Budget 2016 by Arun Jaitley

Budget 2016: #VikasKaBudget & #ModiBudgetTest

The government has announced the annual budget on 29th February and gave a record of the achievements in the past financial year. Also, the FM gave a roadmap for the current year. The budget seems focused on the major issues, which every Indian thought. What I personally think is that every government presents the budget with a hope and honesty, but the implementation of that has the major role to play.

Now, coming to the major issue – what has been done in the budget in the context of statistical and monetary data. The finance minister told that the target would be for the fiscal deficit 3.5% for next financial year. The government has cleared its indication that it is not the right time for the country to cut down the fiscal deficit rate. In this scenario, they really want to uplift the people who are lying on the bottom. Furthermore, the government has surprisingly enough not reduced the corporate tax; only 1% has been reduced for the new small companies. I do not think this is going to boost the ‘make in India’ campaign. If it would have been reduced down to 25%, it is sure that there would be more people enthusiastically entering in entrepreneurship. Moreover, for those who claimed that Modi government is pro-rich, there is something they must witness! The budget clearly shows that an extra surcharge of 3% has been put for the persons earning more than one crore a year. Now, this move by the present government should force those to reconsider their allegations. It’d be an extrapolated quandary, now, if those ‘extremists’ critics of the Modi Sarkar stand with the voice of rich and take a dig! Not only this, the tax for luxury cars and SUVs have also increased by a fair amount, 10% levy on the dividends over 10 lakhs. The reason why these taxes are raised is very simple. The amount that will be raised from these taxes will be allocated for the welfare causes. Poor people of India will be getting electricity supply, at least cemented road and a gas connection. The gas connection, as the data suffices, will reach at least to almost 5 crore people. So, the inclination of the budget is clear: let us uplift poor people and make them contributor to the development of this great Indian economy. Concern for the farmers also finds its way to this budget! 0.5% cess tax will be levied on all services, especially luxuries.

Know The Budget

Public investment is increased enough to give good infrastructure and provide fresh avenue for the producers to produce and ordinary citizens to provide a better life. After the success of MUDRA (Micro Units Developing and Refinance Agency) last year, government has boosted this sector for masses. Last year, it has reached to one crore borrowers and for this financial year, the aim is to expand it further to 1.8 crore borrowers. This financing unit will help small enterprises and half of the Indian economy is dependent on this; so, the outcome from this step will be very positive. The most surprising and comforting point in the budget is that it has allocated a record amount for MNERGA since the date of its start. A record of 38,500 crores have been given to MNERGA. Although, this sector is notorious for its bad handling, but overall it’s a good scheme that follows the principle of great economist Keynes.

Moreover, again the government shows its dedication towards bringing back black money. Giving an opportunity to the black money holders that whosoever has deposited the money without the confirmation of RBI either in India or outside India, will be given a chance to disclose the amount.

End with the Budget Debate!

Now, the concluding point is can this budget help India in developing rapidly? The answer is yes, India has already an annual growth rate of 7.5%. It takes it to the top of the BRICKS nation! Major fact is that we have already excelled China in the context of growth rate. However, the budget is sharply focused on the issues of millions that is the matter of debate, seminars and workshops only. Let’s move ahead and participate our role by paying our taxes on time.