Budget 2019: What to expect?

With less than a month left for the budget the market seems to be waiting for a little something from the last budget of the first Modi government, although this budget is expected be more of promises than any new policy.

Finance Minister Arun Jaitley will present his sixth budget on February 1, although this would be an interim budget with election expected soon.  The Finance Ministry has sought details from all ministries and department regarding the amount of money needed for expenditure during April-July 2019.

Modi government is may announce a series of populist measures targeting the rural voters and urban middle class. Prime Minister Narendra Modi’s recently comments on the tax structure which has fanned some expectations for an announcement in this regards. New tax proposals, if not rate changes, can being presented in the interim budget. Some tweaking in custom duties can also be done. Even during the GST Council meeting, government had emphasized that most products can be brought under the 18 per cent tax slab. Efforts to improve ease of doing business in addition to GST and any directive in that direction will be appreciated by the small business owners and India Inc. With Modi at the helm of affairs and this being an election year, surprises are inevitable.

In the first week of 2019, the Indian benchmark index experienced volatility, the Nifty50 lost 1.2 per cent. But the Nifty50 closed higher by 55.10 points or 0.52 per cent at 10,727.40 on Friday. A steady stream of earnings and discussions over the budget are expected to keep the market buzzing, going ahead.