When there is a change in the government the right of way also changes. Though, the central budget set nearly after general elections more likely to be at on statements and less on grounds. This is due to the fact that there was very less time between the election fallouts and the budget day to bring out any major change in the current picture.
When the governmental order changed in this general election, the new actually did not have much time to become familiar with their respective ministries before they had started dealing with the finance ministry on the new budget.
The clear result is the prior interim budget inclines to be the supervisory paper and the major changes in the new budget will mainly be superficial in nature.
Let’s have a look at the few points that is expected from the new Finance Minister Shri Arun Jaitley on the big day that is 10 July 2014:
ü Theirs is a possibility of declaration of a different and compact role for the Planning Commission. Going forward the finance ministry is expected to be the nodal body to deal with state plan outlay. There’s a possibility to scrap the twelfth plan and shifting the prime focus to annual plans. The difference between the plan and non-plan expenses could be given up and income and money spending being the only division.
ü It is expected to assign higher sharing to education, skill building, wellbeing, and municipal schemes. The whole of Modi’s pet schemes like the lavatories, country side housing, infrastructures and special industrial zones will be mentioned in terms of intent and there will also be token sharing out. The government will share the money and real details later on.
ü We also expect border line changes in the least tax-free bracket (Rs. two lakh now) to show higher inflation.
ü There would also be the declaration of a new Direct Taxes Code with effect from 1 April 2015. The details are expected to come later.
ü There are very few changes expected to indirect taxes that includes both excise and customs.