National Budget for this year is announced

The Finance Minister has presented the annual budget. We now know how the government is going to spend its revenue, how it is going to collect its revenue and what benefits we will be getting. Taxes for the citizen who are earning 2 lakhs per year is now reduced, and those earning upto 2.5 lakhs is 10%, and those earning more than 10lakhs is 20%. But service tax has been increased from 10% to 20% and this means that we have to pay more taxes than before. GST and DTC will soon be implemented. Indirect taxes are increased. But inflation will keep rising higher than expected and we cannot control the run away inflation by any measures. The ordinary average citizen will get hurt; the inflation is high and his purchasing power is diminished; and he gets no help. Deprived persons will be affected, and will get hurt.

National deficit is increasing; that is government is going to spend more that it earns. Subsidies that the government makes will be reduced. The farming sector will feel this. There is a standing committee to review the ‘decontrol of sugar’ but other plans for the sugar industry have been made. Cane harvesting machines will be subsidised while being imported; fertilisers will be delivered without middlemen benefiting from its subsidy. Micro watering facility will be funded and marginal farmers will be encouraged to make cane cooperatives.

Who will benefit? Aviation companies can now seek help from foreign firms as they have been allowed to. This will bring relief to them. Retrospective amendments on court rulings regarding corporate sector will disincentivize foreign firms from entering Indian market.

Many details have been charted out for water projects, rural infrastructure.  R&D in all sectors will be encouraged. There ever growing need for greater revenue.Where to cut down and what to cut down? Basic needs are too many and resources limited. We will be spending more than we are acquiring. Deficit will increase further with welfare schemes, which are to be implemented. Coal price will reduce when monopoly of CIL(Coal India Limited) is would be broken,soon. That is good news, as power will become cheaper.

Soon the stock market will react. We cannot please all. Budget will affect the family budget of all, that’s for sure.