“Unlock the secrets of FM’s Budget: Factors & Expectations for 2023!”
For the fiscal year 2023–24, which begins on April 1, Finance Minister Nirmala Sitharaman is slated to deliver her fifth consecutive Union Budget to Parliament on February 1st. This is the last complete budget before the 2024 general elections.
Supporting the ecosystem for startups:-
India’s startup industry has exploded thanks to the government’s “Startup India” programme. However, funding has subsequently been cut off, with a 33 percent year-over-year decline in 2022. With a budget of Rs 945 crore, the Startup India Seed Fund Scheme would assist 3,600 business owners. They contend that it is necessary to encourage increased investment by offering incentives and tax breaks to institutional and individual investors. The ease of foreign direct investment into India is another factor that startups should take into account.
Over 100 unicorn companies and 80,000 DPIIT-recognized startups are located in India. Government initiatives like the Fund of Funds for Startups Scheme aim to strengthen the ecosystem. Starting a business in India is extremely difficult due to rising loan rates and inflation.
Announcing fiscal incentives under the production linked incentive (PLI) system to a few more sectors is also likely to be included in the Budget, which will be unveiled on 1st February. The government may consider funding infrastructure projects recommended by the PM Gati Shakti Network Planning Group (NPG).
Tentative steps for improving GST:-
In 2022, the five-year Goods and Services Tax (GST) regime came to an end. The government still has to implement a few important parts. The establishment of the GST Appellate Tribunal this year is a top priority for the sector. Another expectation is a way to rationalise the rules for claiming input tax credit.
GST on secondments and interest thereon for past-due supplies should also be regarded as being waived, as an additional exceptional measure. Furthermore, it is crucial to define “false invoices” because authorities now utilise this word to initiate criminal proceedings.
Additionally, the GST rate structures have been addressed in a variety of settings. Few sectors have been impacted by the impending reduction of exemptions and rationalisation of the GST rates. These announcements have raised their fears, and they anticipate some respite in the Budget.
What’s on the bucket for real estate agents in the upcoming year?
The actual industry has its own set of demands for the next Union Budget. It is attempting to press for improved infrastructure status, a larger tax exemption for house loan interest payments, as well as other SOPs. This budget’s main objective must be to increase GDP by 6.5-7 percent in a year when many global economies may be experiencing a recession.
Over the past two years, the industry has demonstrated a high level of resilience and gradual recovery. In 2022, the top seven cities’ primary home sales reached a decade-high in the housing property segment. Despite rising mortgage rates, real estate costs, and adverse global conditions, this is the case.
Spending will rise by around 12.5% on average year to 44.40 trillion rupees:-
From 6.4% of the gross domestic product in the current fiscal year, the fiscal gap is anticipated to decrease to 5.9% in the next year. Nirmala Sitharaman, the finance minister, is expected to boost spending in the fiscal year beginning in April by roughly 12.5%, or 44.40 trillion rupees ($544 billion).
A Bloomberg study predicts – India’s government would spend approximately 12.5% more in the fiscal year beginning in April, totaling 44.40 trillion rupees ($544 billion). From 6.4% of the current fiscal year’s gross domestic product, the fiscal gap is anticipated to decrease to 5.9% in the upcoming fiscal year.
Bolstering Education Sector:-
The 2023 Union Budget will be closely watched because the education sector is one of the foundational pillars of the Indian economy. A considerable increase in funding for higher education has been demanded by a variety of stakeholders, including educationalists, the student body, and parents. “This budget should have a provision to provide students and instructors free internet access,” said Dr. Sanjay Goel, director of the Institute of Engineering and Technology at JK Lakshmipat University in Jaipur.
The renowned Kothari panel suggested increasing education spending to 6% of GDP in the 1960s. India has consistently spent significantly less on education throughout the years. Without a major increase in the education budget, NEP-2020 implementation would remain cosmetic. Better infrastructure, a higher faculty-to-student ratio, and training are all necessary to achieve the ambitious objective of expanding education while also improving learning results.
Online gaming platforms, NFTs, and cryptocurrency taxation in the federal budget 2023:-
The virtual digital asset market anticipates a change in the tax rate (VDA). “We anticipate increasingly generous exemptions to promote the smooth exercise of ESOPs,” stated Shivam Singla, founder and CEO of Leegality. The Indian crypto community is looking forward to the government lowering tax rates in the 2022 Budget.
Assets that use cryptocurrencies are infamously unstable, with values that can substantially alter over the course of a few days or even hours. In this industry, scams and catastrophic failures like the Terra Luna and FTX meltdowns are widespread. The government plans to launch a campaign to increase public understanding about cryptocurrencies because they are not recognised as legal tender in India.
The phrase “game of skill” has to be operationalized in order to eliminate industry-wide misunderstanding and fear-mongering. It is important to understand how online gaming platforms are taxed as well as how virtual digital assets like cryptocurrencies and NFTs are taxed.
Union budget 2023 measures to reduce unemployment and create new jobs:-
In addition, last but not the least, the development of job creation must receive major attention in the next Union Budget. The budget must include enough policies and efforts to support this transformation in order to ensure that personnel are future-ready. A sizable portion of staff might be laid off. The Union Budget for 2022-2023 should take into account additional incentives and tax changes. Policy and financial support for skill development must still be included in the budget. The budget’s main focus would be on initiatives to promote infrastructure development and rural expenditures. Any plan to develop and support the entrepreneurial culture may encourage independence and contribute significantly to the creation of jobs. Gopkumar mentioned a few industries that can experience activity: FMCG, Manufacturing, MSME, and Banking.
