Okay so the fiscal deficit is estimated to be at 3.9% of the GDP for the year 2015-16. That is indeed a cool stat to know about ‘THE UNION BUDGET’. But how many of us actually know the enormity or the actual monetary value of our GDP or our fiscal deficit? According to our trusted sources, the GDP of India for the year 2013 was a humongous, yet not all that humongous 1.877 trillion USD. Humongous because of its sheer size, but not all that great when we compare it with the 16.77 trillion USD of the USA.
One would think how is USA so developed even though it has only 1/3rd the population of India. Probably the greatest role in the development of a nation is played by the government and the changes it brings in. The government of India introduced the retrospective tax law, by virtue of which any company is liable to be taxed on the income they earned even in the previous years, irrespective of the fact whether they were placed in India or not. This one law itself acted as a scarecrow to all the MNCs to be set up in India. The budget this year assures that the government will refrain from taxing companies on the basis of this law. The law may also be truncated 2 years from today. To give further impetus to NaMo’s Make In India Project, the budget proposes to cut down corporate tax from 30% to 25% over a period of 4 years. Though the sense which this reform makes in the mind of an individual is not enough to neutralize the senselessness of the offense taken due to the AIB Roast, it gives enough reason to the common man to consider calling the country sane. The future looks bright.
Another bold step taken this year is the abolition of wealth tax. The income saved can be used to upgrade their standard of living. To compensate for the loss of revenue, an additional 2% will be charged on the yearly income of the super rich. The super rich are classified as those earning more than 1 crore annually. Yes, that’s for all you filthy rich suckers. Take it as you wish. Bridging the gap between the rich and the poor or a differential taxation policy for the two classes. Any which way, it is a reform well thought of.
The GDP growth is estimated at 7.5% to 8% this year. The government assures to obtain a double digit growth in the coming years, a statistic which has only been achieved by China in the past. A number of reforms seem to foster this sort of growth. The government is targeting 6.7 billion dollars from stake sales in companies in 2015-2016. This will give an increment to efficiency in management and individual investment. It also plans to enact a new law on black money, in order to realize greater income. The government is looking at greater growth also by reducing debts. It proposes to establish an autonomous bank bureau to keep check on the debts and for better management of public sector banks. Are these fake promises again? Doesn’t seem so. The government itself is passing reforms to stop unethical activities. One such reform is to merge Forward Market Committee(commodities regulator) with Securities Exchange Board of India(SEBI) for more subtle fluctuations.
Our government has something for the country who ruled over us for nearly 200 years too. In your face Britishers. Our new government doesn’t believe in divide and rule. The goods and services tax will be applicable by April 2016. This law, will make the rates of taxation standard, throughout the country to facilitate an equal spread of companies, industries and warehouses. In short to facilitate an equal spread of funds among all the states. I would say that the government is more concerned about the nation’s health rather than the health of its citizens. But aren’t both the same thing? Not really. What I mean is that there is a rise in expenditure in the defense sector by 7.5% whereas there isn’t much for the health care sector in this year’s budget. That’s really a bomb in the defense sector. Get the irony?
Apart from these, the budget promises revolutionary changes such as setting up 5 ultra-mega power projects for 4000 MW each to supply electricity to all the villages , building a number of toilets for greater hygiene and much more. Steps will be taken towards women empowerment as well. OMG! Now what will XYZ promise to do in the upcoming years? On the whole, I would say it is an apt budget. A good start towards an ambitious, yet attainable future.