- mere the allocation of funds doesn’t mean growth.
- the rural sector has been given importance and funds accordingly, but proper framework to utilise these funds in a way that they lead to growth has not been given
- there are so many sectors which ahave remain untouched in this budget.

now, the changes in income tax slabs:
there is no doubt the assessee is going to get benefit as per his/her income slab;
but, this applies to the people who has income above Rs. 3,00,000.
the people having income of below 3 lakhs or 3 lakhs had not been given any benefit.
what about these people.
are they not the “Common Men”?
and look at the steps or the framework that our rspected Finance Minister has given.
1. No benefit to people having income less than or equal to Rs. 3 lakhs
2. in addition the prices of Petrol and diesel have increased. this will result in increase in prices of all the commodities due to costlier transportation
in addition the prices of Cement, Steel and iron have beeen increased, it will result in increased property prices.
3. and the increase in excise duty will reflect incraese in prices.
now, here there will be increase in prices on two steps.
1. direct increase in prices.
2. Increase in prices due to increased transportation cost and increased excise duty.
We can take the example of car manufacturing companies.
the car manufacturing companies had increased the prices in cars immidiately at the day of budget. and the reason given to us was the increase in excise duty.
and now, after sometime they will increase the prices with a given reason of increased steel rices and increased transportation cost.

NOW, THE QUESTION HERE IS THAT, WHERE IS THE COMMMON MEN IN THIS?
the tax experts say that the budget is reallt very good because the finance minister had allocated funds in some respective sectors, which may lead to growth of the country and the economy and the pther reason, in fact which everybidy is praising very much is the benefit in tax slabs. i have seen on 3 to 5 news channels that a person earnigng Rs. 8 lakhs will be getting the benefit of Rs. 50,000.
but the person earnign Rs. 8 lakhs; do he require much more tax benefits? will he be affected a lot with increased fuel prices as the person earning less than Rs. 3 lakhs will be afffeccted?
who needs relie? who needs benefits and who has been given?

the tax benefits which are given is taken off by increase prices in commodities and the remaining is or rather will going to be taken back by increased fuel perices and increased excise duty.

This was my openion.

Thanks for your invitation asking for my take on the budget. I am a salaried person with 4 dependents. My annual gross salary is around 2.4 lakhs & I am from Visakhapatnam, a Tier II city with around 2.3 million population.

I was not too shocked with the budget, because, I had no better expectations from our FM & our PM who actually is the budget’s mentor. What purpose will enhancing the Basic Tax rate by 10,000/- serve? Won’t that get neutralised by inflation in 6 months? (Too long a time, by the present trend). Widening the Tax base is a macro economic necessity, but there are better ways & a better time to that.

Was the FM actually trying to channelise the increased savings of the Higher income group (consequent to the tax reduction) into the secondary market?

The country is actually heading towards a food & water crisis & no efforts seem to be made in that direction. Apart from the defence allocation, nothing else seemed justified to me in this budget.

I am not a communist, I myself hate them. But, this budget is directionless, & is aiming only at enhancing revenues for the govt. just to maintain status quo. The disinvestment itself per se is flawed, as it resembles a drunkard, who makes no effort to improve himself, but makes merry with his habits by selling of his valuable possessions, mindless of what happens after all are sold. Where do the proceeds go? To “Social sector spending”, where contractors, who are “incidentally” the kith & kin of the politicians get to “build infrastructure” .

Easier reforms like revamping the Consumer Price iNDEX etc. weren’t thought of. Pricing of Petrol products is highly defective in India. The quickest & most convenient means of compensating the oil companies is price hike. Agreed that subsidies are misused in INdia. But, also flawed are the pricing components of the oil companies. The normal loss allowed in processing/evaporation etc. due atmospheric changes etc. allow a lot of hidden built in margins for the oil companies. All such intricacies are easily overlooked & often all the learned men lament about compensating the oil companies.

Reduction of duties on products like mobile phones is certainly unwarranted.

On the whole, it didn’t at all seem to me that a budget was presented at all.

You may find my opinion biased, based on my profile in the first para. But honestly, what has the budget got for people like me or has it opened up any new interesting investment opportunities. I can’t think of a single aspect, which would be of benefit to millions of middle class earners like me.

–
Krishna Kanth,