Budget 2020-21
Union Budget 2020-21 will be presented on Feb 1st. in Parliament by FM. Everyone is waiting what measures Govt. announces when country is facing multiple problems like slow down, rising inflation, low tax collection etc. Tax or non-tax collected money has to be properly utilised to address some of the problems. Govt. should seriously consider before allocating the money for recapitalisation for banks, budgetary support to loss making PSUs, subsidies in non-essential items etc. The banks should be made completely responsible and accountable for their NPAs. Govt. gives money in the form of recapitalisation which goes in NPAs and more over they are planning to go on strike in spite of support from the Govt. It looks very surprising and only happening in our country. Banking is one of the pillar for economic growth of the country and Banks are not able to perform to their best. Cash economy is further increasing despite the Govt. efforts for digital economy. Govt. may consider no cash transactions more than Rs. 10,000/- i.e. cash transaction more than Rs. 10,000/- has to be digital. It will reduce the tax leakage in GST as well as in income tax resulting in increase in tax collection or revenue. The shortfall can easily be met and GST collection may increase. to estimated figure of Rs. 1.25 lakh crore per month. The budget should consider for promoting further digital transactions in place of cash transaction at some threshold level say Rs.10,000/-. When 120 crores Aadhar have been issued and people are having either regular accounts or jan dhan accounts then there should be no problem for digital transactions. DBT is already being implemented in digital forms. Let us reduce cash transactions. Cash transaction gives rise to parallel economy and loss of revenue whether direct or indirect tax. We are not efficiently working in divestment area also as evident from Air India. Last many years we are working and still working but not able to do it. Dividend from RBI is good amount of money but its use for recapitalisation of Banks to be considered carefully as it is not healthy trends. The budget should consider these three points carefully - support to loss making PSUs including recapitalisation of banks, limit of cash transactions and subsidies to non-essential items or areas. Good luck FM for a Good Budget..
Naveen
Naveen