Arihant Capital Markets Ltd

Published on 29/01/2021 11:22:54 AM

BUDGET REVIEW (FY21-22)

Expansionary budget; Infra spending expected to be higher while maintaining an eye on fiscal consolidation

In a year where the country hopes to recover from the corona virus pandemic, the responsibility will be on Finance Minister to bring much needed relief for sectors that got badly impacted , while also ensuring that the economy bounces back. From bringing back jobs in the market to tax deductions, there are a lot of expectations from Budget 2021. India’s Honourable Finance Minister Nirmala Sitharaman is set to announce the annual Paperless budget on February 1, 2021 for the first time in the history of India.

Key Budget Expectations:

• Restructuring GST and GST rate cut specifically for manufacturing and retail
• Recapitalisation of public sector banks
• Special focus on the Hospitality Sector
• Expectation of increase in FDI for Insurance sector from 49% to 75%.
• Introduction of National Retail policy for ease of doing business
• Consequential amendment needed after abolition of Dividend Distribution Tax
• SGB scheme: Amending Section-47 with reference to Sovereign Gold Bonds scheme: Expectations from the budget is that section 47 to be amended with reference to any particular year (2015) of Sovereign Gold Bonds scheme

Tags: Union Budget

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