Indian finance Minister Pranab Mukherjee presented Union budget on Monday 6 July by telling that it has made only for Aam aadmi . But is it for aam aadmi in real sense ?
First of all we should define the Aam aadmi of India . Every Indian whose per day income is between Rs. 100 to Rs. 500 , I think that person is the aam aadmi of India . But this budget , there is no provision for Garib aadmi . 20 crores of Indian who is earning less than Rs. 100 per day in India . It is also true that finance secretary Ashok Chawla said that Govt. of India will launch new scheme of Job Guarantee to 1.20 crores people every year . But , I think it is just 1 % of total population of India .
Union or Finance budget are very important because this budget can show what is the future earning and what are the future expenses of Govt. of India and what amount of fiscal deficit will cover from what source . For understanding the union budget to general people , I can take simple example from your family budget . Suppose , if any person's annual earning is Rs. 100000 and annual expenses are Rs. 130000 . It means he is in family deficit and for paying Rs. 30000 expenses , he has to take loan and it will effect on next family budget because , he has to pay interest on loan out of next family incomes . Same Situation is Indian union budget . FM shows exuberant expenses of Rs. 10 Lakh crores for 2009 - 2010 .
Fiscal deficits are also increased by 6.8% of GDP . For fulfilling this fiscal deficits Govt. of India will take loan of Rs. 401000 crores . But I think after showing deficit budget , Govt. fixed good target of Indian Growth rate that is 9 % . But still it is 6.7% . This is not high target but if all expenses will use properly in different scheme , 9% growth rate can be easily achieved .
Now , we discuss different scheme which are mentioned in Union budget for Aam aadmi .
In brief , I have explained FM's new projects and scheme . But most real benefits are given only in tax exemption but still FM's budget do not explain how to upgrade Garib Aadmi of India . Projects in Finance bill is good but without proper utilization by government department . It is so difficult to reach help to Aam aadmi .
Education Sector
FM has encouraged young students for getting higher education .
First of all we should define the Aam aadmi of India . Every Indian whose per day income is between Rs. 100 to Rs. 500 , I think that person is the aam aadmi of India . But this budget , there is no provision for Garib aadmi . 20 crores of Indian who is earning less than Rs. 100 per day in India . It is also true that finance secretary Ashok Chawla said that Govt. of India will launch new scheme of Job Guarantee to 1.20 crores people every year . But , I think it is just 1 % of total population of India .
Union or Finance budget are very important because this budget can show what is the future earning and what are the future expenses of Govt. of India and what amount of fiscal deficit will cover from what source . For understanding the union budget to general people , I can take simple example from your family budget . Suppose , if any person's annual earning is Rs. 100000 and annual expenses are Rs. 130000 . It means he is in family deficit and for paying Rs. 30000 expenses , he has to take loan and it will effect on next family budget because , he has to pay interest on loan out of next family incomes . Same Situation is Indian union budget . FM shows exuberant expenses of Rs. 10 Lakh crores for 2009 - 2010 .
Fiscal deficits are also increased by 6.8% of GDP . For fulfilling this fiscal deficits Govt. of India will take loan of Rs. 401000 crores . But I think after showing deficit budget , Govt. fixed good target of Indian Growth rate that is 9 % . But still it is 6.7% . This is not high target but if all expenses will use properly in different scheme , 9% growth rate can be easily achieved .
Now , we discuss different scheme which are mentioned in Union budget for Aam aadmi .
- New tax exemption is increase of Rs. 10000 for tax payers and for senior citizen it will be increased of Rs, 15000 . Now tax payer need not pay any tax up to Rs. 160000 and senior citizen need not pay any tax up to Rs. 240000 .
- Fringe benefit tax is fully abolished but minimum alternative tax (MAT ) is increased from 10 % to 15% . But whole corporate sector's employee and employers welcome FM's decision .
- 10% surcharge is also abolished earning more than Rs. 10 lakh for helping Amir aadmi .
- FM has started new schemes of national living mission and Rajiv Awas yojna and fix expenditure for these projects Rs. 12887 crores for helping urban people who have no own house in urban area .
- For increase agricultural credit flow , FM makes provision of Rs. 325000 crores for providing new loans to farmers at minimum 7% interest rate .
- Rs. 4000 crores will be given as loan to small industries .
In brief , I have explained FM's new projects and scheme . But most real benefits are given only in tax exemption but still FM's budget do not explain how to upgrade Garib Aadmi of India . Projects in Finance bill is good but without proper utilization by government department . It is so difficult to reach help to Aam aadmi .
Education Sector
FM has encouraged young students for getting higher education .
- Deduction of tax on the interest paid on education loans under section 80 E for all field of higher education
- Subsidy in the interest rates
- Govt. has allocaed Rs. 900 crores under “mission education through ICT” .
- Budgeted expenses on education sector is increased by Rs . 2000 crores .
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