Indian Finance minister Arun Jaitley presented a Indian Union and Railway budget for 2017 yesterday. Let us see some of the Major Pro’s and Con’s of Union Budget 2017.
Pro’s of Indian Union Budget 2017
- Increase for Budget for MNREGA – Indian govt. led by Mr. Modi has increase the MNREGA budget with 10,000 Crore and take it to total of 48000 Crore. Which is huge. This will generate huge employment opportunity in Rural area’s .
- Reduction in Tax slab – There is reduction in tax slab. Now you will have to pay 5% Tax from income from 2.5 lakh to 5 lakh a year. Where you will get rebate of 50,000 as well. So in reality till 3 lakh you wont have to pay any tax. 🙂
- Reduction in Tax total across slab’s – Due to reduction in tax rate in initial slab from 10%to 5 %. It will save 12500 rs across slabs.
- Tax cut for MSMEs with turnover up to 50cr – In a measure to tackle the effect of Demonetization, Govt. has reduce the corporate tax for MSME ( Whose profit is below 50 crore ) from 30% to 25 % . This will give the huge boost to MSME sector to create Job’s.
- Step to Clean Political Funding – Step has been taking by Modi govt. to curb black money use in Political system, the Cash donation amt. is been reduce from 20,000 rs to 2000 from one source.
- Focus on Rail Safety – Rail safety fund with corpus of Rs 100,000 crore will be created over a period of 5 years.
- No Service Charge for IRCTC – No Service charge would be added to railway ticket booked online.
- Five-hundred stations will be made differently-abled friendly.
- Digital Push – By the end of 2017, high-speed broadband connectivity will be available in more than 1,50,000 gram panchayats.
- Action On Black Money : New law to confiscate property of economic offenders.
- Centralized defence travel system, soldiers need not stand in queue for tickets, online booking for Defance personnel’s.
- Defance Budget – Defence budget – Rs 2,74,114 crore excluding pension, & Rs 86,488 crore for capital acquisition.
- Boost For Infrastructure – Infa Budget is given rs 3.96K crores. It will definitely increase lot of Jobs opportunity in India.
- Abolition of FIBP – will have long term positive impact, Will certainly increase foreign investment.
- Agricultural Loan – A sum of Rs. 10 lakh crore is allocated as credit to farmers, with 60 days interest waiver.
- Simplification of Return Form – One page Income Tax return proposed, it will help in increasing tax net.
Con’s of Indian Union Budget 2017.
- No Relief for Honest Tax payer – Honest tax payer, who comes under the slab of 5 lakh to 10 lakh ( Mainly service class ) there is not deduction in there tax rate.
- Punishing Rich – 10 % Surcharge is been added if your income is above 50 lakh. Which is really demoralising .
- No Reduction in Corporate tax – No deduction is given for big corporate, whose income are more then 50 crore. Big corporate are real job creators and suffering a huge blow after demonetization, govt. should have given them some relief.
- No Road Map for farmers- Govt. has said it will double farmer income in coming year, but did not chalk out complete road map that how they are gonna do it.
- No Action Plan for Job creation – Biggest Issue in India is creating jobs for 45 crore youth. Govt. has failed to do so in last 2 year’s and this year also there was lack of vision in this regard.
- failed to give Positive Signal – This budget has failed to give to give any positive signal to market as whole ( Not talking about Household ) . After the doom market is facing after Note ban.
Conclusion : –
This budget was not a populist budget, it was more of a sensible, balanced, with the focus on rural economy and middle class. On a normal circumstances this would have been a great budget but i think as far as business environment after demonetization is concern this budget is not as pleasing as one would have expected .
You can also give your views on below comment box.