Wednesday 1 February 2017

Indian budget 2017 - The good, bad and ugly

A good budget

  • Reduces taxes
  • Reduces deficit by cutting subsidies
  • Reduces bureaucracy, rules and regulations
  • Gives more freedom to people.

So here are the highlights of budget 2017

  • No cash transaction above Rs 3 lakhs. Bad because it reduces freedom. People should decide the mode of payment, not government rules.
  • Mahila Shakti Kendra for welfare of women to allocated Rs 500 crores. 60 days interest waiver for farmers. MGNREGRA allocated Rs 48,000 crores. Ugly because government subsidies are mostly wasted.
  • Tax rate for people earning between 2.5 to 5 lakh brought down from 10% to 5%. Good.
  • Foreign investment board abolished. PSEs like IRCTC to be listed. Good. Lesser the bureaucracy, the better.
  • Cash donation to political parties curbed at Rs 2,000. Good.
  • Higher taxes for rich. Bad.

Overall the budget doesn't do anything significant. So the Indian economic conditions will remain mostly the same i.e.

  • Large scale corruption
  • High inflation
  • Lack of skills to compete globally
  • Rupee will continue to fall in value against real money i.e. gold/silver.


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