The ruling party of India has promised that Finance Minister Nirmala Sitharaman will present her game-changer plan to boost economic growth in the Union Budget to be presented on 1 February 2020 today. As the Modi government is trying to bring the country’s economy back on track. In such a situation, here we are discussing some such topics, in which there may be some special focus in the budget.
Health care expenses may increase
India may increase its healthcare spending to 2 times for the next financial year. Healthcare spending in the country can be targeted to increase to 4% of GDP in the next 4 years. Explain that in the country during the Corona epidemic, there is a widespread lack of basic facilities related to health care. The government may increase the health tax from the existing 1% of income and corporate tax to fund the new program.
Focus will be on personalization
In this budget, it can be targeted to raise $ 40 billion from the disinvestment of PSU companies related to energy, mining, banking, sector. Apart from this, there may also be an announcement to sell a minority stake in big companies like Life Insurance.
Bad bank can be made
RBI hopes that due to Corona epidemic, there will be a glut of bad loans in the banking system. In order to boost lending in the economy and increase their valuation before stake in PSBs, the government may finally announce the creation of a bad bank. In this bad bank, the bad assets of public sector banks will be kept. Later they will be sold at a discounted price in the market.
Development financial institution
A 1.02 lakh crore infrastructure development target has been set in India. However, financing of these projects will be quite challenging in the present circumstances. For this, Finance Minister Nirmala Sitharaman can announce a Dedicated Development Financial Institution in the coming budget through which the financing of greenfield (new infrastructure projects) will be done.
Import duty import duty
To boost domestic manufacturing in India and boost self-reliant India, India is considering increasing import duty by 5-10% on more than 50 items. These items include smartphones, electronic parts, and appliances. Today related announcements are possible in the upcoming budget.