The Narendra Modi government is gearing up to present the interim budget before heading into the 2019 Lok Sabha elections. With just few days before its announcement on 1st February, 2019, companies in the retail segment have pinned high hopes on this budget, which is a precursor to the full budget that the succeeding government will finalize.
Ramesh Kapoor, CFO of NUMERO UNO is one amongst those who have optimistic expectations from the interim budget. After all, many announcements within it are likely to be done keeping in mind the forthcoming elections.
Kapoor lists out his anticipations from the interim budget and hopes that these are met:
PROMOTING GROWTH: Control over the fiscal deficit is desired along with a well-defined road map to increase the country’s growth rate to 8%. This can be done by outlining tangible ways to create jobs and grow the economy. Relief package for farmers and the farming community, too, will boost consumption.
IMPROVING SPENDING CAPACITY: A cut in individual income tax rate or increase of the taxable limit will help increase the disposable income of individuals. This will boost their consumption and the domestic economy.
At the same time, one hopes to see an ease in liquidity norms and better availability of liquidity in the market. This, too, will boost domestic consumption and make liquidity available to various sectors.
RATIONALIZATION OF GST: A clearer roadmap for single rate GST across the nation is needed. It is unlikely that any rate reductions would be announced again, as this was done recently. .
On the other hand, rationalization of rates for many industries such as textile, apparel, cement is needed. One also hopes that petroleum products are brought within the ambit of the GST network.