Arun Jaitley’s Union Budget 2018: What to watch out for today

Union Finance Minister Arun Jaitley’s Budget, the last full one by the Modi government, marks the culmination of months of work, during which officials crunched numbers to make sure they all added up. Will the Budget manage to tread a fine line between the path of fiscal prudence and the usual free-spending expectations ahead of an election year?

Here’s what you need to watch out for as the Finance Minister Arun Jaitley presents Budget 2018.

1] Fiscal deficit

Higher fiscal deficit would hint at pre-election spending spree

2] Income tax
Will there be tax cuts?

3] Long-term capital gains on shares
While there’s a case for having the same tax regime for all assets, a change will rattle D St

4] Corporate tax
In 2015, govt pledged to cut corporate tax rate to 25% in 4 years, but progress has been slow

5] Reducing stress in farm sector

* Bigger allocation for food subsidy to widen MSP-based intervention
* New scheme to pay difference between MSP and market price to farmers
* Nationwide loan waiver for farmers
* Bigger allocation for farm sector to improve infrastructure

6]Disinvestment
Big-bang asset sales will provide more resources without impacting fiscal deficit

7] Universal basic income
Biggest idea to eradicate poverty mooted in Eco Survey last year

8] Subsidies
Bigger subsidies would suggest a populist push

9]More taxes to raise revenues

* Tax on dividends for everyone. Currently only those with dividend income over Rs 10 lakh are taxed
* Higher surcharge on those earning over Rs 50 lakh
* Tax on inheritance
* Increased holding period for short-term capital gains to 36 mths from 12 mths now
* Higher securities transaction tax

10] Duty on petrol and diesel
Will excise duties be cut to lower prices?

11] Capital spending and revenue deficit
Higher revenue deficit and low capital spending would indicate a pre-election rise in scheme spending