Finance Minister, Nirmala Sitharaman’s maiden Union Budget presented on July,5 2019, was just an extension of what Piyush Goel presented in February, 2019. By and large, the budget was a lacklustre and an effortless one. Of course, as always, like any Union Budget, “The Modi Budget” focuses and thrusts more on the progress and development of farmers, rural, youth and women and, then targeting provision of water, electricity and housing for all and a huge provision too for infrastructure.
I wish not to go into complete details or at the macro level, but wish to just highlight key points which affect the common man or the middle class.
No change in IT slabs. Exemption upto Rs.5 L with a rider of applicable tax above Rs.2.50L (& above Rs.3.00 L for senior citizens ) still stays but not good.
The super rich have been heavily taxed by imposition of 3-7% levy on income above Rs.2 – Rs.5 crores. I feel they would only be tempted to evade taxes and create black money.
High value cash withdrawal (over Rs.1 crore) to be taxed @1%
Positive sign that “Startups” are to be encouraged with tax incentives and no IT scrutiny. Angel Tax norms are relaxed.
New National Education Policy for higher education to be framed. Higher education norms to be reformed. A welcome measure.
What is important is how the lives of farmers, rural population and the youth will improve for better. What are the provisions for generating jobs and employment which the government is lacking in, as of today?
E.D on fuel items has been hiked and the prices of petrol, diesel to go up by Rs.2 per litre, which will have a cascading effect on all.
By and large the ‘Modi Government‘ has set a vision for the Indian economy to become a 3 trillion dollar economy in the current year. This is good for global recognition and India to be seen as a ‘ super power’ in the making.
The PM and the FM have set a clear road map for the growth of the nation, if seen at a macro level provisions and measures to be taken.
But….what I am so annoyed at and anguish about is that the “AGRICULTURAL INCOME” has still not been brought into the income tax net. Many politicians and others under the guise of being “agriculturists /farmers” have been evading Income Tax for decades- even if they earn crores! No FM has ever dared to bring the agri-income for Income tax. In fact today one can see many rich farmers leading a lavish lifestyle (most of them political leaders and so on…) and yet not paying the income tax as they say it’s “agricultural income”! So, what is the use taxing the “super rich” when “the so called agriculturists who are super rich” evade taxes?
The government must grab and attach all the properties of corrupt people and defaulters of loans and recover all the monies due.
Let the Hon’ble Finance Minister recover all those unaccounted wealth, assets and cash from the most corrupt people; she can certainly get huge revenue to wipe off the deficit in the budget. She need not even think of imposing and taxing the common man anymore. May be she can even do away with the Income tax on the salaried. It’s now or never.
All said and done, the life and standard of the common man or the Aam Aadmi, will remain the same and certainly not improve. At least take a consolation that life is still easy and certainly not worse. So, as of now forget “Achche Dhin” but wait for “Bahut Achche Dhin!”
(The views expressed by the author in the article are his/her own.)