Union Budget 2019 Demands & Opinions for Nirmala Sitharaman

Exactly a week before the Budget 2019 presentation by Finance Minister Nirmala Sitharaman, the industry is coming forward from all corners with expectations and suggestions. The market of opinions and demands is active these days, the time has come when the finance minister gets huge attention from the nation. Being the first budget of the newly re-elected Modi government.

GST

"While staying on optimistic mode from the upcoming Budget 2019, we expect the Modi 2.0 to think towards the reduction in GST for remittances where the margin is wafer thin and is targeted towards financial inclusion. The current GST rates are levying a huge burden on the end consumers. The key announcements will be aimed at reducing tax burden for the middle class, encourage digital transactions, the exemption of TDS for retailers doing remittance and MSME segment. The government should take adequate steps to be taken to increase digital transactions in smaller cities and rural areas," Ashok Agarwal a practising CA from New Delhi suggested.

MSME Finance

The Modi 2.0 leadership has a well deserved and strong focus towards MSME sector. Recently, in the current parliament session, FM Nirmala Sitharaman herself spoke about MSME focus that the finance ministry has. And she explained the MSME credit scenario in the country. However, Modi Government's emphasis on MSMEs is far more serious and it means business, the evidence of this statement can be fetched from the new MSME Minister's appointment. Mr. Nitin Gadkari is known for making meaningful actions and result oriented game plans have taken charge of this sector. Recently, he spoke about MSME credit and MSME Banking landscape of the country. All such actions are indicating something bigger is getting prepared from the MSMEs.

Although the list of challenges faced by Indian MSMEs is long and a smart gameplan can resolve the MSME issues. This union budget seems to be a game changer in this direction.

Insurance

Meanwhile, big bang reforms are unanimously expected in the insurance sector. This budget is likely to create provision for making pension from life insurance products tax-free, and also provide tax exemption for life insurance pension plans under special sections. If such major announcements are made from the parliament by Hon’ble Finance Minister, Nirmala Sitharaman, the whole nation will enter into a new regime of financial stability and security. If this happens, this will indeed a historic move.

Digital Payments Outreach

Experts, who understand the financial footprint of the country, believes that the Modi 2.0 will focus on expanding the initiatives that they have taken in their previous regime. For example, these experts expect that the government should consider increasing digital transactions footprint in smaller cities and there is likely to be some level of incentive-driven approach for the better adoption of digital payments. Another expectation is related to the reduction in GST slabs for remittances where margin are wafer thin. Some also believe that GST coverage might get even broader.