The union budget for the coming fiscal (2018-19) is expected to offer tax breaks for pension funds and large corporates and the finance ministry is currently working on the quantum of tax breaks needed to incentivise pension funds and investments in new businesses.
A report in the Business Standard suggests that the proposals in the union budget for 2018-19 could see changes in direct taxes levied on the corporate sector.
"We have gone through a series of steps in the past three years to bring some major changes in the economy. It is time to offer a pause," the report quoted an official involved in the Budget exercise as saying.
The government will also reportedly focus more on building 10 million houses for the poor, under the 'Housing for All' initiative besides other infrastructure like building roads.
On the administrative side, the finance ministry, having implemented multiple reforms like GST and demonetisation, will look to simplify processes to improve ease of doing business.
The union budget 2018-19 is expected to look for consolidating the gains from the big-ticket changes of the past three years rather than introduce radical departures.
However, sources say, there could be some changes in direct tax rates for the corporate sector.