Budget Expectation - Mr. Abnish Kumar Sudhanshu, Director & Research Head, Amrapali Aadya Trading & Investments Pvt. Ltd.

Union Budget for 2017-18 on February 1: Keeping the up recent demonetization in mind, we expect upcoming union budget dated in Feb 1st to remain quite different from the earlier presented budgets. Since the demonetization has given many wounds to the Indian economy so expectoration from the government to inject recovery remedies are building high. The government tax revenue is likely to rise this year after the huge money inflow in the banking system along with government income disclosure scheme. We foresee, government to work on benefits of spanning taxation for individual users as well as to work on bringing down the corporate tax rates, as earlier highlighted by the Finance Minister in his last year budget speech. Further, government is likely to focus towards economic development, infrastructure development along with defense enlargement. Historic decision on demonetization taken by Modi govt, has impacted rural economy activity badly, is likely to have aid boosters for the rural India.

Chucking the conventional method of presenting railways budget separately since 92 years, upcoming union budget would be interesting to watch as first unique budget having incorporating railways budget in it. Apart from that, government has put its best to bring reforms on the platform, hence our expectation for more reforms with action plans are high. The Union Budget FY18 is likely to be taxpayer-friendly after the painful implementation & execution of demonetization drive. Moreover, the government may look up for new income tax slabs for the salaried class. At the same time, there may be reduction in corporate taxes in a phased manner as stated above. Further, government could also look for some boosters in the housing sectors. As the most discussed Goods and Service Tax is at an important stage as it expected to be implemented from July1, 2017. The government will also have to see allocation of funds for various sectors to expedite growth of the economy. We anticipate sectors like Housing, Infrastructure, irrigation, banking and social sector to draw more attention during the budget.

Since we are into the lower interest rate cycle, so expectation of money being channelized to market linked products like equity is high. Hence, relief on capital gain tax could be highly rewarded for the investors taking the risk in the market.

Source : Equity Bulls

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