Budget 2018: Good, Bad or Ugly?
With the national polls emerging next year, Finance Minister Arun Jaitley has rolled out a budget designed to help the farmers and rural areas while boosting growths, private investment and jobs. Everything has its positives and negatives. Arun Jaitley has offered a mixed bag of budget for the financial year 2018-19 which includes the best and the worst. With a pro-farmer and Make in India bent, the Union budget 2018 carved the way for 2019 elections.
Here are a few positives and negatives gathered by MUDS Management, a leading CS firm in Delhi –
- The minimum support price for the Kharif crops is hiked by 1.5 times.
- There will be no TDS for senior citizens on FDs and post office deposits upto Rs 50,000.
- There is a ride in the custom duty on the mobile phones from 15% to 20% helping the domestic manufacturers.
- There will be a standard deduction of Rs 40,000 for the salary people
- There is no legal status for cryptocurrencies.
- A package worth Rs 7100 is allocated for the textile sector.
- The government contributes around 12% of wages for new employees for PF.
- Under the Ujwala scheme, free gas connection will be given to 8 crore poor women.
- Lower tax rates of 25% with companies with a turnover of Rs 250 crore.
- 100% tax deduction for companies registered as farmer producing companies with a turnover of Rs 100 crore.
- There are no changes in personal income taxes. The middle section was expecting some changes in the tax slabs while some others may expect raises on the exemption limit.
- The government opted for a wider fiscal deficit at 3.5% of GDP for 2018-19 and projected the deficit at 3.3% of the
- GDP. Higher fiscal deficit for the government credibility and FDI amongst the many other things.
- The luxury industry on the other side is left wanting for significant contributions.
- There is no tax cut for the big corporates which could help revive private investment and create more jobs.
- Government has introduced LTCG tax of 10% on the capital gains over Rs 1 lakh.
Too sum it up, CS firm in Delhi and around applaud the Union Budget of 2018-19 presented by the Finance Minister focussing on empowering the youth, developing infrastructure, facilitating MSMEs, reforming agricultural and rural sectors.