Narendra Modi lead NDA government presented its 2nd annual budget in the parliament and as always it was a mix of pros and cons. Indian Budgets are so vast that I believe it cannot make everyone happy. Some people get benefits in some way and some in other way. So I am not here to tell you the full budget speech of our Finance minister MR Arun Jaitely but to just tell you in brief what budget has got for you.
- Excise duty raised to 15 percent from the earlier 10 percent on Tobacco Products. So this is a positive point for the Health of India.
- SUV’s and Luxury cars to be expensive as service charge and high capacity charge on SUV’s are levied.
- Undisclosed income can be declared at 45% including surcharge and penalties within the time period of June 1 to September 30. So this is a boost for Tax thieves but also good for the economy as black money will be controlled.
- Jewellery articles except silver will be expensive as 1 percent excise to be imposed. So this makes men unhappy as the gifts for their loved ones will be expensive.
- Krishi Kalyan Cess of 0.5 percent to be levied on all services. This is something unexpected after Swacch Bharat tax imposed last year.
- Cars will be expensive as pollution cess of 1 percent on small petrol, LPG and CNG cars; 2.5 percent cess on Diesel cars and 4 percent cess on higher end car models.
- No changes in Income tax slabs, a relief for tax paying individuals.
- 1000 crore for new EPF scheme in which the new service joining task force will benefit a lot. Government will pay 8.3% of EPF contribution for first 3 years for all new employees.
- New First home buyers got the max boost as additional exemption of Rs 50000 for housing loans upto Rs 35 Lakhs (house cost max Rs 50 Lakh).
- To provide boost to the downgrading real estate sector, Budget provided exemption of service tax for housing construction of houses less than 60 sq. m.
- 15 percent surcharge for income above Rs 1 Crore. A negative point for rich but I believe they will not mind much.
- MGNREGA got Rs 38,500 crore. Every year budget has a large contribution for MGNREGA but the real question is what change this contirbution had provided.
- Swacch Bharat Abhiyan got Rs 9,500 crores. Although so much money is allocted to this initiative, the result is yet to be seen.
- Rs 2.87 lakh crore provided to gram panchayats and municipalities – 288 % more than last year. Surely Modi government want to revive the rural areas of India.
Fitness and Health
- Health protection scheme for health cover of upto Rs 1 Lakh per family.
- Rs 30000 additional healthcare for senior citizens.
- Under PM Jan Aushadhi Yojana 300 generic store to be opened.
Entrepreneurship and Education
- Entrepreneurship among SC/ST to be promoted with a grant of Rs 500 Crore.
- Public/Private educational institutions to be made top -class for promoting world class education.
- Rs 1000 Crore for financing of higher education.
- 62 new Navodaya Vidyalayas to be opened for providing quality education to school children.
Power and Energy
- Nuclear Power Generation got Rs 3000 Crore. A clean energy move to migrate from thermal power generation to nuclear power generation.
- Deepwater gas exploration to be provided a boost. Government to also provide incentive for the same.
- Road network got a grant of Rs 27,000 crore. 100 kms/day road construction pace is currently on and this pace is to be increased in the future.
- To boost business in India, government to allow opening of shops in market for all 7 days in a week.
- 100 per cent FDI in food products marketing produced and marketed in India.
- Direct tax revenue proposals will provided loss of Rs 1060 Crore and Indirect tax revenue proposals will provided gain of Rs 20,670 Crore.
- For agriculture and farmers Rs 35984 crores are allocated.
- Irrigation will be provided to 28.5 lakh hectares of land.
This budget came as a boost for agriculture and rural people but I believe that this budget levies more burden on a middle class family. With more service tax on services and some luxury which a middle class family can opt for, this budget is totally ignoring the honest tax payer of this country. This is completely my view and everyone is entitled to have one. The above budget proposals are a brief of the total budget of the government and for the complete budget proposals have a look at the link http://indiabudget.nic.in/ub2016-17/bh/bh1.pdf