The Union Budget is set to be presented by Finance Minister Nirmala Sitharaman of 1st February. Similar like the previous year’s budget, this year also the minister will skirt the paper format for the digital. This year’s budget will be the last full Indian Budget before the general election rings in 2024. Most experts believe Budget 2023 will take a balanced approach towards fiscal consolidation and economic growth while focusing more on capital expenditure on infrastructure (including defence, railway, roads, etc.), widening production-linked incentive schemes for more sectors, boosting rural demand and divestment targets.
Looming global economic slowdown and a pandemic has left common man worrying about inflation as the Budget 2023 is around the corner. Layoffs in US and Europe is keeping the mood of people cautiously optimistic. Union Budget will test the government’s resort as expectations of lower taxes and further boost to production gather steam before national elections.
Nation’s vast middle class may get a relief as finance minister may alter income-tax slabs and increase spend on the poor through programs such as rural jobs, while ramping up financial incentives for local manufacturing, according to economists and reports in local media.
Income Tax slab revision for 2023-24:
The highest slab rate for individual taxpayer is currently at 42.744 % which is higher than the corporate tax rate of 25 %. People are expecting the highest tax slab rates from 30 % to 25 %.
Real estate opportunities from Budget
As the Indian real estate market emerges from the shadow of a global epidemic, it has high expectations for Budget 2023. Despite the fact that demand for real estate in India has increased in recent months, the real estate and construction industries are hoping for some specific relief. Even though the Coronavirus pandemic reduced site visits and home demand across the country, the months that followed inspired confidence with a resurgence in housing demand. The demand for residential housing in India’s top eight cities increased by more than 15% year on year. Similarly, a significant rebound is expected in 2023. The real estate industry expects the government to take specific steps to smooth the road to recovery at a time when it is dealing with post-Corona issues such as rising input costs and razor-thin margins.
Strengthened Startup ecosystem
According to the official sources, the government is expected to announce measures to strengthen the startup ecosystem in the country and address inverted duty issues in certain sectors to promote domestic manufacturing.