Top 5 expectations from Interim Budget 2019

Markets are eagerly waiting the budget announcement which is expected in the next two hours on Friday. This budget despite being an interim one is very important for the ruling NDA government with general election just around the corner.

Investors are especially keen to know whether political compulsions will overrule fiscal prudence. Farm related stocks were buzzing in the early morning session.

Here are the top expectations from the Budget 2019:

Universal Basic Income: With the opposition already promising a universal basic income if it comes to power, the ball is now in the court of NDA on what its views are on the same.

Tax relief: Will government rejig the current income tax slab, is the big question. There is clamour to reduced the income tax limit to Rs. 5 lakh.

Rural Focus: Farmer distress is a big issue in this elections and government would be very keen to announce a farm package that may include interest-free loan and allocations to farm infrastructure.

Job Creation: Employment figures are creating havoc, with stats suggest that unemployment is at a record high. Government may announce more recruitment for government jobs and incentives for hiring in the private and small scale sector.

New Taxes or Surcharges: To counter balance for the basic income distribution, government would have to introduce a surcharge or new tax. If so the likely candidates for this surcharge would be corporates or the ultra-rich. This would be contrary to the earlier promise of NDA government to cut corporate taxes