What you can expect from Budget 2016

Finance Minister Arun Jaitley in his second full-year budget is likely to focus on steps to accelerate economic growth that seems to have stagnated in 7-7.5 per cent range amid a global slowdown.

The Finance Minister’s Budget team comprises Minister of State for Finance Jayant Sinha, Chief Economic Advisor Arvind Subramanian and NITI Aayog vice chairman Arvind Panagariya.

The official team is led by Finance Secretary Ratan Watal, DEA Secretary Shaktikanta Das, Revenue Secretary Hasmukh Adhia and Disinvestment Secretary Neeraj Gupta.

The Seventh Pay Commission has already put pressure on the government’s coffers so it is unlikely that Arun Jaitley will play Santa Claus this year. In fact, he is more likely to play Robin Hood.

The government is considering a package of tax incentives for the labour-intensive leather, gems and jewellery sectors in the forthcoming budget to provide a boost to manufacturing as well as exports.

To encourage more women to join the workforce, industry body Assocham has suggested that the government should announce a 10-fold increase in children’s education allowance up to Rs. 2,500/- per month.