Abhishek Vij
On Sunday at 11:00 AM, Union Finance Minister Nirmala Sitharaman presented the country’s new economic budget. This was the 9th economic budget presented by her. While her 85-minute budget speech did not offer any relief in the income tax structure, Nirmala Sitharaman’s budget focuses on strengthening the country’s infrastructure. The allocation of funds is also being done with this goal in mind. Broadly, this budget makes medicines for cancer and diabetes treatment cheaper. EV vehicle batteries, leather products, smartphones, tablets, etc., will also become cheaper. Sports equipment, solar panels, and microwave ovens will also be cheaper, while alcohol will become more expensive.
Providing false information in income tax returns will attract a penalty equal to 100 percent of the tax amount. Securities Transaction Tax has been increased from 0.02 percent to 0.05 percent. However, a relief has been given on sending money abroad, with the TCS (Tax Collected at Source) reduced from 5 percent to 2 percent. Along with the lack of income tax relief, the expectations of major players in the stock market were also not met. The tax imposed on their high-value transactions had a negative impact, causing turmoil in the stock market immediately after the budget presentation. The stock index started falling. At one point, it fell by 1300 points, after which there was a slight recovery. Gold and silver prices also fell. This does not mean that the budget lacks a visionary approach for the welfare of the country.
The new approach is to shift the focus of investment from metropolitan cities to Tier 2 and Tier 3 cities. There are plans for significant investment in the pharmaceutical industry. The issuance of Amrit Bonds worth Rs 200 crore clearly indicates that the government now wants to bring development to smaller cities. For the first time, attention has been given to the elderly. It has been stated that 1.5 lakh service personnel will be appointed in their care and health centers, and at least 5 lakh people will be trained for this purpose. Rs. 10,000 crore has been allocated to bring about improvements in the pharmaceutical sector. The budget acknowledges that India earns significant revenue from the tourism sector, and therefore, there is a plan to recruit 10,000 new tourist guides. A new hotel management complex will be built for their training. New tourism infrastructure will be developed in 15 cities across the country.
A special mountain train service will be introduced for Himachal Pradesh, Uttarakhand, and Jammu and Kashmir. This will be a separate service to create a unified appeal for tourists visiting these three locations. The Union Budget has focused on small farmers and announced the development of a cooperative framework for them, along with the launch of a Blue Revolution (fisheries).
Large ponds will be constructed for fish farming. A humane aspect of the Union Budget is the provision of special treatment facilities for disabled individuals and those with mental health issues. It has been made easier for Non-Resident Indians (NRIs) to sell their property in India. They will now be able to sell their property using only their PAN card. There will be no penalty for individuals holding assets worth up to one crore rupees abroad. Crediting the success of economic policies, it has been announced that 25 crore people have been lifted out of poverty. Overall, Nirmala Sitharaman has presented this budget as a stable foundation for the long-term development of the country. It certainly deserves to be welcomed.