Budget focuses on farming community
Visakhapatnam: Associate Professor- Economics and International Business of GITAM University Dr Radha Raghuramapatruni said that the Union Budget demonstrates the Finance Minister’s intent to boost investments in rural development, education, healthcare and social sectors. The budget was focusing on farmers and the farming community, she pointed out.
Analysing the budget 2018-19, Radha Raghuramapatruni opined that the budget promises to raise the minimum price offered to farmers for crops, while investing heavily in agricultural markets across the country. It also delivers more money for rural areas, including irrigation projects and aquaculture projects, usage of solar-powered pumps for irrigation, she said.
“This is a welcome note as still 56 percent of Indians still depend on agriculture and allied activities directly or indirectly. The big initiative is the rural infrastructure where the farming community and agri-processing industries will be largely benefitted as the government's estimated budgetary and extra budgetary expenditure on infrastructure for 2018-19 is being increased to Rs 5.97 lakh crore against estimated expenditure of Rs 4.94 lakh crore in 2017-18,” she said.
The individual exemption limits for paying health insurance have been increased to Rs 40,000 from Rs 25,000 for the tax payer and Rs 50,000 from 30,000. With this, an additional Rs 20,000 to Rs 35,000 could be favourably looked at by individuals for allocating to health insurance premiums. India’s move towards social security is clearly seen, she explained.
On the direct tax front, the infrastructure sector did not get any relief on its long term standing demand of abolishing MAT or introducing group taxation provisions. However, 25 per cent corporate tax rate has been extended to companies having turnover up to Rs 250 crore in 2016-17.
On the indirect tax front, social welfare cess of 10 per cent has been proposed on import of goods by replacing existing education cess of three per cent, she said.