Union finance minister Nirmala Sitharaman’s pre-election budget is set to focus on welfare schemes for five key sections of society—women, poor, youth, farmers and tribals—as the Bharatiya Janata Party (BJP)-led National Democratic Alliance (NDA) aims a third term in office on the back of Prime Minister Narendra Modi’s promise of inclusive growth.
Accordingly, allocations for existing schemes for these sections of the society are likely to see an enhancement while new schemes may be announced, two persons privy to discussions in the government said.
Schemes meant for these sections of the society will get emphasis in the budget. For example, education and skill development will get special attention, addressing the aspirations of the youth.
Anuj Bajpai, Founder & CEO, Liquide, believes that with general elections around the corner, the interim Budget may feature measures with mass appeal, such as tax reductions or subsidies. However, any major announcements in the interim Budget seem unlikely, he added.
With general assembly elections around the corner, the interim Budget is expected to focus heavily on meeting its fiscal deficit targets and expenditure demands till the next government is elected. Finance Minister Nirmala Sitharaman has already indicated that the upcoming Budget will primarily focus on meeting government expenses until the formation of a new government. So, any major announcements in the interim Budget seem unlikely. However, as GA elections are near, the Budget may feature measures with mass appeal, such as tax reductions or subsidies, and there could be opportunities to streamline tax brackets and rules for individual taxpayers. In terms of themes, we are looking at infra, power, banking, and auto with much zeal for the next year. The same is reflected in the picks for our flagship “India Growth” basket.
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