In about a week's time Modi government 2.0's Finance Minister Nirmala Sitharaman will deliver the much anticipated Budget 2019 speech. With a lot of eyes and hopes pinned on the her and her ministry with respect to the expectations and recommendations pouring in from industry experts, Sitharaman has a might task at hand.
The Federation of Indian Chambers of Commerce and Industry (FICCI) in its 'Pre-budget Memorandum 2019-20', has outlined a number of recommendations for the upcoming budget that touch upon a number of sectors. Here are some of them:
* On the agrarian crisis - Expanding the ambit of the Direct Income Support of Rs 6,000 annually announced during the Interim budget in February in addition to reviewing the existing agricultural subsidies. Prioritising revival of agriculture by hiking investments in irrigation, reducing wastage and bolstering the agricultural supply chain. Under the Rashtriya Krishi Vikas Yojana (RKVY), farmgate storage should be developed on priority and schemes passed to enable small producers to hold on to their produce till market prices look good enough for sale.
* On Healthcare - The healthcare sector should be accorded ‘National Priority’ status. Expansion of the 250% deduction on investment made for the implementation of Electronic Health Records (EHR). For employers, a separate annual deduction of up to Rs 10,000 per employee, towards the healthcare expenses of their employees. In addition to that, FICCI recommends a re-introduction of employee medical reimbursement deduction with an annual limit enhanced to at least Rs 1,00,000 per annum. Setting up a Health Infrastructure Fund and Medical Innovation Fund to improve healthcare accessibility and enhance its availability and quality in rural India.
* On Education - A Rs 10,000 crore annual allocation on making smart device available to each student and teacher free of cost under the Sarva Siksha Abhiyan. Creation of 5 million scholarships at Rs 20,000 each for admission in higher education institutions for all students whose parental income is less than Rs 5 lakh per annum, irrespective of gender, religion, caste or any other identity. Rs 10,000 crore should be allocated over a span of 3 years for the same. A 50 per cent increase in the spending on the teacher education scheme to strengthen teacher education institutes across the country.
* On Corporate Tax - For the Indian industries to remain agile and competitive nationally and globally, the corporate tax rate for all companies should be brought down to 25 per cent irrespective of turnover along with consideration of special tax concessions for export-oriented manufacturing.
* On Income Tax for individual taxpayers - As per the recommendations, the tax rates should be as follows - 0-3 (lakh) -- Nil, 3-5 -- 5%, 5-10 -- 10%, 10-20 -- 20% and beyond 20 -- 30%. In addition to that, the 10% and 15% surcharge levied on individuals with an annual income above Rs 50 lakh and Rs. 1 crore respectively should be completely abolished.
* On bolstering the MSME (Micro, Small and Medium Enterprises) sector - Review the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme to increase the credit flow to units in the sector. With regards to start-ups, the angel tax should be abolished.
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