THE PEOPLE'S BUDGET

From the common man point of view, I would rate the budget a fairly good one. The increase in the income tax slab exemption will in a way help manage the household budget against the raising prices of the essential and necessary commodities. Agricultural loans taken by small and marginal farmers from government banks have been fully waived, which is a welcome move, but what the finance minister has failed to understand is that the most likely cause of the miseries farmers face is due to borrowing from the private money lenders. The additional burden of 60,000 crores on the Government would be taken care, thanks to no change in corporate taxes, surcharges and raise in capital gain tax. The ethics involved in the loan repayment stands forgotten and it has resulted in a scenario “YOU BORROW AND WE WAIVE”. These two aspects indicate the budget ahs been prepared keeping in mind the elections next year.

The two foundations based on which the country leap frogs are education and health care. Copious funds have been allocated for these two sectors keeping in mind the millennium goals and what needs to be done is to monitor and ensure that funds are properly used. Women and child specific schemes have been given special importance. Essential base products in fertilizer (naptha) and drug manufacture (like anti HIV) have been given total relief. Efforts of the finance minister have to be lauded for providing tax exemptions to persons who pay medical premium for their parent/parents. At least to be cut off from the tax net, I assume the numbers in old-age homes will decline!! Prices of small and hybrid cars and two wheelers are bound to come down with cut in the excise duties which may encourage a lot of buyers therefore increasing productivity and hence development.

Information technology which was considered the growth rider earlier has not been given the tax holiday but its good sign that this privilege has been extended for establishment of hospitals in lesser developed areas and three star and four star hotels in regions housing UNESCO earmarked sites for a five year period starting 2008. This may in a way generate direct and indirect employment.

While the health ministry is advertising against smoking in any form, is the finance minister inviting people indirectly towards the usage of filtered cigarettes by increasing the excise duty of unfiltered cigarettes (which has higher consumption) on par with the former??

It is difficult to satisfy the expectations of everyone. The views on the budget may vary but for the common man, it was his budget.