NEW DELHI: Finance Minister Arun Jaitley on Saturday presented a please-all Budget without burdening the country’s finances already reeling under stress.
The NDA government’s first full-term Budget delayed the fiscal consolidation roadmap to give itself room to squeeze in Rs 1.25 lakh crore public investment, including Rs 70,000 crore for infrastructure like roads, ports and five ultra mega power projects (4,000 MW each).
This investment push is perceived necessary as ‘the world’s predicting that it is India’s chance to fly’ and any government expenditure will likely spur investment and usher growth.
During his 90-minute speech, Jaitley announced pro-poor policies introducing a universal social security system involving insurance schemes with premium as low as `1 per month, slashed basic corporate tax from 30 per cent to 25 per cent for the next four years to attract investments, taxed the super-rich in a move that will fetch Rs 9,000 crore additional revenue, assured removal of structural bottlenecks for doing business, proposed to do away with the distinction between FDI and foreign portfolio investments, introduced the country’s first Benami Property Transaction Bill to check black money in real estate and a comprehensive bankruptcy code to aid loan recoveries and push ‘Make-in-India’ to give impetus to manufacturing that will help evolve youth from job seekers to job creators.
The major disappointment, however, is for the salaried class, with no new Income Tax exemptions announced, barring minor relief through relaxations on health insurance policies, transport allowance and pension schemes. Moreover, the increase in service tax from 12 to 14 per cent is likely to squeeze individuals hard as discretionary expenses will shoot up. Defence budget was increased by 10.95 per cent to Rs 2.46 lakh crore.