InvestorQ : What are the key expectations from union budget 2019-20?
Nishita Gala made post

What are the key expectations from union budget 2019-20?

Siya Saran answered.
3 years ago
Based on the discussions that the FM has had with bankers and the RBI, it looks like the special funding window for NBFCs could become a reality. Of course, this will come with conditions. The government is likely to make a distinction between liquidity and solvency and only help the former. 

For MSMEs, greater synchronization of GST methodology to address the needs of the MSME sector is likely. The mandatory payment of MSME dues by corporates within 45 days could be extended to government departments too. The budget could also insist on the IT department to issue all TDS refunds for MSMEs within 45 days. Simplifying GST compliance could be another step.

The fiscal deficit could be the grey area; however, the government will have to move towards the 3% target over the next two years. Income tax slabs are not expected to change much. However, Section 24 benefits for home loan interest could extend beyond Rs 2 lakh. Capital gains exempt infrastructure bonds could make a comeback.

Finally, the 6.1% unemployment number is not lost on the government. Nirmala Sitharaman has herself affirmed in pre-budget discussions that the budget will have very strong jobs focus. This could include a boost to the industry, exports, MSMEs, and agricultural sector.