Answer by Gaurav Agarwalla:
Budget 2016-17 is a mixed bag. If I was to be a economist I would give it 3.5/5.
IMPORTANT Pros for AAM AADMI:
- Focus on agricultural Economics and agrarian crisis. PM Crop Insurance Scheme and PM irrigation scheme are emphasised and heavily allocated with resources.( “The total allocation for agriculture and farmers’ welfare is Rs. 35,984 crore")
- Focus on raising demand as a whole especially rural demand is appreciated.
- Health Insurance Scheme upto 1.3 lacs is bold in a developing country like India
- LPG subsidy for BPL women is again a good and rationale welfare measure.
- Every new scheme with a sunset time and review formula is a great step towards accountability
- allocation for 100% rural electrification is yet another well timed welfare scheme. Without electricity we can advance.
- Transfer of funds to panchyats from 80 lacs-1.5 crores per year is a step in right direction to empower grassroots democracy, will also increase rural demand.
- Statutory Status to Aadhar is very important to realise potential of DBT transfer and JAM Trinity.
- 15% surcharge on persons earning more than 1 crore is a step to realise progressive taxation policy.
- Coal Cess/ Rural cess is appreciated as it would raise extra revenue.
IMPORTANT PROS FOR INDUSTRY/CORPORATE:
- Ease of Taxation will lead to Ease of business, hence important
- Corporate tax down to 25% in small industries and 29% in Medium and Large industries is necessary to boost corporate confidence.
- Minimum of 25000 crores for Banks Recapitalization will boost banking sector .
- Banking Boards Bureau to clean up working of Banks is very vital .
- Announcement of removal of distinction between Plan and Non-Plan from NEXT FY is a bold move.
- Fiscal prudence is a laudable and disciplined step which will boost confidence.
- Greater demand created by the various schemes in Budget to raise confidence of Corporate sector to invest in various sectors aggressively.
- No radical reform in PDS system to minimize leakages by not adopting any of suggestions of Shanta-Kumar Committee.
- No tax for rich farmers or farm lobby.
- Less importance to Science and Research which is very vital for dynamic growth.
- Very defensive budged, i.e privatization and Disinvestment aren't the prime focus which is the need of the hour.
All said the budget is balanced and focus on Rural and Agriculture was important to raise cumulative demand.
How is the Indian union budget 2016-2017?