18 Budget.....

The Budget 2018 has been dedicated to rural-agriculture, health insurance, women, elderly, corporate, exports, education and skill development, smart cities, MSMEs….. heads mainly…

The FM proposed to give 1.5x more MSP to farmers, which is quite welcome keeping the condition of the poor famers in the mind… He put to stress on its promise to double farmers’ income by 2022… The budget set line to setup food parks and repeated to promote domestic and foreign investment in the food processing and marketing… It sought to improve credit to farmers through NABARD and better credit facilities through NBFCs, which is mainly responsible for farmers’ suicide, credit penetration in rural areas in much lower… However, investment in food storage and irrigation has been a long pending demand which could help boost farm incomes further… Nonetheless, there has been less eye on promoting (rich) farmers or farmers group to invest in value addition in food by the famers themselves by incentivizing them through interest rate schemes… The government should give MSME status to agriculture to increase value addition and employment in the rural areas… The idea to bring rich farmers in the tax net could help bridge the revenue deficit… The government could have brought agri-bonds to increase investment in agriculture… The government has also given a fund of Rs 500 crore to ensure onion and potatoes during low supply, the main two which the poor consume more… The government has also showed interest in organic farming to increase production of food in the country…

Moreover, the government has given much attention to health of the masses through increased coverage under the health insurance schemes that seek to benefit 50 crore people… on the same side it has also allocated more money for people those suffer from TB… The FM, on the line of the developed countries, tried to cover people under universal health insurance plans… Moreover, it pledged to cure the problem of under or mal nutrition … Good food add value to human capital…

The women working force in the offices has now to contribute less in the first three years of employment… as low as 8% towards EPF... As far as income tax is considered the government has made a standard reduction of 40000 for the salaried… Nonetheless, the long held expectation on reduction in income tax has been promised to consider in due time with the evolving revenue needs to bridge the deficit… indirect tax reform is still on the anvil… which is likely to come as low as the corporate taxes, atleast expected… The budget has sought time for indirect tax reforms… Nonetheless, pensioners have also been given relief on investment limit to Rs 15 lakh…

The government has thought to reduce corporate tax to 25% on a limited turnover which is likely to increase investment and employment by the corporate… The business majority is happy with the proposals in the budget that is likely to catalyze investment and employment… Notwithstanding, the business and MSME’s are among the biggest beneficiaries and easy credit in the budget that are employment and labour intensive sectors of the economy… especially the apparels, textile and footwear…

  

The government has raised import duty and cess on wide range of imported items to increase local productions and employment in the economy… including cell phones… to stimulate domestic investment and employment…..

The government has proposed to increase enrollment in primary education by incentives… it has sought to promote digital education to reduce cost of skill development through online video classes… The government would increase skill development through local skill development centers… Skill development is crucial for employment and demand…..