Article: Are we moving towards developed India?

Author: TK Arun
Let’s come straight to the point. From a macro-economic perspective, the budget is good. The fiscal deficit has been kept at 4.9% of GDP. The government has also allocated a large amount for capital expenditure and has also indicated that it will reduce the primary deficit. That is, the government will cut down on the expenditure it makes above its income. The primary deficit does not include the interest on the loan.

The tax front
Another good thing for the government is that the ratio of tax and GDP is increasing. GST has reduced tax evasion. Also, corporate and income tax collection has also increased. Still, there is scope for further improvement in this matter.

Political budget
After the budget, Prime Minister Narendra Modi appealed to the opposition to forget politics and cooperate in the development of the country till the next Lok Sabha elections, but the truth is that the budget is also political. Therefore, it would be meaningless to expect silence from the opposition.

Shock to the rich
In the budget, an additional relief of Rs 17,500 has been given to the taxpayers of low income group. Some such measures have also been announced in it, which will make the job seekers happy. Along with this, the rich have been given a shock. In this, the facility of paying tax by reducing the inflation rate on capital gains from property, gold and unlisted assets has been withdrawn. Due to this, much more capital gain tax will have to be paid on these assets.

Tax on property
Such changes should not be applied to properties purchased earlier. Earlier, people who bought property for investment purposes were assuming that they would have to pay tax on selling the house after adjusting it with the inflation rate. Usually in such cases, there was no higher tax liability due to inflation. Now this benefit has been withdrawn. This is cheating the investors. Well, with this step, the government has indicated to the voters that it is giving concessions to the weaker sections and increasing taxes on the rich.

to the east
The government has also made several announcements for the eastern states of the country. Interestingly, Andhra Pradesh, which has been a part of South India for centuries, has been declared a part of the eastern states along with Bihar, Jharkhand, Bengal and Odisha by the Centre. Several announcements have been made for these states regarding investment in infrastructure, tourism, corridors and industrial nodes. But if you think that this favour to the east is due to the demand of special status and additional funds for their states by Nitish Kumar and Chandrababu Naidu, who are part of the NDA, then I would say that it depends on your point of view. Actually, for the special packages announced in the budget, loans will be taken from multinational financial institutions. And often such money comes with many conditions.

The burden on companies will increase
Some of the government’s plans are surprising. For example, the internship plan. It has been said in the budget that 1 crore youth will be given a one-year internship in the country’s top 500 companies. This work will be done in the next 5 years. The government will provide some money for this. That means every company will have to keep 4,000 such people who have not got a regular job. These people will stay in the company’s campus for a year and the companies will have to pay them intern salary, out of which only 10% can be deducted from the CSR (Corporate Social Responsibility) fund. In this case, if the company wants to avoid litigation, then it will have to pay its minimum salary, say 2 lakh rupees annually. Just imagine how much financial burden this will increase on the big companies of the country.

Angel Tax
By the way, the government’s decision to abolish angel tax is commendable. The tax reduction on foreign companies can also provide some benefit. The tax concessions given to global financial centers can prove to be a lottery for tax professionals and lawyers. On the other hand, the rich who have been shocked in the matter of capital gains can get some relief from many financial concessions. Overall, it can be said that everyone will be happy with this budget.

Author: Kumar Mangalam Birla
Finance Minister Nirmala Sitharaman’s budget proposals contain a roadmap to transform India into a developed country. The priorities she has set for the government will create opportunities for all citizens in a ‘developed India’. These proposals include measures to maintain the country’s economic growth rate as well as ways for social development and technological advancement.

Employment-Skill Development
Employment and skill development are at the center of the ambitious goal of developed India set by the government. There are three unique employment schemes in the budget, which aim to create employment. Especially for those joining the job market for the first time and the manufacturing sector. Apart from this, the Center has introduced a skill development scheme, under which 20 lakh people will be trained in the coming 5 years. In this, they will be taught such skills, which are needed by the industries. Also, under this scheme, these people will be trained in modern technology.

Facing challenges
Through these multi-pronged schemes, the government’s aim is not only to create employment opportunities but also to ensure that these workers are prepared for the challenges faced by the industries. In fact, with the way the global economy is changing today, such challenges are bound to arise.

Growth of MSME
The budget has given special attention to the manufacturing and services sector. In this too, the focus has been on Micro, Small and Medium Enterprises (MSMEs). New credit guarantee schemes, assessment models, assistance programs have been proposed so that the growth of MSMEs increases and they can compete better.

focus on manufacturing
These measures along with the proposals for creation of industrial parks, critical mineral production are aimed at strengthening the manufacturing sector in the country and boosting its competitiveness in the global market.

The role of cities
Urban development has also been emphasized in the budget. The budget proposals show that the government wants to make cities the center of growth. For this, attention has been paid to redevelopment of existing cities, transit oriented development in big cities and housing needs. These urban development plans will accelerate urbanization. If urban infrastructure is sustainable and improved, it will further accelerate the economic development of the country.

Eye on net zero
In the proposals of Finance Minister Nirmala Sitharaman, along with changes in the energy sector, a lot of emphasis has also been laid on energy security. Renewable energy has been kept in the priority sector in the budget. Along with this, attention has also been given to increasing energy efficiency. This will prepare the ground for green and sustainable development in the country. Its image in the world will be that of a responsible leader and it will also help in achieving the net zero target.

Big investment on infra
The central government is also focused on infrastructure development. The Finance Minister has announced a capital expenditure of Rs 11.11 lakh crore in the financial year 2024-25. Such proposals have been made in the budget, which will promote private investment along with the government in this sector. The government understands how important this sector contributes to economic development and at the same time it also improves the quality of life.

Overall development
The expansion of the Pradhan Mantri Gramin Sadak Yojana to improve road connectivity in villages shows that the government is committed to inclusive development.

Research-Innovation
The budget has also highlighted how important innovation, research and development will be in India’s journey towards a developed country. The budget talks about creating a National Innovation Fund. Measures have been taken in this, which will promote research and innovation led by the private sector. The aim of these measures is to promote a culture of innovation and technological advancement in the country so that India can compete in the global knowledge economy.

Sustainable Agriculture
Along with this, emphasis has also been laid on increasing agricultural productivity in the budget. Announcements have been made regarding agri research, bringing varieties of crops that can survive bad weather and natural farming. These measures are being taken so that food security increases, farmers’ income increases and the agriculture sector can become sustainable in the era of climate change.

A new round of reforms
Finally, the budget also talks about new era of reforms. These include land reforms, labour reforms and ease of doing business reforms. To accelerate the economic growth rate and for these reforms, the government is also going to prepare a framework of macroeconomic policies. Fiscal consolidation is to be continued, which will bring macro-economic stability. Hence, investment in the country will increase, which is necessary for rapid growth.