Arun Jaitley, Finance Minister announced the budget for 2018-19 and predictably, #Budget2018 started to trend even as he made his speech. Some announcements such as the long-term capital gains tax and the revision in the fiscal deficit saw the stock markets dip in reaction. The fact that there is no change in income tax slabs disappointed some, while the proposed investment in agriculture and increase in the Minimum Sale Price (MSP) pleased many.
Those of us who pay income tax will see no particular change in the coming year. There was an expectation that the exemption limit would be increased, and people were disappointed to see no change here.
The rise in MSP, proposed investment in agriculture and irrigation is seen as pro-rural and pro-poor. There is also to be significant investment in infrastructure spending for rail and roadways which is seen to be positive.
Mobile phones and imported gadgets will now cost more because the customs duty of goods imported into the country has been raised. This is a protectionist policy that many have criticized and some have welcomed as a way to give a boost to indigenously manufactured products.
It was hoped that petrol and diesel prices would be brought under GST to make fuel more affordable to the public. This has not yet happened, but the excise duty has been brought down by Rs 2/litre. However, the Tweeple pointed out that the imposition of the new road cess brings things back to square one.
With no change in the income tax slab, the imposition of capital gains and the subsequent fall in SENSEX levels meant that many middle-class people were upset.
Salaried classes are hopeful each year; usually, there is a small improvement somewhere. This year it all remains the same: the slabs are the same, the standard deduction for health insurance remains Rs 40,000/- while seniors are exempt to the tune of Rs 50,000/- and seniors also get Rs 10,000 exemption in income from fixed deposits.
One of the highlights of the budget was the announcement of the ‘world’s largest health care program’ for which 1200 crore is assigned for free essential drugs and diagnostic services. The Finance minister announced health insurance to the extent of ₹5 lakh a family per annum; covering 10 crore vulnerable families. However many critics felt that the FM did not have his numbers right.
Many good announcements were made in the #Budget2018. However, how they translate into actual action and whether the situation of farmer distress on the ground actually improves is something to be seen. The subject of job creation was mentioned repeatedly in the speech of the Finance Minister, however, the original promise of one crore new jobs a year has remained a dismally distant daydream. Will things change in the coming financial year? We shall just have to see!
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