Gaon,Garib and Kisan have received much attention in new budget
Gaon,Garib and Kisan have received much attention in new budget
New Delhi,July 05(HS)The Union budget presented by finance minister Nirmala Sitharaman on Friday has laid imphasis on Gaon,Garib,Kisan and given a big push to infrastructure, housing and MSME sectors.The approach is pragmatic as it has encouraged Foreign Direct Investment which is required to stimulate growth.Higher investment and rise in rural demands will help achieve the target of becoming five trillion dollars economy.
Neither has she forgotten women nor Non-Banking Financial Companies which are passing through a difficult phase.Emphasis on electric vehicles and incentives offered to manufactures are also welcome moves.
Fiscal deficit which was proposed to be brought down to below three per cent some time back has still remained above it.It should be a cause for worry.It has been reduced to 3.3 per cent from 3.4,but it is still much on the higher side.
Some economists are also opposed to increase in custom duties on some of the items like imported books.”Encouragement to Indian units is okay but only to a limit.Quality will suffer otherwise.Let there be a fair competition”.To some others,it is nothing but protectionism which should be discouraged.
As in the interim budget,no tax has to be paid by a salaried person up to Rs five lakh income.Rates in higher slabs have also remained unchanged.To meet a major industrial demand,corporate tax has been reduced to 25 per cent.Companies with annual turnover of Rs 400 crores will benefit from this proposal.They constitute more than 99 per cent of total.So,not many have been left out.
Another major pre-budget demand was to help startups and MSMEs,the latter for creation of more jobs.The government has promised that Income Tax department will make no scrutiny of income of startups nor will it anything else to harass them.
In her 127-minute speech the finance minister also offered incentives to some other sectors.Housing,for example.Additional Rs 1.5 lakh tax exemption has been given to loanees of affordable houses.Calculated on the long term basis, it will lead to saving of Rs 7 lakhs per head.
A Peter has to be robbed to a pay a Paul. Sitharaman has also done that.A surcharge has been levied on rich individuals having annjual income above Rs two crores to meet the revenue losses.To most, excepting opposition leaders, it is a good budget.
