The Budget 2017 will come in the shadow of demonetization and upcoming GST. It will also be presented just before elections for legislative assemblies of key 5 states.
The Budget 2017 will depart from two major traditions:
1. The date is being preponed to 1st Feb instead of last working day of Feb
2. Merger of railway budget along with general budget
Let’s see what leading retailers have to say about upcoming budget..
Sharad Venkta, CEO & MD, Toonz Retail
Post demonetization government is under pressure to improve public sentiments and maintain/increase economic growth. So it will have three key objectives:
Improvement of Sentiments
Direct Taxes: Raise the income tax exemption bar and reduce direct tax rates, this was the expectations in last budget also but this time it seems to be more certain event.
Pro Poor Measures:
The budget might see a number of welfare measures and pro-poor schemes which could see a surge in social spending expenditures. This is to build government’s image of “Gareeb Admi Ki Sarkaar”
Measures to Push economic growth
In order to balance the market sentiments Budget might see aggressive measures to push economic growth by 1) Increased spent in infra, 2) pro farming policies,3) easy and low cost credit availability, 4) reduced corporate tax, and lastly predictable policy regime for future
With Government’s current focus on moving towards cashless economy, we expect some reforms in order to Incentivize cashless transactions, and a robust sop for digitization
It is also expected that government will present more concrete timelines for GST.
All in the budget 2017 will act as a balance between demonetization and upcoming GST.
Manish Sharma, President and CEO, Panasonic India and South Asia
“The historic budget of 2017 will be a nail-biting affair. While the consumer durable industry awaits to recover from the demonetisation phenomenon, it also anticipates to be placed in the lowest - 18% slab in the upcoming GST reforms. Meanwhile the common man can expect a revision in the lower tax slab rates indicating higher tax savings. A healthy passbook in turn will further aid in a better lifestyle as consumers will spend more on consumer durables.
Moreover, imposition of a higher basic custom duty on goods will curb imports and promote local manufacturing. Further, a clarity on Duty Differential for mobile handsets will give the necessary impetus to Make-in-India under the GST regime.”
Stay tuned for more updates on Budget 2017