5. Banking sector reforms should be announced which may include recapitalization as well as disinvestments. This is one issue that has got the RBI stand up in attention.
The move by the central bank directing lenders to clean bad loans off their balance sheets has taken the markets by storm. While the government has already earmarked Rs 70,000 crore to be infused into state-run banks over a four-year period, their requirements stand at Rs 1.8 lakh crore.
Pumping in more money into these banks has been a matter of debate; especially given its rising Non Performing Assets.
However, banks are clearly stressed for funds and have virtually ceased lending activity leading to stalled projects and implementation woes.
This, in turn is starving the economy of much-needed funds to spur growth.
6. A large number of executives feels that the FM should take initiatives to boost private investment.
This could happen by increasing tax slabs for salaried people, increase in limit to investments in PPF, increase in the exemption limit of Rs 10,000 for interest from banks.
This will be one demand that all individuals will be looking forward to. Not only does this provide individuals with more resources, it also gives a positive spin to the economic sentiment, which clearly does not look favourable for spending.
7. A key demand from the real estate industry is to allow home buyers tax benefits from the time they start paying interest on housing loans, instead of post-possession of the property.
This will ease buyers monetary burden considerably and make increase the velocity of home loan disbursements.
The real estate sector will be watching this budget very closely. The introduction of the Real Estate Regulation Bill is expected soon and this will bring a sea of change in this sector.
Stalled or delayed projects has deterred buyers from plunging into the market. Banks too are not keen to lend any longer.
A boost to individuals in this budget could enable buying and will bring in much cheer to this stressed sector.
8. Start-ups should be defined for the purposes of tax benefits. Much of this demand has already been covered by the government's notification of uniform norms for start-ups as a follow up to the launch of the government's campaign to spur entrepreneurship among Indians.
More clarity in the Budget on this emerging area will usher in transparency and provide a clear roadmap for budding entrepreneurs.
9. Corporate tax should be reduced by 1 per cent, say executives. The government in its maiden Budget had promised to bring down corporate taxes from 30 to 25 per cent over a period of four years. However, there has been no action on this front since the announcement.
There are expectations that corporate tax may see a cut in this year's budget. Indications are that it may start from Special Economic Zones.
10. Government should spend more on infrastructure, roads, railways, defence, health care and education etc. A robust infrastructure will help boost the overall economy.
Besides, it will be a measure that people spanning across the rural and urban divide of India expect from the government.
The current state of abovementioned areas is no secret and investing in improving basic amenities for the people will be a welcome move.
