Budget wishlist 2015

The Finance Minister, Arun Jaitley, will announce the country’s financial footprint tomorrow via the union budget. The previous budget, announced in June 2014, by the Modi govt was referred to by many critics as a UPA govt budget with ‘saffron lipstick.’ Having come to power, replacing the incumbent UPA-2government with a resounding majority in May last year, the Modi govt defended its first mid-year budget, saying it needed more time to announce the big ticket reforms.

After 9 months in office, the finance minister is now mandated to announce the big bang reforms that will add fillip to the economy and drive growth.

Strengthening economic growth, lowering inflation and minimizing current account and budget deficits are some of the superb measures taken by Modi govt, which are expected to bring the economy back on track.

Some of the expectations from the budget are:

While India’s corporate taxation is riddled with loopholes, a move needs to be adapted to increase competitiveness amongst ASEAN countries. In India, where only 3% people pay taxes, the tax base needs to be broadened. Arun Jaitley has hinted at introducing Goods and Service Tax (GST), which would be a relief from the complicated array of state taxes and other levies and add 2% to GDP growth.

India’s legal system, as per UN estimate, has 30-40 million pending cases. Additional funding for the understaffed and underfunded court system is much necessary.

A fast urbanizing India needs proper urban infrastructure of roads, ports and bridges. Reuters report opines, privatization of the financing of the infrastructure can lead to betterment.

Reuters has further hinted at privatizing Indian Railways, which, it believes will upgrade the railways system.

With inflation down at 8%, this condition needs to prevail to prevent capital flight and stabilize the rupee. The government needs to follow up from time to time.

The Economist has reported that bad debts have incurred the state banks in India almost a loss of $85 billion, which can lead to a catastrophe. The best way to avoid it is to start privatizing the banking sector.

Reuters believe, Rajasthan has adapted a bold move to liberalise its labour laws and the entire country should follow the suit.

By 2030, India’s working age population of 750 million will grow by 230 million, which will require the government to create more jobs.

These few would click start Modi government’s reformation process on a fantastic mode.

(Image: Reuters)