Finance Minister Nirmala Sitharaman presented the Budget 2021-22 today. Although people and experts both had high hopes from the budget but it certainly dashed their high hopes.
Before going into the nitty-gritty and critical aspect of the budget, it is significant to discuss what does people of this country will gain from the budget presented by the finance minister of India.
No changes were made by the finance minister in the income tax slabs. The fiscal deficit for the year 2021 pegged at 9.5% of GDP with a target of 6.8% of GDP as fiscal deficit in the year 2022.
According to reports, the government of India has left
direct taxes unchanged. The government also exempted senior citizens with only
pension, over the age of 75 years from filing Income Tax Returns (ITR). According to definition provided in the annual report of Ministry of Social Justice and Empowerment, a senior citizen is one who has attained the age or above 60 years. Certainly, the government has charted their own definition of senior citizens.
The finance minister also announced Agri Infrastructure and Development Cess on items such as fuel and liquor however, Sitharaman said there will be no direct burden on the consumers. With this step, the government will impose Rs 2.5 per liter on Petrol, Agri infrastructure cess.
Commonly used items gets costlier like mobiles, charges, refrigerators, air conditioners. Isn't it a big jolt to government's digital India program? On the one hand government wants to 'Make in India' and rise its 'Digital India' program but it is not possible without digital or electronic devices.
LED lights will also get more costlier while the government asks people to save energy. There is a whole list of imported items that will get costlier ranging from raw silk and cotton, solar inverters and lanterns, signaling equipments, ink cartridges and ink spray nozzle among others.
While giving some relief to the depositors, FM said during bank fails or stoppage on bank withdrawals, the depositors will get immediate access to their deposit amounts upto insurance amount of Rs 5 lakh.
As discussed above, when India raises import tariffs on solar and mobile equipments, it will affect the trade policies rather than helping the home made items or native manufacturers. According to reports, no major announcement was made to resolve the impasse between government and people due to the contentious farm laws.
Common man doesn't seem to gain much from the budget
because the budget seeks to promote ideas and policies rather than ensuring
actual problems of actual stakeholders and common man.