First
reaction on Union Budget 2016-17
The finance minister
has proposed the budget for financial year 2016-17 in the Lok Sabha today.
However, it is very early to provide reaction without reading in detail about
the budget. Overall it is balance budget and truly reflects to PM Modi’s vision
of India’s growth.
In this budget, it
has been clearly seen that government has totally focused towards rural economy
and boosting infrastructure like highway, roads. It is very good that 20,000
crore has been allocated for irrigation. Irrigation is very vital thing for our
county’s farmer and I myself come from farmer background can know its importance
very well. It is very good step towards improve agriculture yields which
directly benefit to farmer and our economy also.
Apart from irrigation
there is 2.7 lakh crore allocated for village which is highest ever allocation
in Indian budget history and 288% more from last year budget provision. By May
2018 all village would be electrified and all village roads connected with
states both f these are very impressive mandate in this budget.
There are insurance
scheme and LPG connection scheme for poor families. It shows the seriousness of
the government for social sector. There is also scheme to open 3000 generic
medical shop across India to provide medicine in cheap rate for common citizen.
There are many tax
reform has been introduced in this budget which would make life easier of tax
payers. There is no change in tax slab but introduce additional tax rebate of
Rs 3000 up to Rs 5 lakh income slab. HRA limit has been increased from Rs
24,000 to Rs 60,000 which is big relief for employees. There is also additional
Rs 50,000 tax exemption for first time home buyer within Rs 35 lakh loan
provided the home cost within Rs 50 lakh.
There is minor hike in service tax earlier it
was 14.5% and now it would be 15%. There is increase of tax on tobacco products
except Bidi. There has been hiked in surcharge up to 15% for the income of
above Rs 1 crore. The above Rs 10 lakh cars would be costly now.
The most important things
are that FM has been stick on fiscal deficit target and no increment in non
plan expenditure. It will increase govt’s credibility among foreign ,
institutional and domestic investors. There are many other points in budget
which we will discuss in next article.
If you have doubt about investment
product and want more information regarding investment or you need investment
services, feel free to ask us. We also conduct the seminar on investment and
financial planning. If you are interested for conducting seminar in your city,
just drop the mail.
Warm regards,
Arvind Trivedi
Certified Financial Planner
