The North Block is gearing up for Finance Minister Nirmala Sitharaman's first Union Budget on July 5. According to sources, the finance ministry has identified some focus areas for the budget.
The upcoming budget is likely to focus on the idea to spur private sector investments and manufacturing. Definitely, there will be a specific inclination towards boosting the domestic investment, which is one of the top most priorities of the finance ministry, said the sources.
The government officials told CNBC-TV18 that the Centre will look at expanding budget reallocations for sectors like electronics, green technology, energy storage batteries, medical devices, electric vehicles etc. However, all this will be kept in the mind keeping that the revenue department’s collection does not get hampered. For this, the revenue department has been asked to look at the tax relaxations and review of tariffs so that there could be a calculated move towards seeing how much of a revenue outgo does it mean or how much of revenue can be foregone if more relaxations are given on these fronts.
Also, the department of economic affairs could consider raising foreign direct investment (FDI) limit in the insurance sector from the current 49 percent to 74 percent.