Industry Leaders Set High Hopes on Nirmala Sitharaman's Eighth Budget

As Finance Minister Nirmala Sitharaman prepares to unveil her eighth budget, industry leaders express expectations for significant taxation and fiscal reforms. Key areas include infrastructure spending, tax policy predictability, and measures to increase income for lower-income groups. The aim is to foster growth, boost investor confidence, and address fiscal management challenges.

As Finance Minister Nirmala Sitharaman approaches her eighth budget announcement, industry leaders are vocalizing calls for essential reforms, focusing on taxation, fiscal policies, and market mechanics. Experts emphasize the need for financial reforms to stimulate growth and inclusivity in the economy.

Aamar Deo Singh, Senior Vice President of Research at Angel One, expresses high hopes for increased infrastructure investment and strategies to revive private spending. With the Rupee hitting unprecedented lows against the US Dollar, Singh indicates challenges in fiscal management are a focal concern, underscoring the budget's need to balance growth objectives alongside fiscal prudence.

Devarsh Vakil, Head of Prime Research at HDFC Securities, advocates for predictable tax strategies by suggesting the restoration of indexation benefits for debt funds and a reconsideration of long-term capital gains tax rates to inspire confidence in investors. Vakil also raises issues of inequitable tax burdens on shareholders during share buybacks, advocating for deductions on share acquisition costs.

Vakil outlines the budget's anticipated focal issues, including foreign direct investment, fiscal deficit management, disinvestment strategies, and energy transition. Similarly, Shripal Shah, MD and CEO of Kotak Securities, pushes for tax relief for lower-income brackets, believing reduced tax rates could enhance disposable income, lead to increased consumption, and spur growth in consumer sectors.

Shah anticipates adjustments in capital gains and Securities Transaction Tax to lure foreign investors and lift market sentiment. Amplified purchasing power, he argues, could catalyze consumer-driven growth, should the government cut tax rates for smaller taxpayers.

To boost mutual funds and long-term savings, Venkat Nageswar Chalasani, CEO of AMFI, urges the government to shore up investor trust in mutual funds by addressing tax issues and advocating for the return of indexation benefits for debt funds. Introducing a Debt-Linked Savings Scheme and aligning tax treatments can potentially enhance long-term savings.

Further simplification of TDS rules for NRIs and revisions in GST provisions for mutual funds are recommended to alleviate compliance strains and encourage wider participation. The looming budget forms a crucial juncture for the government to tackle macroeconomic challenges, heighten public investment, and execute targeted reforms to rejuvenate investor confidence and steer India's growth trajectory forward. (ANI)

(With inputs from agencies.)