By Sunil Kumar Das* :

Budget is a financial statement prepared for a defined period of time, detailing an estimate of expenses, revenue resources that need to be handled to achieve the targeted objectives.

General Budget 2015-16 can be termed as the budget of high aspirations. People from all walks of life, expects this Budget to be a unique one for all round growth of the nation and achieving financial consolidation.

Expectations of the common man soar high with Prime Minister Narendra Modi firing their imaginations. Will the budget be a pragmatic one or a populist one? Will it be social-sector centric? Will it be able to rein in inflation? Or will it boost up infrastructure development so badly needed for our country?

The finance minister will do good to the nation if he gives priorities to social protection measures like MNREGA, low-cost   housing, health insurance, crop insurance, drinking water projects, sarva sikhya avijan, mid day meal  etc with higher budgetary allocations to ensure better standard of life of the lower strata of the society.

It is needless to say that inflation needs to be contained effectively through budgetary mechanism, in particulars for items like, consumer non durable, food stuffs, provisions, vegetables. In past few months, common people have faced lot of hardship in day to day management of their families.

To ensure Prime Minister Narendra Modi’s “Make in India” dream a reality for faster development of the economy, there is an urgent need to substantially increase investment in infrastructures like roads, railway, power, industrial estates etc, which will project India as an attractive destination of investors.

Similarly, the FM should focus on creation of urban infrastructures with focus on education, health and sanitation etc need to be given a balance weight-age in budget allocations.

At the same time, the FM needs to address individual tax payer’s concerns like altering individual income tax slab and rate from the present level as listed below.

• While the present limit of total income below Rs 2.5 lacs is tax free, it should be increased to Rs 3 lacs.
•  Rs 2.5 lacs to 5 lacs taxed at the rate 10%, be change to 3 lacs to 5 lacs & taxed @10%,
• Rs 5.00 lacs to 10 lacs taxed @ 20% be change to Rs10 lacs to 20 lacs & taxed @20%
• Rs 10 lacs & above taxed @ 30% be changed to Rs 20 lacs & above & taxed @ 30% with weaver on education surcharge & education cess.
• Deductions u/s 80 C,be raised from the present level Rs 1.5 lacs to Rs 2 lacs.
• Introduction of administrative process to expedite settlement of tax refund.
• Deductions of 80GG, house rent paid be increased from Rs 24,000/ to Rs 60,000 pa.
• Deduction for interest during the contraction period may be allowed instead of presently allowing it only after the construction is complete. Further interest on housing loans may be raised from current Rs 2 lacs to Rs 3 lacs for a self occupied house property.
• Other deductions such as savings bank Interest income be increased from present limit of Rs 10,000/ to Rs 20,000/.

Prospective investors both in domestic and abroad are eagerly waiting to listen for the Saturday’s general budget presentation by finance minister Arun Jaitley. Industry estimates and expectations are very high on the deliverables. The industry is pinning high hopes for overall boost to the manufacturing and service Sectors. Moderate tax administration with a friendly non-adversarial tax regime both in the direct and indirect Taxes is expected. 

Let us hope to see how the Finance Minister addresses the multiple issues for the assesses across different domains and ensure overall growth and development of India with focus on proper fiscal management in order to contain inflation and create new job opportunity for the nation’s growth trajectory in the coming years.

* Sunil Das, a senior Chartered Accountant, can be contacted at mitudas@yahoo.co.uk.