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A Thread 🧵
🇮🇳 Union Budget 2025-26: Growth, Fiscal Discipline & Sectoral Boosts
1️⃣ The Union Budget 2025-26 is expected to prioritize economic growth while maintaining fiscal discipline. A key focus will be on providing income tax relief, particularly for salaried taxpayers, by potentially lowering rates or revising slabs under the new tax regime.
2️⃣ This move could increase disposable income, boost consumption, and support GDP growth. The government is likely to target a fiscal deficit of around 4.5% of GDP for FY26, continuing its fiscal consolidation roadmap.
3️⃣ With a nominal GDP growth target of ~10.3%, the budget aims to balance economic stimulus with fiscal responsibility. These measures could contribute to a 0.5-1% boost in GDP growth, driven by higher consumer spending and improved investor confidence.
4️⃣ Capital expenditure is expected to remain a priority, with significant allocations for defense, railways, and highways. Defense spending is anticipated to exceed ₹2 lakh crore, reflecting heightened national security needs.
5️⃣ Increased infrastructure spending in railways and highways could create millions of jobs and enhance connectivity, potentially adding 0.2-0.4% to GDP growth. This could also attract private investments, amplifying economic activity.
6️⃣ The budget is likely to introduce incentives for MSMEs, including easier financing and tax breaks, potentially contributing 0.3% to GDP growth. The retail sector may receive support through a National Retail Policy, boosting jobs and consumption.
7️⃣ In healthcare, GST reductions on insurance and AI-driven medical advancements could improve accessibility and efficiency, benefiting millions. The PLI scheme for semiconductors could attract investments worth ₹1-1.5 lakh crore and create high-skilled jobs.
8️⃣ Infrastructure investments may focus on renewable energy, nuclear power, and port modernization. Green hydrogen and offshore wind projects could attract ₹50,000-75,000 crore in foreign investments, positioning India as a clean energy leader.
9️⃣ Port modernization could enhance trade efficiency, increasing exports by 5-7% annually. These measures could add 0.4-0.6% to GDP growth while promoting environmental sustainability.
🔟 The budget may introduce funding for a National Employment Policy, addressing job creation and skilling. This could benefit millions of unemployed youth and boost workforce productivity.
1️⃣1️⃣ Digital transformation in customs compliance & industry tech integration is expected to reduce business costs by ₹10,000-15,000 crore annually, improving global competitiveness and attracting investments.
1️⃣2️⃣ The challenge is to balance economic growth with fiscal responsibility while ensuring social welfare and job creation. Effective implementation will determine the success of these measures.
1️⃣3️⃣ If executed well, the budget could pave the way for sustained 7-7.5% GDP growth in FY26 while maintaining fiscal stability and improving quality of life for citizens.
#UnionBudget2025 #IndiaBudget
@efile_tax Absolutely
The taxation of political parties is the most corrupt and most ignored issue that every government wishes to maintain, while every citizen prefers to overlook it.
My Budget Wishlist:
1. Reduce petrol and diesel prices by Rs 5.
2. Reduce LTCG tax to 10%.
3. Reduce STCG tax to 15%.
4. No income tax up to Rs 10 lakhs.
5. No LTCG for SIP investments up to Rs 25000 per month, if SIP is continued for minimum of 3 years.
(This is the best idea to stabilise the markets)
6. Make indexation benefit as optional, either 12.5% tax without indexation or 20% with indexation.
7. No LTCG for first Rs 5 lakhs of profit.
8. No STCG tax for first Rs 1 lakh.