Weekend Musings: An Extraordinary Budget for Ordinary People

“We shall strive to bring ease of living to every citizen.”

True to every word, the Union Budget 2020, presented yesterday by Hon’ble Finance Minister of India, Ms. Nirmala Sitharaman aimed at boosting consumer confidence, focusing on the much-needed growth focused trinity i.e., ‘Aspirational India, Economic Development for all, and A Caring Society’.

Several announcements, multiple incentives, some misses but, at the heart of all is – the common man! Let’s try decoding it. 

Aspirational India

Paving the course for vibrant India, this aims at addressing some of the impending concerns around agriculture, education and skill development. An allocation of ?1.6 lakh crores towards agriculture will help strengthen the agriculture sector empowering our farmer friends and thus, uplifting rural India. ‘Kissan Rail’ for transport of perishable goods will further aid in the last-mile connectivity with the potential of revolutionizing the entire operations of the cold chain industry in India. Similarly, promoting the ‘Blue Economy’ not only will organize the aqua/fisheries sector but help scale it up too, adding extra income to the families. Overall, well on track to double farmer income by 2022.

By 2030, India will have the largest working-age population and as such, the attention to both education and skill development augurs well. 150 higher education institutions to start apprenticeships, a degree level online education program, bridge courses for teachers, nurses, etc. – several commendable steps have been taken to transform quality education from an aspiration to reality.

With tax holidays for startups, it is a lot easier to pursue one’s entrepreneurial dreams. To add to this are the reduction in corporate tax and the abolishment of dividend distribution tax, making India an attractive investment destination.

Healthcare and water sanitation found due focus in this budget. ? 69,000 crore allocated to the healthcare sector for investments in schemes in PM Jan Arogya Yojana, Jan Aushadhi Kendra Scheme, Indradhanush among others. ? 3.6 lakh crore allocated to water sanitation and pipeline project; ? 12,300 crore for Swachh Bharat. All this is a step in the right direction helping citizens lead better and healthy lives.

Economic Development for all

It indeed, is, encouraging to see the number of schemes announced under this section. 5 new smart cities will set a great model for the rest of the nation to follow, and the energy sector – a basic necessity today – has received the due allocation. Moreover, no growth area has been left untapped: be it the development of highways, railways, airports, agriculture, transportation infrastructure, or tourism. There is enough emphasis on SMEs and start-ups as well to accelerate job creation as well as enable them to become a stakeholder in India’s development.

The push on adding convenience to the life of a common man is evident as the budget also provided tax cuts (rejigged income tax slabs) – a favourite of perhaps, every common man. With the new income tax slab structure, individuals earning below ?15 lakhs can save ?78,000. However, with the option of both old and newer tax brackets, an individual earning below ?15 lakhs will have to do his calculations to understand which tax regime is more beneficial to him/her. For instance, if you have purchased a long term taxable policy you have an option to continue paying the premium and claiming the tax benefit on it. Also, the simplification of GST filing process will help a number of small businesses who end up spending a lot of time or paying CAs to do the same for them.

A Caring Society

Economic development, without social welfare, is the job half done. And, I think the government has done well with its focus on societal issues like women and child welfare, expanding government’s flagship health insurance scheme - Ayushman Bharat, promotion of art and culture promotion to name a few. However, what I admired the most was its focus on environmental issues. It was nice to see clean air, treatment of water being prioritized as a major action point and receive appropriate attention.

To sum it, the budget touches upon several aspects indicating a growth-oriented budget for the common man. It sets the right foundation for building a strong economy and I hope the results are just as good as the intentions. However, the development of our nation and its citizens hinges greatly on how soon these schemes manifest.