The annual budget was out last week. The budget, which has the power to create and bring a change in the economy; the budget which can strengthen and boost the longevity of the economy in the international markets.
In this year’s budget finance minister Mr. ArunJaitley highlighted some key areas to work upon in order to strengthen the Indian economic infrastructure. As expected by many, the major focus areas of our budget this year were:
- Corporate taxes
- SETU Funds
The promises made by the PM Mr. Narendra Modi during his electoral campaigns seemed to clearly influence a major portion of the budgetary policies. Kulpreet Kaur, Co-Founder, Shop Pirate evaluates the budget from her point of view and highlights for us the key takeaways:
“The Union budget 2015 came across as a positive initiative by the government, benefiting all the sections of the society. There is a major focus on youth and entrepreneurs. The policies are targeted towards shaping up Digital India and strengthening the infrastructure for the same. SETU Fund has been introduced, which works on the principle of Jan DhanYojana. Besides this the 1000 warehouse startups policy promises to avail Rs.1000 crore on the setup of any technology industry that will promote the technological infrastructure in the country. It is a lucrative offering for the young entrepreneurs. This indicates the Government is recognizing the role of startups in the growth of Indian economy, which will ultimately help in creating more jobs. An amount of INR 150 crore is allocated for creating IT hubs. Also there is a good move to encourage people to take health insurance by increasing the tax exemption to Rs 25000.”
“I believe tax amendments are equally beneficial. Reduction in Corporate taxes by 5% seems like good news for all the big corporate houses. This implementation will reduce the tax from 30% to about 25%. This can be seen as a worthy opportunity to gain the confidence of the upper class. On the other hand, the service tax imposed on the service classes has been increased from 12.36% to 14% which is a clear indicator of price hike that the service class will be experiencing. This disappoints me a little as a business woman because will put adverse effect on certain services for business. But overall I am satisfied with the budget”
The huge responsibility of presenting the budget has been performed with utmost care. The market seemed volatile after the presentation of the budget but the future of India definitely seems brighter with a budget focusing on the overall economic development.