Union Budget 2016 evokes mixed response; Policies for farmers welcomed
Finance Minister Arun Jaitley presented 2016-17 Union Budget at the Parliament on Monday. During the 1 hour 41 minutes the minister, who was presenting the budget for the third consecutive year, dolled out a number of income tax exemptions and schemes, ensured the farmers and underprivileged were taken care of and also paid equal emphasis to development. But even though the Madhya Pradesh Chief Minister Shivraj Singh Chouhan is termed it ideal and undoubtedly in favour of farmers and poor, it has evoked mixed reactions from the common man, small and big time businessmen, finance experts and even homemakers. Here’s what they had to say when WTN spoke to a few of them…
Economist and CA with convener, VIA Tax & Corporate Law Forum Naresh Jakhotia says, “It is a very normal budget. It focuses a lot on rural economy, but there is nothing to boost the economy or something that provides required impetus for growth.”
He further explains, “More relief measures were expected on the direct and indirect tax front. The relief of Rs 5000 for individuals with income below Rs 5 lakhs or additional interest deduction of Rs 50,000 are just an eye wash. Except dispute resolution mechanism proposed and rationalisation of penal provision in Income Tax Act, nothing is there to simplify the tax laws and to provide for ease in business.”
Alokik Chandra, assistant administrative officer with LIC, zonal office too was expecting a better budget. Rating the budget as ‘2 stars’ he says, “I was expecting a raise in No-Tax slab from Rs 2.5 lakh to 3.lakh as salaries in all PSUs and banks have recently increased. If this was not possible the FM could have increased the 80cc slab from Rs 1.5 lakh to Rs 2 lakh. Rs 1.5 lakh deduction is too less for those who have purchased a house through a housing loan. However, I appreciate the move to increase deduction under health insurance premium from 15,000 to 25,000. But the increase in threshold limit in section 80gg from Rs 24,000 to Rs 60,000 doesn’t attract me.”
Web engineer with a Canadian-based firm Sourabh Agrawal says, “No change in Income Tax slab has upset me though the tax benefit for start-up is nice. The budget in reality focuses more on corporate than on salaried group. However, I do support CM Chouhan when he says ‘The FM is a visionary’. A lot of schemes have been framed keeping in mind the rural sector. He has also laid a lot of emphasis on social sectors, skill building and jobs.”
A small-time trader at the New Market, KN Agrawal was voicing his concern with respect to employees working at the market says, “The shops can now be run 24×7 just like e-commerce, but no holiday provision has been made for employees. For instance take New Market. It is closed on Mondays, but for the past few weeks it is functioning even on Mondays. This will only lead to exploitation of these poor employees.”
While speaking to Shipra C a homemaker says she was already coping with the costly daily need products and the imposition of high service tax has only made it costlier. She further adds, “Travel and cars have become much less affordable. However, I still look this budget as a foundation stone towards a better India.” Shipra, who watched the budget quite keenly says, “I was somehow happy that the target to double the income of farmers in five years is indeed a brilliant step.”
Anubhav Sinha, who is about to step in as a senior citizen category soon, is glad that he will now get an additional healthcare cover of Rs 30,000 under the new scheme. But speaking about the rebate on insurance premiums he says, “There should be a separate rebate section for insurance premiums, so as to increase awareness about insurance which would benefit the policy holder by way of lower tax.” He says he is looking forward to the approval of GST bill.
–windowtonews
