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Friday, January 27, 2023

Union budget for 2023: this is what the market expects from the next budget

The budget countdown has begun. Parliament’s budget session is likely to begin on January 31, 2023, and is expected to conclude on April 6, 2023, with a middle recess.

Finance Minister Nirmala Sitaraman is likely to introduce the Union Budget to Parliament on February 1, 2023, with the first part of the session expected to continue until February 10, 2023.

Markets have been moving sideways for the past month and benchmark indices have been mostly flat. Corporate earnings season has failed to excite the markets. One of the main reasons for this subdued performance could be that foreign investors are pulling funds out of India in search of emerging markets with cheaper valuations.

Stock investors expect a balanced budget focused on job creation, increased spending on infrastructure, deficit control and economic recovery, according to experts.

“To put more money in the hands of our people, the government should also consider removing the tax on dividend payments, reducing the tax bracket for investors and increasing the base level of tax exemption from Rs 2.5 lakh to Rs 5 lakh. lakh or more. More cash in people’s hands will mean more money to invest,” said Puneet Maheshwari, director of Upstox.

2022 was a landmark year for the Indian real estate sector with residential home sales increasing by more than 50% compared to 2021. Although the sector has seen many regulatory and procedural changes, it is still known as a non-profit sector. organized. Being the second largest contributor to India’s GDP, the sector wishes to be granted industry status. This will make the sector more organized and improve transparency in its operations.

Meanwhile, Non-Bank Financial Corporations (NBFCs) look to the budget early. They want the government to prioritize the following areas to enable them to extend credit smoothly.

The auto industry has requested streamlining of the Goods and Services Tax (GST) to ensure they fall into the lowest tax bracket.

“If one has to ask for a wish list, I think streamlining the GST fee structure for the auto component industry. When the GST was announced in 2017, the component industry had 219 of these tariff lines, 40% were at 18% GST. Over the years, we have worked with the government and today, 60% of these tariff lines are at 18% and 40% remain,” said Vinnie Mehta, CEO of the Automotive Component Manufacturers Association (ACMA). .

“I hope that in the next few years, even these 28% rates will become 18%,” he added.

Written by Simran Bafna

The post Union Budget 2023: This is what the market expects from the next budget appeared first on Trade Brains.

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