Every year, the union budget comes with a few surprises and a few predictable. This is usually based on the performance of government in the previous year. Let’s see how different economic areas will play along with this year’s budget.
Union Budget 2018-19: Impact on Different Sectors
This year’s union budget tries to respond with optimism after listening to the farmers’ protests that took place across the whole country.
- The minimum price for crops offered to farmers is going to be raised.
- More investments will come in the agricultural markets.
- More money will be pumped into rural sector, particularly in irrigation projects and aquaculture projects
- State governments are directed to spend more solar power produced by farmers with the help of solar-powered pumps. Many firms in the agriculture sector can benefit from this.
Government is going to levy more for its health and education plans. This cess has been moved from 3 percent to 4 percent. As it applies to all goods and services, this will make almost everything a little more expensive.
Your long-term capital gains from investing in stock markets and equity mutual funds will now be taxed. Arun Jaitley has proposed a new tax of 10 percent. This may shake investors’ confidence in companies offering financial services like mutual funds, insurance, etc.
To promote manufacturing in India, the union budget has increased Customs Duty on mobile phones from 15 percent to 20 percent. This might diminish returns for foreign tech giants like Apple and Samsung which seek to reap profits from a developing market like India.
Hospitals can benefit from the government’s National Health Protection Scheme which aims to insure 500 million people of care for up to 5 lakh rupees a year.
Arun Jaitley has promised a record infrastructure spending on roads and railways. Also, the government spending on regional airport construction is going to increase. This means that many construction and engineering companies can make huge profits in the future.
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