Coming in power with huge majority Narendra Modi government submitted their first-finance budget to the parliament yesterday. During the submission of budget for the 2014-15 financial years, Finance Minister Arun Jaitley claimed that, the budget would encourage the growth of the economy and reduce the deficit in the treasury, and it would make the economic wheel functioning again.
Mr. Modi’s main issue in the election campaign was economic development – and in this background of his government’s first-budget today industrial corridors, stock market and common people have given a positive response.
The main slogan of Modi’s vote promotion was – ‘Acche din aane wale hai’; it means good times are coming soon. But this good time does not mean one after another popular announcement of the government, but to be prepared for some unexpected decisions, Prime Minister himself made it clear after coming to the power.
Finance Minister Arun Jaitley made understood with his first budget that, the main target of the government is to raise the growth rate into seven to eight percent that lingering under five percent for the past two years. Mr. Jaitley said in his budget speech in parliament that, India has deflation pursuing the way of growth.
People are desperate to rise who are under the line of poverty. Those who got the opportunity to overcome from that, they desire strongly to enter in the new middle class. Next generation is desperate to utilize the opportunities created by the society, but the situation has become very difficult because the growth rate is less than five percent said Mr. Jaitley.
To face the challenge, Mr. Jaitley has taken various measures in the budget for more foreign investment, proposed to increase spending in the infrastructure sector and start GST or product and service tax. Foreign investment in the Defence and Insurance sector has been increased from 26% to 49%.
Subsidies in the cereal and oil-gas are highly sensitive political issue in India; he has indicated that this subsides would be taken up gradually. The subsidies will be now more targeted or will be for specific groups; however, Mr. Jaitley didn’t say anything in details. Former advisor of Businessman Association FIKI – Anjan Roy said, the budget made by Finance Minister in six weeks is demand’s appreciation.
“The Finance Minister addressed some fundamental issues in the budget- such as the issue of taxes. He has made clear the government policy in corporate sector’s tax structure, so the debate and cases expected to be closed.”
Mr. Roy said, signal will be sent to investors whom the tax-regime of India is stable. The budget is not bad – according to his opinion Finance minister thought so many things in the budget. “Reform the gorge of Ganga to making state, Police Memorial, Hospital, he didn’t miss out anything. There’s no need to look at so many issues; budget will seem so much consolidated or focused.” Finance Minister has tried to limit the deficit of the treasury and his efforts to make all the groups of the country happy in a small amount didn’t ignore.
The working middle-class people of the city considered to be the big supporters of BJP, the highest limit of tax remission has been extended in many ways for them, even though the tax rate didn’t show any change. Tax rate reduced on LCD TV or refrigerator in many cases; on the other hand, price has been increased of cigarettes or tobacco products.
A woman consumes said; it doesn’t vary to the poor people of the country if the price of a refrigerator TV increased or reduced. Rather than it’s more important to keep the price within reach of their daily living needs things. However, some support the increasing price of tobacco products and other drugs; they said if the cost increases these things will be out of their hand. Mr. Jaitley has taken his budget target; he will bring down the deficit if a treasury under GDPs 4.1 percent.
He wants to reduce this percentage under 3 percent in next two financial years. He made clear the reason in today’s budget and said government don’t want to impose any debt to the next generation of India.