Budget 2023-Experts, analysts expect reforms, suggest changes

Hyderabad: This will be the last full year Budget from Modi government ahead of the Lok Sabha elections in April-May 2023.

It is being presented at an uncertain time of geo-political conflict, high inflation and global recessionary trends. The economic growth of India's top 10 export destinations and top 10 sources of imports are projected to decelerate in 2023. In this scenario, calibrated steps to enhance domestic sources of growth as well as explore new opportunities for exports will be crucial for maintaining a steady economic growth trajectory.

Experts and analysts in the equity market have already started to build their positions as per the expectations from the Budget, which is likely to be presented on February 1, 2023. Some expect the government to keep its focus on infrastructure development while maintaining the path of fiscal prudence. On the other hand, there are expectations of fresh reforms and tax benefits.

Meanwhile, Delloite India has suggested some changes in the income tax structure - it feels the highest tax rate of 30 percent should be reduced to 25% and the threshold limit for the highest tax rate should be increased from ₹10 lakh to ₹20 lakh to improve the purchasing power of individuals.

For investments under Section 80C - "The current limit of ₹1,50,000 seems quite low. With the increase in cost of living and inflation, the government should look at increasing the limit. This will have two-fold benefits, viz., individual taxpayers would be willing to save more and will benefit from a lower tax outgo, thereby increasing disposable income to meet the increase in price of various commodities," Tapati Ghose, Partner, Delloite India said in a report.