From tax exemptions to jobs, here's what Indians expect from Budget 2021

Faced with the challenge of resurrecting the economy from one of the worst contractions, people want the Centre to shift focus on job creation and agricultural, rural development in the Budget 2021. 

The new findings were revealed in an online survey conducted by YouGov in which 1,015 people participated. 

"The economic upheaval caused by the pandemic has raised people’s expectations from the government, putting a greater focus on the economy. In comparison to last year’s findings, where women's safety was the top concern of people," the organisation said in a statement.

Finance Minster Nirmala Sitharaman is set to table the Union Budget in Parliament on February 1. 

41 per cent of people were for creating new employment opportunities and development of the agricultural sector clearly hinting that the ongoing farm stir on the Delhi borders has had an impact. Meanwhile, the coronavirus pandemic has put a strong focus on health, with three in ten nearly 32 per cent respondents saying that the government should emphasize on increasing investment in healthcare this year. 

30 per cent feel there should be an increase in budgetary allocation towards the education sector. 

When it comes to taxation, which is one of the crucial announcements of the budget, two-thirds, 66per cent, want the government to raise the basic tax exemption limit for an individual to Rs 5 lakh from the current limit. Three in five participants, 60 per cent, expect the finance minister to increase deductions in medical expenses (under 80D), and just as many desire a rise in the overall tax exemptions limit under section 80C.

As the coronavirus vaccines rollout and the government conducts one of the biggest inoculation drives in the world, 57 per cent felt that the Covid-19 treatment-related expenses should be considered a separate item under tax deductions. Meanwhile, 49 per cent are hoping for a revision in the GST structure for insurance products.

"The Covid-19 pandemic has made healthcare a priority and placed health and life insurance at the forefront of investments. The data shows two in five respondents are likely to invest in insurance in 2021," YouGov said. The figure is much higher than last year’s numbers, where only 30 per cent said they would be investing their money in insurance. 

Young adults prefer fixed deposits as a medium of reliable savings and a third of urban youth are likely to invest in FDs in 2021. Meanwhile, those claiming to invest in mutual funds have reduced over the past year, from 37 per cent in 2020 to 28 per cent in 2021.