About a week is left for the presentation of the 2022 Budget. This will be the fourth budget of the Minister of Finance, Nirmala Sitharaman. The stock market, the common man, and economists have high hopes for this budget. Sitharaman’s budget last year was well received by the stock market. This budget comes after the second crown wave and between the third wave. Therefore, this budget can cure the suffering of the economy and the common man who suffers Crown. Let us know these 10 measures, which will give great relief to the common man along with the strengthening of the economy.
1. Increase in standard deduction
The salaried class expects an increase in the standard deduction in this budget. Corona has increased people’s medical expenses. Here, inflation, especially rising gasoline and diesel prices, has made life easier for the common man. This has worsened the family budget, especially of middle-class families. Therefore, the standard deduction needs to be increased. The Minister of Finance may increase it from Rs 50,000 to Rs 75,000 per annum.
2. Reduction of the VAT of the medical insurance
The GST rate on the mediclaim policy premium needs to be reduced. Right now it’s 18 percent. It should be reduced to 5 percent. This will increase the demand for health policies among the population. Currently, due to the 18 percent tax, the premium is very high. Because of this, many people avoid taking a health policy. This time in the budget, Finance Minister Nirmala Sitharaman can make an announcement about it.
3. Measures to strengthen the economy
The economy needs to be strengthened. Economists believe the government should refocus on measures to improve the fiscal situation. Over the past two years, the government is spending more to deal with the crown epidemic. This has had an impact on government coffers. On the other hand, there has also been a deficit in tax collection. However, the situation is improving now. In this situation, government needs to be included as a priority to increase infrastructure and employment.
4. Refund of Wealth Tax
Economists are in favor of re-imposing wealth tax. He believes that the imposition of wealth and inheritance tax will help save the rapidly growing economic inequality in society. People belonging to the economically weaker sectors have been the hardest hit by the crown pandemic. As a result, the gap between the poor and the rich has widened. This gap can be bridged to some extent by collecting wealth and inheritance tax.
5. Separate deduction for work from home
The crown epidemic began in 2020. After the March confinement of that year, a large number of people were forced to work from home. Work from home (WFH) continues to this day. Thousands of people working especially in the private sector work from home. Because of this, many expenses such as internet, electricity and furniture have increased. Therefore, a separate budget deduction can be announced for people who work from home.
6. Concessions for electric vehicles
The government wants to promote the use of the electric vehicle. This will reduce the use of fast-growing gasoline and diesel. This will reduce dependence on oil imports. If the government incorporates electric vehicle loans into the category of priority loans, it will increase the use of electric vehicles. With this measure, people will be able to get loans at affordable prices to buy electric vehicles. The auto industry believes the government should also allocate more funds to research and development related to electric vehicles.
7. Greater endowment for MGNREGA
Finance Minister Nirmala Sitharaman should make a big increase in MGNREGA allocation this time. A large number of people in the cities had returned to their villages since the beginning of the confinement in 2020. Many of these people still live in their villages. MNREGA is a great source of income for these people. This guarantees them work for at least 100 days a year.
8. Reduction of STT
It is necessary to reduce the securities transaction tax (STT) levied on stock trading. Brokerage companies have sent their opinion in this regard to the Minister of Finance. They believe that STT reduces the profits of active traders. Clients of the sole brokerage firm Zerodha pay Rs 2.5 billion a year as STT, stamp duty and GST. STT was put into operation in 2004. At the time, Finance Minister P Chidambaram had announced the abolition of LTCG. Then LTCG was also implemented. Therefore, the CTT needs to be removed.
9. Focus on the renewable energy sector
The government needs to focus on the renewable energy sector. The reason for this is that the Narendra Modi government in the Center wants to reduce the use of conventional fuels (coal, gasoline, diesel, etc.) in the country. To do this, it is necessary to increase the capacity of renewable energies. Therefore, the government should promote R&D in this sector. At the same time, a policy to encourage investment in this sector can also be announced in the budget.
10. Attractive policy for startups
The number of startups is growing rapidly. Today’s young people want to do something new. Instead of looking for work, he wants to create job opportunities. To promote this, the government can announce an attractive policy for startups. The body representing emerging companies believes that startups should continue to have the status of startups for 10 years after their creation.
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