About a week is left for the presentation of the Budget 2022. This will be the fourth budget of Finance Minister Nirmala Sitharaman. Stock market, common man and economists have high hopes from this budget. Last year’s budget of Sitharaman was well received by the stock market. This budget is coming after the second wave of corona and between the third wave. Therefore, this budget can heal the suffering of the economy and the common man suffering from Corona. Let us know about those 10 measures, which will give great relief to the common man along with strengthening the economy.
1. Increase in Standard Deduction
The salaried class is expecting an increase in the standard deduction in this budget. Corona has increased the medical expenses of the people. Here, inflation, especially the rising prices of petrol and diesel, has made life difficult for the common man. This has worsened the household budget especially of middle class families. Hence there is a need to increase the standard deduction. The Finance Minister can increase it from Rs 50,000 to Rs 75,000 annually.
2. Reduction in GST on Health Insurance
There is a need to reduce the rate of GST on mediclaim policy premium. Right now it is 18 per cent. It should be reduced to 5 per cent. This will increase the demand for health policy among the people. At present, due to the 18 per cent tax, the premium is very high. Due to this many people shy away from taking a health policy. This time in the budget, Finance Minister Nirmala Sitharaman can make an announcement about this.
3. Measures to strengthen the economy
It is necessary to strengthen the economy. Economists believe that the government should again focus on measures to improve the fiscal situation. For the last two years, the government is spending more to deal with the corona epidemic. This has had an impact on the coffers of the government. On the other hand, there has also been a shortfall in tax collection. However, the situation is getting better now. In such a situation, there is a need to include the government in priority to increase infrastructure and employment.
4. Refund of Wealth Tax
Economists are in favor of imposing wealth tax again. He believes that imposition of wealth and inheritance tax will help in bridging the rapidly growing economic inequality in the society. The people belonging to the economically weaker sections have been affected the most by the corona pandemic. As a result, the gap between the poor and the rich has widened. This gap can be bridged to some extent by levying wealth and inheritance tax.
5. Separate deduction for work from home
The corona epidemic started in the year 2020. After the lockdown in March that year, a large number of people were forced to work from home. Work From Home (WFH) continues till now. Crores of people working especially in the private sector are working from home. Due to this many expenses including internet, electricity, furniture have increased. Therefore, a separate deduction can be announced in the budget for people doing work from home.
6. Concessions for Electric Vehicles
The government wants to promote the use of electric vehicles. This will reduce the use of fast-growing petrol and diesel. This will reduce dependence on petroleum imports. If the government brings electric vehicle loans under the category of priority lending, then it will increase the use of EVs. With this move, people will be able to get loans at cheap rates to buy electric vehicles. The auto industry believes that the government should also allocate more funds for research and development related to EVs.
7. Higher allocation for MGNREGA
Finance Minister Nirmala Sitharaman should make a big increase in the allocation of MGNREGA this time. A large number of people from the cities had returned to their villages since the start of the lockdown in the year 2020. Many of these people are still living in their villages. MNREGA is a big source of income for such people. This guarantees them employment for at least 100 days in a year.
8. Reduction in STT
There is a need to reduce the Securities Transaction Tax (STT) levied on trading of shares. The brokerage firms have conveyed their opinion in this regard to the Finance Minister. They believe that STT reduces profits of active traders. Customers of only brokerage firm Zerodha pay Rs 2,500 crore annually as STT, stamp duty and GST. STT was commissioned in 2004. Then Finance Minister P Chidambaram had announced to abolish LTCG. Then later LTCG was also implemented. Hence there is a need to eliminate CTT.
9. Focus on Renewable Energy Sector
The government needs to focus on the renewable energy sector. The reason for this is that the Narendra Modi government at the Center wants to reduce the use of conventional fuels (coal, petrol, diesel etc.) in the country. For this, there is a need to increase the capacity of renewable energy. Therefore, the government should promote R&D in this sector. Along with this, a policy to promote investment in this sector can also be announced in the budget.
10. Attractive Policy for Startups
The number of startups is increasing rapidly. Today’s youth wants to do something new. Instead of looking for a job, he wants to create job opportunities. To promote this, the government can announce an attractive policy for startups. The body representing startup companies believes that startups should continue to have startup status for 10 years after inception.
Read also: Union Budget 2022: Nirmala Sitharaman may increase the limit for tax-free contributions to PF
.