Union Finance Minister P Chidambaram presented his fifth Budget in Parliament on Friday, 29th february, 2008.How was this budget? Millions of words and tons of paper are being consumed in a debate whether this budget is election oriented.
Though election oriented budget usually is not fruitful, political parties still stick with that policy. This budget is also an election oriented and hence brings good news for general public - lower and middle class. But at the same time this budget has few things which really pose a doubt about its election driven nature. But this budget does not really fulfill the long term vision for india and indians. Neither the given benefits nor the plans & policies adapted is for tomorrow's india. That means, looking at my wallet I am really over the moon; but thinking about the tomorrow all colors seem to be pale.
Farmers and agriculture were hitting the top of the list in every discussion, every analysis in recent times. No wonder, this sector is the strongest of all and has the largest vote bank. Apart from the mean political interst, this sector really deserves a thoughful & responsible attention. To keep the supply line of the country intact this sector must be taken care of. This budget waived debts of marginal & small farmers fully which cost Rs. 60000 crore. This is a real good news for those who are keeping our economy up and moving. But at the same time, complete waiver is really a concern; farmers would be waived of their debt this time, but what about tomorrow; can indian government give this kind of waiver again & again? This is a real threat to tomorrow's agriculture sector itself. Probably 'Gramin bank' model would have been the better solution; rather giving prompt & temporary medication, permanent and stable solution to the problem would have been a better and more welcome idea. Can our economy take the risk posed by this step?
Another aspect of the budget make the middle class salaried people really happy is the revised tax slab and tax exemption. New tax slabs will be: 10 per cent for Rs 150,000 to Rs 300,000, 20 per cent for Rs 300,000 to Rs 500,000 and 30 per cent above Rs 500,000. Salaried middle class has thing to rejoice. As people in india are paying taxes more regularly now and number of tax payers are going high this revised tax slab can be absorbed easily. For women and senior citizens too it got better. For women, the income tax limit goes up from Rs 1.45 lakh to Rs 1.80 lakh. In case of senior women citizens, it increases from Rs 1.95 lakh to Rs 2.25 lakh. But looking at the number of tax payers compared to the total voters, can you really call this an election oriented step?
Few more aspects which would make the middle class life easier are chaper consumer goods, cheaper life saving drugs, cheaper small car etc. Food items can also availed at cheaper rate. These would give some kind of relief to the salaried people. Defence sector, Education sector all got an increased budget quite expectedly; Reasonable amount has been reserved for women and children. Rs 50 crore has been alotted for 'Tiger Saving' projects (note, tigers are not counted as voters!!). These all sounds good. But at the same time the real question is do we have the required infrastructure to avail the most of these allocation. One may argue! But the hardest fact is that most of the allotted amount would never reach its target. Concerned officials and local political demons will suck all the juice before it reaches the real patient. This is well known now; even our minister and political leaders are aware of these. So probably this 'infrastructure' deserves attention along with these allocations.
With all the 'feel good' aspects there are a few which are enough to give you some uncomfort. You may bogged down with more electric bill; you may end up paying bit more for a new phone. IT sector is also not happy with their part.
So, you can put your point for and against of the topic. But coming across these cold room discussions, the burning question is: are you happy with this budget? As one of the billions of indian how this budget is gonna change your livelihood?
Though election oriented budget usually is not fruitful, political parties still stick with that policy. This budget is also an election oriented and hence brings good news for general public - lower and middle class. But at the same time this budget has few things which really pose a doubt about its election driven nature. But this budget does not really fulfill the long term vision for india and indians. Neither the given benefits nor the plans & policies adapted is for tomorrow's india. That means, looking at my wallet I am really over the moon; but thinking about the tomorrow all colors seem to be pale.
Farmers and agriculture were hitting the top of the list in every discussion, every analysis in recent times. No wonder, this sector is the strongest of all and has the largest vote bank. Apart from the mean political interst, this sector really deserves a thoughful & responsible attention. To keep the supply line of the country intact this sector must be taken care of. This budget waived debts of marginal & small farmers fully which cost Rs. 60000 crore. This is a real good news for those who are keeping our economy up and moving. But at the same time, complete waiver is really a concern; farmers would be waived of their debt this time, but what about tomorrow; can indian government give this kind of waiver again & again? This is a real threat to tomorrow's agriculture sector itself. Probably 'Gramin bank' model would have been the better solution; rather giving prompt & temporary medication, permanent and stable solution to the problem would have been a better and more welcome idea. Can our economy take the risk posed by this step?
Another aspect of the budget make the middle class salaried people really happy is the revised tax slab and tax exemption. New tax slabs will be: 10 per cent for Rs 150,000 to Rs 300,000, 20 per cent for Rs 300,000 to Rs 500,000 and 30 per cent above Rs 500,000. Salaried middle class has thing to rejoice. As people in india are paying taxes more regularly now and number of tax payers are going high this revised tax slab can be absorbed easily. For women and senior citizens too it got better. For women, the income tax limit goes up from Rs 1.45 lakh to Rs 1.80 lakh. In case of senior women citizens, it increases from Rs 1.95 lakh to Rs 2.25 lakh. But looking at the number of tax payers compared to the total voters, can you really call this an election oriented step?
Few more aspects which would make the middle class life easier are chaper consumer goods, cheaper life saving drugs, cheaper small car etc. Food items can also availed at cheaper rate. These would give some kind of relief to the salaried people. Defence sector, Education sector all got an increased budget quite expectedly; Reasonable amount has been reserved for women and children. Rs 50 crore has been alotted for 'Tiger Saving' projects (note, tigers are not counted as voters!!). These all sounds good. But at the same time the real question is do we have the required infrastructure to avail the most of these allocation. One may argue! But the hardest fact is that most of the allotted amount would never reach its target. Concerned officials and local political demons will suck all the juice before it reaches the real patient. This is well known now; even our minister and political leaders are aware of these. So probably this 'infrastructure' deserves attention along with these allocations.
With all the 'feel good' aspects there are a few which are enough to give you some uncomfort. You may bogged down with more electric bill; you may end up paying bit more for a new phone. IT sector is also not happy with their part.
So, you can put your point for and against of the topic. But coming across these cold room discussions, the burning question is: are you happy with this budget? As one of the billions of indian how this budget is gonna change your livelihood?
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