As the NDA 3.0 government prepares to unveil its upcoming budget, experts, including Sethurathnam Ravi, anticipate that it will follow a similar fiscal path to last year's framework. This budget is expected to clearly outline the government's strategic priorities, focusing on long-term economic growth.
One of the key areas of emphasis will be infrastructure development and an increase in capital expenditure (capex). Job creation will be a central theme, driving most policy decisions. The government is likely to boost investments in the manufacturing sector through public-private partnerships, with a focus on fostering growth, innovation, and modernization. There will also be a strong push toward clean and green energy initiatives, including electric vehicles, sustainable coal practices, waste-to-energy solutions, and other environmentally friendly projects. These initiatives are part of India’s broader vision for becoming a developed nation, commonly referred to as Vikshit Bharat.
Another sector likely to receive special attention is tourism and hospitality, a significant provider of jobs in India. Granting infrastructure status to this sector could be a game changer, making it easier to secure low-cost funding. This move will be critical as the government aims to attract 15 million international tourists and cater to 20 billion domestic travelers. Investments in infrastructure and support will be key to meeting these ambitious targets.
On the taxation front, there is growing speculation about a possible rationalization of the Goods and Services Tax (GST), particularly as collections continue to rise each quarter. A reassessment of GST rates, especially in the clean energy sector, may be on the horizon, reflecting the sector's increasing importance.
In terms of personal taxes, revisions to the new tax regime are also expected. These may include higher exemptions and new deductions related to health, pensions, and education, providing some relief to taxpayers and easing their financial burdens.
The national pension schemes are also likely to undergo changes aimed at reducing the government’s long-term financial liabilities. By incorporating employee feedback, the government aims to make the necessary adjustments while instilling confidence in the revised pension system.
In summary, the forthcoming budget is shaping up to be a crucial turning point, with a focus on infrastructure development, job creation, and providing tax relief to the middle class. These priorities will play a significant role in advancing India’s economic growth under the NDA 3.0 government.