Right Direction but Less Than Expected

It was being expected that after demonetisation government will be able to get more tax from those who deposit their black money in the banks, and riding on higher tax collections thereon, government would be spending more on education, health and other social services. However, Budget 2017-18 seems to have disappointed people.

- Ashwani Mahajan

Common man struggling with the problems arising post demonetisation, had been expecting hugely from the Budget 2017-18. From that angle, budget seems to have been underachiever. Income tax exemption limit remained same, though rate was halved and those with five lakh income got a relief of rupees 12,500. For more relief perhaps they need to wait till next year. In the name of MSMEs, some relief is given to those companies with a turnover of rupees 50 crore or less and they will now pay 25 per cent less tax.

It was being expected that after demonetisation government will be able to get more tax from those who deposit their black money in the banks; and riding on higher tax collections thereon, government would be spending more on education, health and other social services. However, Budget 2017-18, seems to have disappointed people. Though size of the budget 2017-18 is bigger by rupees 1.5 lakh crores, compared to Budget 2016- 17, at 21.47 lakh crores, however social services failed to get expected hike in allocation.

Economy in a ‘Bright Spot’