India’s new finance minister, Arun Jaitley, is all set to release the Union Budget 2014-15 on July 10. This is going to be his first time as a finance minister and it surely is not going to be a cakewalk for him, as he is supposed to make middle class happy by offering tax concessions and reliefs. While doing so, he also has to ensure that the economy gets more opportunities of investment and growth. Therefore, he has to come up with such a strategy that brings equilibrium between people’s expectations of tax sops and increased opportunities of investment and growth.
The new BJP government came to power with all the promises of bringing back all good days for the citizens by bringing down the inflation rate, eliminating fiscal deficit and by coming over energy crisis. Now that it is time for them to present budget for the financial year 2014-15, the citizens of India who brought the BJP party in power are expecting to get a budget that stands well on their expectations. People want the government to raise tax slabs, and the salaried class is demanding a hike in the limit of annual tax exemption, as a desperately needed relief.
Now talking about the decisions that are expected to boost our economy, finance minister will probably declare tax incentives for industry and will reduce gold import duties. The government has already given extension to the excise duty concessions till December on consumer durable and automobile sector. To offer some relief to the farmers who suffer because of irregular weather conditions, the BJP government has proposed to establish a price stabilization fund.
The budget will be not so good for the smokers, as the excise duty on tobacco products will go up. In addition, the tax rate will be increased for people earning more than 10 crore annually.
Prime Minister Narendra Modi has made this very clear in an interview that he will take tough action against any threat or obstacle in the way of the country’s financial health. He has also mentioned that he might lose all the love he has got from the citizens, but people will return all that love with deep respect when they will realize the true motive of the BJP government behind all the tough actions. This way the BJP government is quite confident in restoring the lost financial health of India.