It’s Budget time and almost everyone has high expectations of India’s finance minister. Like every year, individuals and businesses of all sizes expect tax sops and investment incentives, as the government looks at growing its revenues to fund its expenditures. Before going into taxpayer expectations, let’s examine the financial position of the Government of India.
Before the previous year’s Budget, the mood was dull, with expectations revolving around government support through regulatory measures, and not much around tax cuts. This was because it was well acknowledged that the government faced a double whammy – reduced tax income due to lockdown-induced business activity slump, as well as higher expenditure pertaining to COVID-19 vaccinations and general health. The actual Budget turned out to be in line with these expectations.