Saturday, 5 March 2016

Re-thinking on budget for the year

Already people have started protesting because they do not want tax on EPF or Employee Provident fund. This is normal, they need to tell the government that they are trying to save money keeping some in the provident fund,, and if that is taxed also,they are unhappy.Otherwise the budget is "tax-friendly.There are no retrospective amendments, and it does give concession to industrialists. Small time start-ups and MSEs can benefit tremendously. And tax slabs are better that the lower level is now broader, giving exemptions to many middle-income groups. But total taxed population is only 3 to 5 percent, so this does not matter. There will be loss in revenue rates.
66% of the population is rural and is dependent on agriculture.Of this 66%population, only 15% has land which can be cultivated. Others are marginal farmers landless laborers, how will insurance for crops help these 85% of rural population?
Large irrigation projects will take a long time to materialize.Minor projects like deepening of wells or making ponds and wells will help. But these small projects cannot provide water to large farms. We need large farms.Only coming of industrial agriculture will solve food needs of India.When will our economists learn this?

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