the steps that might be announced is offering subsidies on loans taken by local mobile manufacturers, with the government viewing this as a step to attract major mobile brands like Samsung and Apple to move production to India.
Taking The Graph Back on Track
Sector Focused Policies Over the last one year, several sectors have witnessed a downward spiral, with the chief among them being telecom, automobile, real estate, and NBFCs. The government is expected to announce some bold measures to address these concerns and businessmen involved in these sectors will surely be on the lookout for any changes or new regulations being introduced.
With the country facing one of the biggest slowdowns in years, a lot will be riding on the budget presented by Finance Minister Nirmala Sitharaman. As PM Narendra Modi is taking a lot more active part in the policy-making this time around, speaking to businessmen from different sectors to understand the concerns, this budget could be one to implement some bold steps for the growth of businesses and the economy on the whole.