Modi Government has announced its last full-fledged Financial Budget; the budget has received comprehensive support from Banking Sector, Financial Sector, Economic Agencies, and Investors but start-ups continues to be not satisfied with the opportunities leveraged to them.
Common men—the taxpayers—were expecting a lot of gifts from financial minister Arun Jaitely but yet again all these common men received was nothing more than disappointment.
Some disappointments from the announced budget for 2018-19
No change in tax slab: The middle class was expecting the finance minister Arun Jaitely to walk the talk and upgrade the tax slab to 5 lac and above but the leader failed his loyal audience base. The no change formula in income tax slab looks like a no brainer. The government should have changed the tax and helped the middle class people survive the ever-increasing burden of events like demonetization, GST rollout and increased duties on petroleum products.
The economics has always hinted towards a mixed growth; by empowering poor and ignoring middle class, we will not succeed in turning the tables, we will only end up turning the poor into middle class and middle class in to poor.
The ever-increasing burden of EMIs on middle class along with the newly added 10% tax on income from Mutual Fund is leading the said voter class to apocalypse and eventually into poverty.
Ban on Cryptocurrencies: The regulation would have been a better way out but banning something that promises to change the world for better is rather ruthless and an example of lack of vision. Ignorance is the only smell coming out of such rash decisions. Either the oldies sitting in finance minister are too old to understand the changing world or too lazy to go out and see how it will change the world for better.
Regulating Cryptocurrencies would have helped government in keeping the frauds under check and would have helped the Indian diaspora invest in Bitcoin and grow rich like never before.
10% tax on earnings from Mutual Funds: The government decided to put a tax on earnings from mutual funds and help middle-class people go a little background, once again. Mutual Funds were looking like the best way out for the contemporary generation but with a newly imposed 10% tax, the middle-class people feel discouraged and cornered in their own country.
1% cess on education: The government, on one hand, talks about saving millions of INR by using Direct Benefit Transfer scheme and on other talks about lack of fund as the reason for increased taxes. The government here needs to take one stand and help the countrymen have a clear understanding whether the government is saving money or losing it unnecessarily.
The newly added 1% cess for education may not to huge a sum to pay but it certainly is discouraging for the middle class who got nothing out of the budget except the increased taxes.
The increased taxes on TV, Mobile Phones and Cars will also make it difficult for the common Indian people to survive and lead a happy life.
The good things from the budget
Infrastructure investment worth 6 lakh crores: the government is adamant about improving the infrastructure, which certainly is a good thing. The better the infrastructure gets, the better investment will come. With handsome infrastructure we can not only improve the quality of life but also employ a million people for building the infrastructure and then after working in it.
5G technology: The government has promised to help anyone who takes up the opportunity to build an indigenous 5G technology. A corpus fund of 500 crore have been allocated for the said opportunity. The likes of Jio can win such offerings if the start-ups do not hurry up and grab the opportunity.
WiFi and CCTV: The government promised to enable all our trains with Wi-Fi and CCTVs. Such state of the art facilities being added to our railway system will only improve the quality of life. We will be able to get our works done while travelling and also feel secure because of the 24X7 surveillance.
While the start-ups have not been benefited directly but have been leveraged with enough insight into opportunities. It is now time for start-ups to come with quality and affordable services and build the infrastructure India has always dreamed of.
The quality of budget presented by Arun Jaitely will only reflect in the long run. Empowering poor and giving them opportunities to grow, will reduce the weight on economy, then middle class may garner benefits and become the stronger class in the country, till then we need to keep working hard and pay our taxes on time.