Budget 2011 my view

8/7/2019 Budget 2011 my view

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UNION BUDGET- MY ANALYSIS

Well it¶s a mere coincidence that Union Budget and Academy Awards (Oscars) wereannounced on the same day. King¶s speech swapped the show by claiming all the majorawards like ± Best Movie, Best Actor and Best Original Screenplay.

Well let¶s shift our focus from King¶s Speech ± The Movie to King of Finance ± PranabDa¶s speech.

Well there were lots of expectations from this Budget. Prakash Somani Sir has mentioned

few of them in his article - MY EXPECTATION FROM BUDGET.

Friends I am neither an economist nor a financial analyst. I am a student and will mentionwhat I have understood as a layman/common man.

(A) INFLATION

Who can forget the onion/food prices last year!!

The main reason of inflation given by him was the gap b/w wholesale &retail price. Conditions have improved this January from last year but stillit is a major issue and a matter of prime concern. Govt. is taking measuresespecially to control food prices and expects it to fall next year- I WILLSAY WIP (WORK-IN-PROGRESS)



(B) LOANS/MONETARY/AGRICULTURE

y Budget proposes to raise housing loan limit from20 lakh to25 lakh and

1% reduction in the interest rates on loan upto 15L ² GOOD MOVE y Remuneration of Anganwadi Helpers is being raised from1500 to3,000

per month &1,500 from750 ² Well I hail from a small city of Western-Up (Bijnor) and seeing the present system of Anganwaadi in my citydon·t consider it as a very wise move. Absenteeism and corruption arethe major highlights of Anganwadi and first a proper system s·d bedeveloped to check the discrepancies of the same otherwise our hardearned money is gonna waste in such schemes - THUMBS DOWN FROMME

y Capital Investment in Fertilizer it to be treated as Investment. 3%Interest subsidy to farmers - THUMBS UP

y Pension Age ( BPL cards) reduced from 65years to 60 years and for 80+age pension increased from200 pm to 500 pm - GOOD MOVE BUTSTRICT VIGILANCE IS REQUIRED IN DISTRIBUTION OF AMOUNT

DIRECT TAX/INDIRECT TAX/I-TAXRETURN/TAX SAVINGS



y Direct Tax Code will be implemented from April, 2012 and the Goodsand Services Tax Bill is to be introduced in Parliament this year ²EXPECTED

y Exemption limit for the general category of individual taxpayersenhanced from Rs. 1,60,000 to Rs. 1,80,000 giving uniform tax reliefof Rs. 2,060 - BELOW EXPECTATIONS

y A New category of V.Senior citizen created for people of 80+ age and aexemption limit of500000 will be provided to them ² NOT USEFUL FORMIDDLE/ LOWER CLASS

y Q ualifying age reduced for senior citizens from 65 years to 60 years -THUMBS UP

y No change in tax slab for Woman Assessee - DISSAPOINTED

y The standard rate of central exercise duty will be maintained at 10%. A1% central excise duty on 130 items entering the tax net and there willbe no change in C ENVAT rates - A MOVE TO STAY ON COURSE FORTRANSITION TO GST

y Tax on all services provided by hospitals with 25 or more beds withfacility of central air conditioning- BLUNDER. JUST TELL ME ANY

ICU WITHOUT AN AC FACILITY. A BIG BLOW ON LOWER MIDDLECLASS PEOPLEy Hotel accommodation in excess of ` 1,000 per day and service provided

by air conditioned restaurants that have license to serve liquor added asnew services for levying Service Tax- NECESSARY MOVE TO COVERUP THE LOSS FROM DIRECT TAXES.



y A new simplified form ¶Sugam· to be introduced to reduce the complianceburden of small tax payers- APPRECIABLE MOVE

y Tax free bonds of Rs. 30,000 Crore proposed to be issued byGovernment undertakings during 2011-12 ² EXPECTED

y Salaried employee having no other source of income is exempted fromfiling the return² TOTAL WASTE. JUST TELL ME THAT IS THEREANY SALARIED PERSON WITHOUT ANY F.D. OR A SAVING A/C?? IFNO, THEN INTEREST INCOME WILL COME UNDER INCOME FROMOTHER SOURCES AND HE WILL BE REQUIRED TO FILE THERETURN.

(D) OTHER IMPORTANT ANNOUNCEMENTS

y Cash subsidy will be provided to people below poverty line for

Kerosine,Fertilizers & L PG ² BRILLIANT MOVE BUT DEPENDS A LOTON APPLICATION

y FII investment through Mutual Funds ² CRUCIAL FOR INDIANECONOMY

y 5 Point Strategy to deal with Black Money - NO EXPECTATIONFROM THIS SYSTEM KYUNKI CHOR KHAZANE KI RAKSHA NAHINKARA KARTE

y Disvestment without Privitisation ² TIMID DECISION

y Scholarship scheme for SC/ST students studying in classes IX and X-JUST ONE QUESTION. WHY ONLY FOR SC/ST STUDENTS????

y Mobile, Laser Printer, Steel, Cement & L ED will be cheaper and Branderclothes, branded Gold, Air Travel, Medical check-up will becomecostlier- NO COMMENTS

CONCLUSION

Well half of the Union Budget focused on Infrastructure. It is agood budget for Industry. But FM has missed an opportunity. Thereason for the same is it can¶t be called as ³Aam Aadmi ka Budget´.

Friends this is totally my own write-up and took me whole day tofinalize the points. It is quite different from my usual category i.e.Inspirational. I have tried my level best to keep the matter simplebut effective. Your comments and suggestions for improvement aremost welcome.



Regards

Tarun Gupta

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Budget 2011 my view