With many expecting Finance Minister Arun Jaitley to announce big reforms in the Union Budget on February 1, there is also a strong possibility of populist measures being unveiled.
Participating in the BW Businessworld-NewX pre-budget round table discussion on Tuesday, industry experts shared their views about what they expect in the budget for key sectors such as infrastructure and railways.
Gaurav Karnik, partner, tax and regulatory services at Ernst & Young, said, "There are certainly two big expectations from the upcoming budget - more spending on infrastructure and an expected tax break. Corporate tax can come down by up to 27 per cent."
Dr Jaijit Bhattacharya, partner, strategy, economics and regulatory at KPMG, said, "For the better implementation of the crucial Goods and Services tax (GST), there is a need to increase investment in infrastructure. Spending is likely to increase as government is working on high speed trains and port connectivity."
He said that till now the government has not focused much on marine infrastructure and therefore there is a need to accelerate investment in port connectivity and shipping.
Arunendra Kumar, ex-chairman, Railway Board, said that this is the first time since 1924 that Railway Budget will be merged with the Union Budget.
"Spending in railways is expected to increase as government has ambitious plans like high-speed trains, special freight corridors. Government will also focus on improving safety norms," Kumar said.
Sutanu Guru, Deputy Editor, BW Businessworld Online, said that a big challenge for the government would be to increase private investment in the sector.
"FM will have to encourage players like JMR, Jindal brothers to invest in the sector through some schemes," Guru said. He said that the key is to improve the ease of doing business as things at the local level have not changed much.
Karnik of E&Y said that the risk factor involved for private investment in the sector is high and there is a need to do away with complex rules and regulations to encourage private players.
"Changes in tax regime for infrastructure investment trust (InvITs) and restoration of acceleration department for renewable sector are on my wish list," Karnik said.
Bhattacharya of KPMG said adopting the recommendation of Kelkar Committee report on public-private partnership, focus on asset recycling and reduction on the fickleness of government policy are on his wish list.
BW Reporters
The author is Senior Correspondent with BW Businessworld