The budget is one of the most important events of the year, and the budget this year is even more important as this is the last budget before the next general election. Finance Minister Nirmala Sitharaman is expected to read the final draft of the budget on February 1, 2023. But how will it impact your taxation, jobs, and inflation?
Will there be higher employment opportunities?
With the layoff season still ongoing, it is going to be very difficult for the government to offer more jobs to the youth. But, with more and more Indian companies offering jobs to those that are laid off, there might still be hope.
In this budget, there is hope that the government may increase investment, which in turn will help create jobs. But in addition to that, the government may plan some additional measures based on the sector.
In the medical sector, the government may launch more new hospitals and medical institutes, which will create more jobs for the youth and help them in their education. The possible relief for start ups and other organisations will also boost employment and investment in the country.
In addition to the increase in the workforce, there is also a possibility that there will be certain skill development schemes that will be launched, which will help them get training for the required jobs.
Will your tax burden go down?
Taxes, whether direct or indirect, will directly impact the common man. If there is relief on direct taxation during this budget, you will be taking home more money for your savings. This will also affect the indirect taxes like the GST that will affect the purchase power in the hands of the common man.
The government is also expected to provide a more rationalised TDS framework, which will reduce the compliance burden for taxpayers.
With the health sector moving upward, there is a possibility that the GST charged on hospitals, medicines, and medical equipment may go down. This will help make medicine more affordable.
The FM, Nirmala Sitharaman, has in recent time indicated that India is on track towards meeting the targeted fiscal deficit of 6.4 per cent of GDP for FY 2022-2. Keeping this in mind, it is easy to expect the upcoming budget to continue its focus on fiscal consolidation through increased tax revenues.
Will it buckle price rise?
If we take a look at the official data, we will realise that retail inflation has grown by 5.7 per cent in December, which is the fourth successive month when retail inflation has moderated. The elevated inflation levels have reduced the purchasing power of the people and worsened India’s trade deficit, which has made India’s currency weaker and the RBI lose the significant forex reserves it tried to accumulate to stop the rupee’s slide.
According to news agency PTI, the government is unlikely to announce capital infusion for public sector banks (PSBs) in this Budget as their financial health has improved significantly and they are on track to earn a combined profit of Rs 1 lakh crore.
The budget will either increase the prices around you or give you more purchasing power. But what the result will be, we can only find out on February 1.
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