Will the Union budget introduce short-term changes in the banking sector?
On February 1, 2017, New Delhi, the heritage of the colonial style budgetary system will most likely be done away in the upcoming budget with the BJP led government coming in with not just a new body but also a fresh set of ideas. The finance minister Arun Jaitley is likely to introduce certain fundamental changes which can transform how the government classifies between planned and non-planned expenditure.
Plans and changes that are in place
This budget will bring in more transparency regarding how money is being spent on public development. The “non-planned” expenditure sector was introduced in 1950 but came in practice only during the 1959-60 Morarji Desai government. Since then, governments have not paid much attention to it.
Demonetization and its affects
With the country currently reeling under demonetization and business facing a run-down, this budget will likely try to provide some relief to the agriculture sector and find a way to make India digital and cashless. It will also plan to double farmers’ income by 2022.
Incentives in other areas
Banks will probably be asked to reduce interest in home loans and the tax exemption might be raised from 2 lakh.