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 Good

• 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.

The Bad

• 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.

The Ugly

• 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.