Budget 2019 expectations: Infrastructure sector hopes for wider govt funding, tax breaks

India’s first woman Finance Minister Nirmala Sitharaman is set to present this year’s Union Budget on July 5. This apparently would be her first major assignment ever since her appointment to finance ministry.

As usual, the government is expected to come out with fresh policies and amendments to existing schemes, impacting farmers to the middle class, entrepreneurs, professionals and corporates.

Investors have high hopes from the new government’s maiden budget against the backdrop of a strong election mandate.

Following are the pre-budget expectations of the infrastructure and power sector:

The infrastructure sector expects the government to increase expenditure on infra projects, after a populist interim budget.

Any big projects in the roads, railway, power or logistics sectors will be keenly watched.

The sector will also be looking for a consolidation of tax as well as any steps to ease the liquidity crunch that could lead to more banking and NBFC lending to infrastructure projects.

The power sector would be looking at changes in accounting standards that could allow companies to carry forward losses for 12 years rather than the current limit of 8 years, to address legacy issues.