The Union Budget 2022 may include a higher standard deduction for salaried taxpayers and tax incentives related to affordable housing, according to reports.
Emkay Global Financial Services stated in a report that on the revenue front, gross tax/GDP ratio is expected to rise to 10.7 per cent amid healthy tax buoyancy across segments. Though we do not see any major changes in taxes, we do not rule out minor tinkering in the form of higher standard deduction for salaried taxpayers."
The report stated that the spending focus will likely be on welfare, rural, health and MSMEs and will watch for financial sector initiatives (resolutions, higher FPI limits to facilitate divestment in select PSBs on sale, etc.).
"Asset-sale execution will become the key balancing aspect, especially with a healthy NMP pipeline. We pencil in a modest divestment of Rs 800 billion, and do not account for any major 5G spectrum windfall, the report said.
The report further said that the Budget faces acute policy trade-offs between nurturing a nascent growth recovery and diminishing fiscal space with challenging debt dynamics.
(With inputs from IANS)
