Budget Expectations 2017: Will PM Modi Go For A Robin Hood Budget?

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  • Published On: January 28, 2017
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Two-and-half months have passed since demonetisation was announced. While a series of opinion polls have suggested considerable support for the government's bold move yet pundits have implied that the support is linked with Modi sarkaar's ability to give something 'back to people'. With the union budget to be presented on February 1, will the government go for a pro-poor, pro-farmer budget? Will it increase the outlay for social sector schemes? Will it bring in big-bang political measures such as targeted universal basic income for the poor? The larger question remains, how does the government plan to finance these schemes? Will there be a change in the tax rate? Will the government impose inheritance tax and bring back wealth tax or will it throw away fiscal consolidation into the winds? While experts agree that one direct outcome of demonetisation could be an increase in tax base however, it is too early to say that the expanding base will be able to generate the added revenue that will be needed to finance these programmes.

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