The Union Budget to be presented on 1 February is important in the context of increased uncertainty in the global environment and the domestic impact of demonetisation, said Saugata Bhattacharya, Senior Vice President, Business and Economic Research, Axis Bank Ltd.
The budget needs to reassure the global as well as the domestic investors that the government is committed to bring in certainty particularly in matters of tax, he said.
The government should work to rationalise the tax regime. He also said the personal income tax should be tweaked in order to put more disposable income in the hands of the common man.
According to him, keeping the current economic environment in mind, the government should consider spending on stimulus spending rather than looking at fiscal consolidation and conservatism.
Bhattacharya is also of the view that the Centre must incentivise the states to come on board to implement GST, the biggest tax reform the country has witnessed.
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