10 things to expect from FM in this Union Budget
Following are some of sectors which the Finance Minister will be concentrating in his maiden budget:
1.
Food
inflation
control
high
on
agenda:
Unable
to
curb
high
inflation
and
hoarding
was
one
of
the
key
factor
behind
last
UPA
Government's
downfall.
Hence,
expectations
are
at
peak
from
the
Narendra
Modi
Government
as
inflation
rate
is
hovering
around
8
per
cent
in
May.
Containing
spiralling
prices
is
among
the
top
priorities,
while
the
Reserve
Bank
have
made
it
clear
that
efforts
on
this
front
would
continue.
Onion
prices
have
shot
up
40
per
cent
in
the
last
two
weeks
to
Rs
18.50
per
kg
at
Lasalgaon,
the
country's
largest
wholesale
market
for
the
edible
bulb,
despite
the
imposition
of
minimum
export
price
on
the
vegetable
to
check
its
domestic
rates
from
going
up.
Expectations
of
poor
monsoon
has
further
lead
to
rise
in
prices
of
essential
commodities.
Inflation rate is hovering around 8 per cent in May
2. Infrastructure: Infrastructure is another important sector in which the Government may look forward to create new investment opportunity to compete with the global market. The Government is likely to introduce infrastructure business trust method to encourage investment with help of public-private partnership to build large pending projects. These trusts will be registered under SEBI and offered range of tax incentives.
3. Black money: Bringing back unaccounted money stashed in foreign bank in one of the top priority. The Narendra Modi Government's efforts to crack down black money abroad will have a significant boost in the Indian economy. The Swiss Government have already extended necessary support to the SIT on black money and is willing to work with NDA Government in power.
4. FDI: The NDA Government should also give a right signal on FDI(foreign direct investment) in retail, defence, railway and infrastructure sector. Though BJP clearly promised FDI in certain sectors to generate employment but Minister of commerce(independent charge), Nirmala Sitharaman has clearly ruled out FDI in retail sector." The need of the hour for the Government is to bring the nation back on the growth track to attract investments. Finance Secretary Arvind Mayaram recently said that the country should prefer FDI route over FII for economic growth. "I believe our potential growth Rate is 8 per cent. And to get their, we need to develop resources. And that which cannot generate domestically must come from outside and if it comes from outside then we prefer it in the form of foreign direct investment(FDI) rather than foreign institutional investment(FII)," Mayaram said.
5. Women's safety: While 1,000 crore more money was allocated to Nirbhaya Fund in the interim budget under UPA, little was done by the Government for the safety of women in the country. All eyes will be on the Narendra Modi Government who has constantly mocked Congress for not using a single penny from the Nirbhaya Fund allocated for the safety and security of women. Infact, recent Badaun incident which even got the attention of international media and UN which raised serious concern on the safety and sanitation for women in India. The United Nation condemned the violence of girls and women across India and termed it appalling and a human right's issue. The budget 2014 should definitely have some plan to implement if Funds allocated for women.
6. Agriculture sector: Blaming the El-Nino, scientists and Met Department have already warned of a possible drought due to weak monsoon. Farmer's suicide and drought should be kept if mind while allocation of funds in agricultural sector.
7. Defence: Liberalization of foreign investment for example in Defence production needs to be looked after.
8. Cleaning of Ganga: Rejunavation of Ganga is also on the cards
9. Health sector: Health Minister Dr Harsh Vardhan has already talked about bringing AIIMs in every State to improve medical facilities. Also Narendra Modi Government is likely to bring a number of drugs under price control ambit which will plunge their prices by 10 to 15%. Price rise will be the focus of this budget with Government already under pressure over food inflation.
10. Building investor's confidence and tax incentives in research and development: The new Government will be focusing more on building investor's confidence which was lost under UPA due to rampant corruption and wrong developmental policies. In order to encourage Research and Development, certain tax incentives are also needed.