Immediately after the Union Budget was presented, Prime Minister Narendra Modi gave a televised address in which he expressed his deep satisfaction. Describing it as an ‘uttam’ Budget, he said, “The finance minister has devoted to strengthening the hands of the poor.” He added that the Budget is a key link between the work done by the government over the last two-and-a-half years and steps that Centre will be taking in the future as part of its vision to take the country on the path of development.
How will the Budget help push growth?
This is a Budget for the future — for farmers, underprivileged, transparency, urban rejuvenation, rural development, enterprise. It will speed up the development of the country, create new employment opportunities, double farmers’ income and it will also bring a big change in the financial condition of the villages. The Budget attempts to raise middle class incomes without any increase in fiscal deficit.
What’s in it for farmers and women?
This Budget focuses on farmers, agriculture, villages, dalits, oppressed and suppressed. From railway modernisation to economic reforms, from education to health, from entrepreneurship to industry, the aim at fulfilling the dreams of all is clearly visible in the Budget. A record allocation has been made for MNREGA as well as women’s welfare... Special emphasis has been given to women empowerment.
How will it help curb black money?
The Budget provides for a comprehensive package of digital economy which will reduce tax evasion and help control black money... The commitment to eliminate corruption and black money is reflected in the Budget.
What’s the benefit of the cap on political funding?
It’s an important step to clean politics of corruption.
Will merging the Rail and General Budget help?
The merger of the Railway Budget with the General Budget will give an impetus to the growth of the transport sector.
How will it help people with lower income?
The reduction of tax for people with lower incomes is a “courageous step” that will provide relief to the middle class.
Will it help the housing sector?
The housing sector stands to gain immensely from the Budget.
How will the MSME sector benefit?
It will help small businesses to become competitive in the global market.
Hours later, Arun Jaitley addressed a post-Budget press conference and spoke about the implications the Union Budget has on different sectors and how he would like to make citizens more tax compliant.
What are the tax sops?
Softening the demonetisation blow, tax has been halved to 5 per cent on income up to `5 lakh, but a new surcharge of 10 per cent on income between `50 lakh and `1 crore has been included, while stepping up allocations for infrastructure, rural, agriculture and social sectors.
What were the effects of demonetisation?
The collection in Central excise duty, related to manufacturing, surged over 31 per cent in December 2016 alone, compared to December 2015 figures. The tax collection has gone up in nine months starting from April to December. Direct and indirect taxes have gone up. Compared to November 2016, indirect tax growth was 12.8 per cent in December 2016.
Will there be new schemes?
Our aim in the Budget was to stick to the direction where we are moving. The intention was not to increase schemes, but to ensure proper implementation of the existing schemes. The major allocation in the Budget was mostly aimed at checking poverty and infrastructure development. Another objective of the government is spending more on successful sectors.
Will taxpayers be benefited?
The government is committed to flushing out black money and ending corruption. Hence, we are taking steps to make people tax compliant. Honest taxpayers suffer the most because of tax evasion by the corrupt. Through the Budget, we wanted honest tax payers to benefit. When too many people evade taxes the burden of their share falls on those who are honest and compliant. We are now tightening our noose around tax evaders and that money is coming to the exchequer, so we are trying to reward the honest taxpayers.
What impact will the poll funding reforms have?
The scheme to cleanse political funding was announced to make the economy cleaner and transparent at large. If tax returns are filed, both the donor and the donee will get exemption on tax in political donations. Developed countries have digital payment structure for donation to political parties. Electoral bonds will be redeemable only in notified accounts of political parties.