Arun Jaitely, the Finance Minister of India read the long portions of the Union Budget 2018-19 in his speech on Thursday. The content spoken revealed much of the political nature of the Budget. Primarily, the appeal was to the sections that make the numbers as the hustings like the farmers, poor, young job seekers, lower, middle class and the senior citizens.
The wealthy people will have to pay more income tax which includes cess and for the goods imported. These would include TVs, high-end cars and cell phones.
The Union Budget 2018-19, which was more of politics than economics also tried showing the willingness to relax the fiscal controls. This year it is estimated that it would end with a deficit of 3.5% of GDP which is in against of the target of 3.2% and for the next year the goal has been kept as 3.3% in place of 3% as per the pre set ‘glide path’ of the government.
The budget for the poor promised “the world’s largest government-funded health care programme” under which Rs. 5 lakh will be provided for 10 crore families in a year. It could be said that Rs. 5 lakh would be provided to the 40% of the India’s population.
It was promised for the farmers that the support prices of the crops which are to be harvested post-monsoon will be minimum 50% higher from the cost of production. It will also keep in notice that MSP should be available to many more cultivators than now.
For the young job-seekers, government has decided to pay 12% of the wages into the provident fund which will be for the first three years. Women who will be entering organised labour force would also be benefitted by just paying 8.3% of their wage into the Provident fund account for the first three years. There also a cut in tax for corporate. It has now become 25% from 30% for the firms which have turnovers between Rs. 50 crore to Rs. 250 crore.
In the union budget 2018-19, senior citizens are also to be benefitted. Those above the age of 60 years can now get a tax exemption on the interest income of Rs. 50,000 which currently was Rs. 10,000. The margin for the deduction of the health insurance premia will rise from Rs. 30,000 to Rs. 50,000. If they are spending for some critical illness then they can get a deduction of Rs. 1 lakh from their income. Currently, the deduction is of Rs. 60,000 for the people aged 60 to 80.
Here is the list of the items which are to be imported and will become costlier:
• Mobile Phones
• Cars and Motorcycles
• Toilet waters and perfumes
• Manicure, Pedicure
• LCD/LED TV panels
• Imitation jewellery
• Video Games
• Cigarette, lighters and candles
• Vegetable Oils
Here is the list of items which got cheaper after Union Budget 2018-19
• Raw materials, parts used in the surgical treatment
• Raw cashew nuts
• Selected electronics and capital goods
• Solar tempered glass which is used in the manufacturing of the solar panels and modules. #KhabarLive