Mumbai, January 31: Finance Minister Arun Jaitley will unveil the most awaited budget for the fiscal year 2018-19 on Thursday. With this Budget a large number of people have high hopes with the government as it is also the last Budget by the ruling National Democratic Alliance (NDA), which is in power since last four years, with its term ending next year.Also Read - Budget 2021: Interesting Facts About Indian Budget And How It Changed Over The Years

With investors expecting increased investment in key areas such as agriculture and a slew of incentives for businesses. Also Read - Late Arun Jaitley's Son Rohan Files Nomination For DDCA President's Post

The government is expected to increase spending to ensure growth, but most investors expect it to be prudent as loosening fiscal deficit targets by too much would likely spark a sell-off in the bond market. Also Read - 'Miss my Friend a Lot,' Says PM Modi on 1st Death Anniversary of Arun Jaitley; Many Political Leaders Pay Tribute

Here is a list of expectations across markets and corporate sectors:

Taxes:

  • From 18.5 per cent, cut minimum alternative tax to 15 per cent.
  • From 30 per cent, reduce corporate tax rate to 25 per cent.
  • Enhance tax deductions, exemptions for individuals.
  • May tax long-term capital gains in investments.

Agriculture:

  • To encourage investment in the agriculture sector, the government must establish funds.
  • For crop insurance schemes, allocate more funds.
  • The government must increase spending on dams, canals and micro-irrigation systems.
  • The government must provide subsidies for building cold storage system in every district to avoid wastage of perishable goods.
  • The government must reduce fertiliser subsidies.

Banks:

  • On Non-performing assets, the government must allow a full tax deduction for provisioning.
  • Raise the threshold for the tax deduction on the internet paid on bank deposits from current Rs 10,000.
  • Allow tax relief for proceedings under the insolvecy code.
  • Reduce the tenure of tax-exempted retail term deposits to a minimum of 3 years from current 5.

Infrastructure:

  • The government must increase investment by 10-15 per cent in roads from the 2017-18 budget.
  • Increase railways investments by 10 per cent.
  • Provide support for key road projects, including Bharatmala project, which will connect western and India.
  • Provide support for key road projects, including Bharatmala project, which

Tech/IT:

  • Support digital payments infrastructure.
  • Provide greater incentives for digital transactions.
  • Reduce GST rates for telecom services to 12 per cent from 18 per cent.
  • Rationalise tariff structure, excise duties for mobile phones, tablet computers.

Autos:

  • Announce policy of scrapping commercial vehicles that do not comply with emission norms if operational for over 15 years.
  • Lower GST rates on electric vehicles, currently at 12 per cent.

Real Estate:

  • Single-window clearance for real estate projects.
  • Infrastructure status for real estate to help bring down finance, project costs, make homes more affordable.
  • More spending on affordable housing.
  • Reduce GST rate for projects under construction from current 12 per cent.
  • Cut stamp duty and reduce GST rate for home purchases.

Oil and Gas:

  • Set more beneficial GST rates for natural gas.
  • Reduce “cess” duty to 8-10 per cent from 20 per cent for oil gas exploration and production.
  • Reduce or exempt city gas distribution companies from excise duty.
  • Exempt LNG imports from paying basic customs duty.

Metals and Mining:

  • Decrease in export duty on iron ore above certain grade levels.
  • Reduction in basic customs duty on coals used for cooking purpose.
  • Accelerate minerals exploration.
  • Hike basic customs duty on aluminium scrap to protect domestic industry.

Gold:

Reduce import tax on gold to 2-4 per cent from 10 per cent to prevent smuggling.