Fiscal Year 2017-18 Union Budget To Focus On Pending Salary Hike, Infrastructure, Etc

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Fiscal

China-based brokerage firm CLSA has reportedly stated that Union Budget of the fiscal year 2017-18 will distinctively focus on pending salary hike as per the recommendation of 7th Pay Commission, social infrastructure, irrigation, rural development, capital expenditure settlement for roadways and highways and so on. The Union Budget will be outlaidon February 1 on behalf of Ministry of Finance where all the grievances will be met.

 

Earlier our team had notified you regarding the request Ministry of Road Transport, and Highway asked for an increase in the provided budget as the minimum cost was surpassing the basic need of total calculations. Also, urges from other State governments for an increase in budget and continuous pressure from central government employees for salary hike will bound Finance Minister to take such matter into consideration in the upcoming Union Budget 2017-18.

Apart from the pending matters, CLSA also reported that higher public spending will be brought into limelight hence keeping in mind the general elections to be held in 2019 along with a slowdown in economic activity post demonetisation. It is expected that the government will double its allocation, particularly for Housing for All Scheme, up to Rs. 40,000 crores. Giving major focus on the urban component, the respective scheme tries to create or build houses for everyone by 2022 as the following scheme was introduced in 2015.

Expenditures for agriculture or rural schemes put separately for the upcoming budget which was supposed to be estimated at Rs. 1 trillion will be increased by 15% to 20% more. Coming with a total budget of Rs. 2 trillion in the Union Budget 2017-18, the following meeting may include some possible announcements which may come as a major setback, disappointments and even inconvenient for few people. A certain part of the amount counting as Rs. 75,000 crores have been accumulated from the demonetization probe as well as partial relaxation in the fiscal roadmap.

As per CLSA, it stated that a change in the definition of ‘long term’ for capital gains could impact sentiment in the context of the equity market. The government is most likely to increase a tax on stock transactions with other forms of extensions in terms of short-term capital gains, meaningful hike in the recapitalisation of banks and so on. Taxation slab may vary from two to three years as compared to current one year of tenure.

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