As Union Finance Minister Arun Jaitley gets ready to present the Union Budget in Lok Sabha on Tuesday, Deccan Chronicle talks to city’s prominent personalities about what Namma Bengaluru can expect from it.
Dr S.R. Keshava, Professor of Economics, Bangalore University feels, “Bengaluru should get its due in this year’s Union Budget as the previous budget had nothing specific for the city. The commuter rail, announced in the last rail budget, may get the Centre’s share of funds. To improve the infrastructure in the start-up capital, an additional Rs 1,000 crore over and above the state’s general share could be allocated. The city may also get a major education institute, research laboratory or a PSU. The North Karnataka region is likely to get an AIIMS hospital and funds under the Pradhan Mantri Swasthya Suraksha Yojana (PMSSY).
Prof. Vijaykumar N.V., Faculty – Finance, Welingkar Institute of Management Development and Research thinks, “After GST, direct tax reforms may also be in focus in this year's budget. Expect big announcements in the income tax slabs and rates.
Finance Minister Arun Jaitley may raise tax breaks offered on money parked in fixed deposits, insurance premiums and mutual funds from Rs 1,50,000 to Rs 2,00,000 a year under the popular Section 80C scheme. This is to encourage people to move their extra money into the financial system, instead of stocking up cash.”
“The government may propose a bundle of tax incentives for the labour-intensive leather, gems and jewellery sectors as part of the Prime Minister Narendra Modi's signature ‘Make in India’ initiative to boost manufacturing, create jobs and revive exports. The desi version of China-style mega industrial cities across the country equipped with production units, public utilities, residential areas, schools and hospitals may likely get a big fiscal boost. It might have some good news for start-ups too. Mr Jaitley may widen the tax-free regime to five years from three years and faster procedural clearances for such companies,” he added.
