QBudget: Your Pick Of The Best Budget Stories Of The Day

Your Pick Of The Best Budget Stories Of The Day

Key Areas Budget 2015 Needs to Address

A national goods and service tax (GST), bringing down inflation, incentives to manufacturers in sectors like defence, bringing down the subsidy on fertiliser and food and privatising some state owned companies are some of the key areas Budget 2015 needs to address. With the Modi government keen on bringing down the fiscal deficit to 3% of GDP, its challenge will be to squeeze in as many initiatives as it can into this year’s Budget. Read more here.

Will It Be A Populist ‘Aam Aadmi’ Budget Or A Big-Bang Budget?

Indian industry fears that instead of being a Big-Bang Budget unveiling major reforms, it may turnout to be a populist ‘aam-aadmi’ one. Sources say that a balance is likely to be struck between attracting international investors and addressing the needs of multiple domestic constituencies. It is this ‘something-for-everyone’ approach that has industry worried, especially with the Prime Minister’s Office said to be taking a conservative stand. Read more here.

Healthcare Spending Unlikely To Increase

Budget 2015 is unlikely to increase the government spending on healthcare. Sources say that the public health outlay in 2015-16 is likely to be capped at $4 billion. Expectation was high that the Budget would deliver on Modi’s promise of affordable and accessible healthcare for all. India spends just 1% of its GDP on public health, lower than what a Sierra Leone or Afghanistan do. Read more here.

India’s Tax To GDP Ratio Lower Than Many Developing Countries

The government is keen on increasing the tax base in the country and ensuring that everybody pays their taxes, Minister of State, Finance, Jayant Sinha said. Sinha said the latter was very important as India’s tax to GDP ratio was lower than many developing countries. Read more here.

Oil Cos To Benefit From Budget 2015 

Oil companies like ONGC may benefit from Budget 2015 but the benefit may be marginal for downstream companies like Indian Oil Corporation. Clarity on sharing of the subsidy burden between upstream and downstream companies is likely to benefit upstream firms,which had to burden 60% of the losses of Rs 1,39,000 crore last year. A custom duty on crude oil imports is likely to be introduced. Read more here.