Universal basic income transfers for poor may be introduced: HDFC -Governance Now

Universal basic income transfers for poor may be introduced: HDFC

Service tax rates could be increased to bring them in line with GST rates and some tweaks in corporate and personal tax regimes are expected

GN Bureau | January 30, 2017

#money transfer #HDFC #UBI #universal basic income #poverty

Universal basic income transfers for the poor are likely to be introduced only on a pilot basis but low-cost housing could get a bigger boost, said HDFC bank in its budget expectations.

The budget will be presented on February 1.

Read: Mid-19th century poverty levels in UK, US resemble those in India today: Expert

The HDFC bank report said that the theme of black money crackdown' and “digitization” could be reinforced. Service tax rates could be increased to bring them in line with GST rates and some tweaks in corporate and personal tax regimes are expected.

Assuming that the government is likely to project the effect of demonetization to be transitory, growth and tax targets for FY18 could be aggressive. Overall, fiscal deficit could at best be at 3-3.3% for FY18 (in line with the FRBM committee recommendations), and not paused at 3.5% of GDP.

It said that the 2017 budget will be presented against the challenging backdrop of an uncertain global environment, domestic economy reeling under the impact of demonetization, subdued private capex cycle and many unknowns confronting the government (such as roll out of GST). Given the context, therefore, we expect the government to provide some support to the economy however the optics of the budget are unlikely to dazzle.

The bank said it expects the budget to focus more on effective implementation and increased allocation to existing projects rather than announcing new schemes/projects. Some popular announcements mainly to help the sectors that have suffered in the demonetization process like MSMEs and rural economy are however likely.

HDFC report on budget expectations 2017

Comments

Other News

What the US–Iran peace deal means for India

After months of rising tensions, the United States and Iran have reached a memorandum of understanding called the "Islamabad Agreement." This agreement allows for the immediate reopening of the Strait of Hormuz without tolls and provides Iran with relief from sanctions, depending on its complianc

V. M. Tarkunde: A legal luminary par excellence

14 Lawyers: Portraits from The Bar By Raju Ramachandran Juggernaut, 248 pages, Rs. 799

The Cost of Obesity

The latest episode of Checks and Balances focuses on the ticking time bomb of obesity in India, and Geetanjali Minhas of Governance Now spoke with a panel of experts. You can watch the episode here: https://youtu.be/mH

US-Iran deal: Path to peace or prelude to deeper regional quagmire?

In the midst of deep mistrust, the US and Iran are reported to have reached a framework deal for ending the West Asian conflict. But whether it will result in any meaningful breakthrough or pave the way for any lasting peace in the region, is in the realm of speculation. During

Lived life, philosophy, spirituality and other enigmas

The Ashes Are Warm: Memories of a Lifetime Spent with UG Krishnamurti By Mahesh Bhatt and Sunita Pant Bansal Rupa Publications, 384 pages, Rs 495

In Varanasi, fringe expansion vs. core heritage

For centuries, the urban framework of Varanasi was defined not just by its relationship with the sacred Ganga but by its multifaceted network of urban commons. Historic kunds, seasonal talabs (ponds), and open maidans served as the city’s basic ecological infrastructure. Th