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The first full-fledged year Union Budget of the Modi government is out. Finance Minister Arun Jaitley did a fairly good job at strategically presenting a pro-growth, pro-poor, pro-youth budget that takes the tax exemption limit upto 4.4 lakhs and increased the service charge to 14%. Looks like we’ll be spending all the money we save from taxes on restaurant bills! The budget also added another 1000 crore to the unused Nirbhaya Fund without any concrete plan of allocation.
We asked Genpie readers what they thought of this most-awaited Budget. Is it praise worthy or not?
They have increased the service tax across all services. I feel that when we want a healthier India, they should not have increased the service tax on doctors, gyms, basically health and fitness related services, for they are a necessity to keep oneself fit and healthy. Specially, because of our fast-paced lifestyles that lead to stress-related health problems. This step will make these essential services expensive thereby discouraging people from using them. It affects the health and happiness quotient of the people.
I think reducing the taxes on technical services is a welcome move and will definitely benefit IT sector. Customs reduction on certain items is also good although we have to wait and see which items are on this list. Personally, I think a contribution of 8.5 lakh crores to the farmers is just another publicity gimmick chances of things changing for them look bleak. But the biggest gainers are the corporates with a reduction of 5% on corporate tax. Makes me wonder how this makes the Union Budget 2015 a pro-poor one.
With the service tax increased to 14%, it’s going to be almost impossible to do anything recreational at an affordable price. It was bad enough at 12.36%, now it’s worse! Plus the Budget doesn’t do anything for women except the Rs.1000 crore that’s been allocated for the Nirbhaya Fund. I think it’s going to be a waste with no proper plan of action.
I am extremely happy to see the government’s focus on education and standard of living in 2015. Allocating money to upgrading secondary schools and having a policy that works towards providing housing is going to ensure a better lifestyle.
There was nothing special in the Budget. There was a lot of projection and plan but nothing substantial. Plans to spend more on healthcare and low cost housing, if implemented correctly will be beneficial. For the business class corporate taxes have been lowered by 5% but telephone and electricity bills will increase because of the service tax that has gone up from 12.36% to 14% so in the end you are shelling out the same money.
The government has been talking about Make in India from the start, and the Budget proves their intent on following up with this intiative. Putting into place policies that will boost the MSME sector, improve infrastructure and ensure the growth of the manufacturing sector, the Make in India movement seems to have started off on the right foot.
As far as the GST goes, it is a welcome and much needed policy. One common market for India is something that will benefit MSME’s greatly. The set up of the Mudra bank to refinance microfinance institutions is also a step in the right direction. Considering this is the first Budget of the current government, it is heartening that they have not forgotten the MSME sector. How swiftly and efficiently they can implement the GST, however, will be the real mark of effectiveness of this government.
With the Union Budget in place and the industry appreciating and criticising the same, I feel that not enough has been done for healthcare space or for the SOPs, especially with regards to the manufacturing sector. There is no exemption or duty reduction provided on raw materials. But the corporate tax reduction would give a reason to celebrate. Post a close inspection of the said Budget, I can say that it is a pretty balanced budget but the scope for improvement stays.
I am not impressed with the Budget. It’s more like big talks and no show. There are just long term plans and no concrete road map to achieve the goals. Personally, I do not see the Acche Din coming. I was expecting much more out of it but haven’t made much of a difference since they’ve lowered the taxes in some areas and increased them in other sectors. So the aam admi is spending the same amount. Even the by EnjoyCoupon” href=”#”>stock markets haven’t shown positivity. I’ve noticed that when there’s a good Budget the share market fluctuates. The service tax increase isn’t looking good to me since going out of the house is more expensive now.
I did not find any women-specific reforms in the Budget but the fact that the government has implemented many schemes encouraging savings and medical health insurance is a big thumbs up. Though a service tax increase to 14% is going to pinch the pocket of middle class, government has proposed an increase in tax benefits through hike in transport allowance, premium in medical health insurance and national pension scheme. These are positive steps towards a healthier economy and savings culture.
The government has doubled the budget of the Nirbhaya fund to Rs. 2,000 crore, however, that doesn’t give me much hope. The fund started in 2013 and we are yet to see any change. Doubling it without a strict execution policy just spells doom. If the government feels that they can shrug off the issue of safety merely by doubling the fund, they are wrong. Because rape is not the only issue in India. We also need to provide an environment where women feel safe right from when they are born. A holistic approach which focuses on childcare, better hygiene and stricter education policies would mean that the girl child can not only feel safe but also be at par with men in our society.
