Budget 2017: 5 Things You Can Expect From a Post-Notebandi Budget

Universal Basic Income, tax relief for MSMEs and a new financial year for India?

Budget 2017 is almost here; it will be the first since demonetisation. (Photo: The Quint) 

Budget 2017 is almost here. This is the first budget since demonetisation was announced and also comes before crucial Assembly elections in Uttar Pradesh, Goa, Uttarakhand, Manipur and Punjab.

What are the five things one should expect from Arun Jaitley in this budget?

Video Editor: Prashant Bhardwaj
Camera Person: Abhilash Mallick

1. Universal Basic Income Scheme

Demonetisation's big promise was that black money will be brought back and benefits given to the people. So, it is likely that Universal Basic Income scheme will be introduced and cash in hand will be given to unemployed and below-poverty-line. But if this is done without reducing the subsidies, the question that begs our attention: Paisa kahaan se aayega, boss?

2. Tax Relief for MSMEs

Micro small and medium industries or MSME will be looking for some tax relief. So that the middle class voter who is angry at demonetisation may have something to cheer. Tax relief means a decline in government's revenue, which brings us again to the same question: where is the money going to come from?

3. A Big-Bang Disinvestment in the Offing?

Which brings us to point number three. Is there a big-bang disinvestment in the offing? Or some googly to raise additional resources?

4. Likely Introduction of Long Term Capital Gains Tax

Dalal Street will be worried about likely introduction of long term capital gains tax, which currently is zero. At this point, it's unclear whether the definition of long term is changed, or long term benefits are taxed.

5. Is India’s Financial Year Going to Start From January?

And finally, India's financial year starts from April. But the government is thinking about starting the financial year from January. If that is the case, expect some confusion about numbers. Which set of numbers to be compared with what? We may not get a clear picture of the impact of demonetisation.

Hold your breath, we may have more budgets between now and the 2019 general elections.