Environmental, Social, and Governance (ESG): Key expectations from the Union Budget
- India has made a commitment at COP26 on the following:
- To raise the non-fossil fuel-based energy capacity of the country to 500 GW by 2030
- To meet 50% of the country’s energy requirements using renewable energy sources by 2030
- To reduce the total projected carbon emission by one billion tonnes between now and 2030
Sambitosh Mohapatra
Partner and Leader- ESG
PwC India
Oil & Gas sector expectations
- The petroleum industry is seeking a remedy for the break in getting GST credits post project construction on sale of products. The Government of India has renewed the pitch to the international investors for participating in the Indian exploration and production (E&P) sector.
Deepak Mahurkar
Partner and Leader Oil & Gas
PwC India
Key expectations in industrial development
This budget could usher in economic development in the country’s hilly states, that hold immense potential across sectors, by providing a specific thrust on resource-based industries, food processing and tourism. It could enable economic development in such states by supporting them with a mix of investments to develop quality connectivity and industrial infrastructure.
Mohammad Athar (Saif)
Partner and Leader,
Industrial Development,
PwC India
FM armed with strong fiscal ammunition to spur growth
An analysis of the monthly revenue trends of the Central Government for FY22 up to the month of November and a comparison with the average revenue up to November from FY16 to FY20 (skipping FY21 due to severe COVID-related impact) reveals that the revenue receipts of the Union Government are likely to exceed budget estimates by INR 6.4 trillion.
Ranen Banerjee
Partner and Leader,
Economic Advisory Services,
PwC India
Boost in Rural demand and promoting ‘Make in India’
Budget 2018 holds certain key themes for the automotive industry. As expected, there is a significant push for rejuvenating the rural economy and improving economic development through better infrastructure connectivity. The government has also provided a clear signal of encouragement to Make in India by increasing the customs duty rates on completely knocked down (CKD) and certain component imports.
Kavan Mukhtyar
Partner and Leader,
Automotive
Media and sports kept out of the spotlight in Budget 2018
With the entertainment and media industry stepping up to support the government’s Digital India initiative, the industry expected policymakers to take measures to rationalise their transition to the digital ecosystem. However, with agriculture, healthcare, education and infrastructure taking centre stage in Budget 2018, other sectors receded into the background.
Frank D’Souza
Partner and Leader,
Entertainment and Media
Budget 2018 decoded: Impact on transactions
The Finance Minister Arun Jaitley delivered Budget 2018 (his fifth) keeping in mind inclusive growth and taking a big leap forward with the ease of doing business agenda. Key direct tax changes (applicable w.e.f. 1 April 2018) impacting the corporate sector are:
- Rate of income tax: It has been reduced to 25% (from 30%) for companies having a turnover up to 2.5 billion INR (~38.5 million USD) in FY 16–17. This will immensely benefit the MSME segment, leaving enterprises with higher investible surpluses, which can be channelised into transactions and growth, as well as create employment opportunities.
Hemal Uchat,
Partner,
M&A Tax
The common man’s expectations from Budget 2018
The salaried class has had high expectations from the annual Budget for the past several years. But somehow the people never got what they wished for. In fact, those falling in the income group of 50 lakhs to 1 crore were adversely impacted last year with the levy of a 10% surcharge. This year, expectations are again building up and there is greater hope on account of several reasons. The first one is that this may be the last full-fledged Budget of this government and populist proposals may hence find a place in the Budget. Secondly, several reforms have recently been undertaken, such as GST and incentives for digitised transactions, which will increase activity in the formal economy and likely push up tax collections in the long run. Further, demonetisation received great support from the public at large. Considering these factors, this may be an opportune time for the government to elevate the public mood by granting them tax relief.
Kuldip Kumar
Partner and Leader,
Personal Tax, PwC India
