The Union Budget was presented by Arun Jaitley yesterday.
Modi called it the “Dream Budget” for everyone.
I would tend to agree with that. Especially when the Government plans to double the Farmer’s revenue in 5 years time, it is nothing short of a dream
That reminded me of those “Get Rich Quick” Schemes where, somehow your money is supposed to double up in a short period, almost miraculously without any sort of planning.
But leaving the “Dream” part aside, the budget was quite sensible.
So lets wave aside the smoke screens of tall talks and promises, and see how the budget will be affecting the common people in the coming year.
The Budget has been called the “Poor Man’s Budget” and that is correct because a lot of focus has been on the Poor people in India.
Cigarettes which is a Rich man’s poison will become costlier while the cost of Beedis, which a poor man smokes, remains the same.
I have always wondered about this. Every Government tends to increase the cost of Cigarettes and Tobacco products in every budget, because they are harmful to your health. How come they dont reduce the price of Dry Fruits or Healthy Foodstuff because they are good for health??
But that apart, the Farmers might just be able to see “Ache Din” as long as the proposed investments go as per plan. Even though the amount of land being planned to come under irrigation given the funds allocated seems to lofty, just focusing on the Agro Sector should not only benefit the Farmers but also boost the economy.
The proposed investments in Infrastructure (Roads and Transport) are most welcome, though it is 12% lower than the previous budget. We might need to go through the comparitive study of what was proposed and what actually happened in 2015-16, but still one can only be hopeful about this.
For the Middle Income group, there are not many good news.
The Tax slabs remain unchanged and the exemptions on rent and HRA are miniscule.
Further to that, there will be an additional Krishi Kalyan Cess on almost all Services. So the Service Tax will now stand at around 15%.
So flights, mobile bills, Mineral water, Packing material and most modes of transport will get costlier.
But the good news is that Footwear will get cheaper, so you can always start walking.
I must appreciate, this sly move made by the Government to improve the Health quotient of the People of India.
Jewellery is going to get costlier, but since we couldnt afford it even before, this changes nothing.
But the good news is that hiring Folk Artists is going to become cheaper, so now you can shift your focus from Firang shows to Indian Cultural shows.
Eating out will become costlier, so basically you should stay in and Make In Kitchen, instead.
Cars of all sorts are going to get expensive. So if you were planning to buy a new car this year, you might have to change your plans and buy a Hybrid Electric vehicle instead, which has got cheaper.
Your PPF and EPF savings which were previously tax free will now be taxed to a certain extent. The good news is it will be taxed only if you withdraw it. So as long as you dont want to use it, you are good. 😛
Houses which are smaller than 60 sq mt (650 sq ft approx) and cost less than Rs. 50 lacs will be cheaper….. if you can find one in the Metro, that is.
The good part of the budget is that Jaitley has shown a fiscal prudence by claiming to maintain the deficit at 3.9%.
As far as the Rich are concerned, they will have to face an additional surcharge on their excessive wealth.
But that said, they have also got an Amnesty which will put most Tax payers to shame.
Since, we might as well forget about the Black Money coming in from the Swiss bank (its much more than 100 days now), the Government has proposed that people can declare their Black Money and pay a Tax and a small penalty of it and take half of it back with them. Also, none of them will be ever prosecuted for their hoarded black money. WOW !!!
And they said the budget was Pro-Poor??? 😉
So the budget benefits both the Poor and the Rich in some way or the other, as long as the promises are fulfilled and the dreams are realized.
The Middle Class, should get back to work and hope for a good increment this year if they want to increase their savings.
Or you can buy a Lottery Ticket and count your lucky stars …. but wait… Lottery tickets have just got costlier too 😉
And if any of you plan to crib about this Budget, do remember that this is good for the Nation, it will help India, we should support the Modi Government, nothing has happened in the last 60 years, what were you doing when Indira Gandhi declared her budget in 1980s, if you dont support this budget you are not a Sacha Desh Bhakt…… So shut up 😛
Disclaimer: The Rich can be won over by giving them more Profits …. The Poor can be won over by showing them the usual Carrots …. The Middle Income group doesnt need either of it, we are silly enough to be fooled by Internet and Media newsbits 😉