BUDGET 2024-25: I-T breather, focus on jobs, skilling, MSMEs; nothing for common man

Nitin Jain

Ludhiana, July 23

Changes in personal income tax rates to reduce the tax outgo of the masses, increase in standard deduction for salaried employees from Rs 50,000 to Rs 75,000 under the new income tax regime, identifying nine priorities for generating ample opportunities in productivity and resilience in agriculture, employment and skilling, inclusive human resource development and social justice, manufacturing and services, urban development, energy security, infrastructure, innovation, research and development and next-generation reforms, abolition of angel tax for all classes of investors in start-ups, have got thumbs up from taxpayers and the business community in Ludhiana.

Industrialists, self-employed, employees and lower, medium to high class sections in the state’s industrial capital have hailed the five schemes announced to focus on 4.1 crore youth over five years with an outlay of Rs 2 lakh crore, internship scheme for one crore youth in top companies over five years, employment-linked incentives, including one month’s wage support for first-time employees, credit guarantee scheme, term loans for machinery purchase, technology support package for MSMEs, 24 new SIDBI branches to serve MSME clusters and doubling the Mudra loan limit from Rs 10 lakh to Rs 20 lakh.

However, the common man on the street found nothing lucrative or on offer for ones looking for some relief from the rising inflation in the Union Budget for 2024-25, tabled by Finance Minister Nirmala Sitharaman for a record seventh consecutive time in Parliament on Tuesday.

A cross-section of local residents, to whom The Tribune spoke to elicit the Budget reaction, also welcomed financial support for higher education loans up to Rs 10 lakh, provision for rural development at Rs 2.66 lakh crore and over Rs 3 lakh crore allocation for schemes benefiting women and girls but lamented that the Modi 3.0 government has again ignored the ‘aam aadmi’, who was finding it difficult to make both ends meet due to skyrocketing prices of essentials in the present times.

An auto-rickshaw driver, Raju, said: “With no relief offered to the poor and marginalised sections of society, the Budget means nothing for us as we are again left to fend for ourselves.”

“Salaried employees can save up to Rs 17,500 in income tax under new tax slabs with the increase in standard deduction and revised tax rates,” said Sushmita Rana, a tax consultant.

An infrastructure developer, Ravish Khandelwal, said: “Capex spend at Rs 11.1 lakh crore, unchanged from the Interim Budget and infrastructure spend at 3.4 per cent of the GDP will boost development.”

“Women in the workforce will get a major boost with the FM’s assurance that creches will be set up to help them,” felt banker Anupriya, who is a mother of two toddlers.

A progressive farmer, SS Bains, welcomed the initiative to introduce 1 crore farmers to natural farming over two years and transformation of agricultural research to focus on productivity and climate-resilient crop varieties.

“Rental housing in the PPP mode for industrial workers, focus on job creation and boosting consumption, potentially benefiting consumer goods, real estate and auto sectors will help boost regional development,” said an industrial worker, Ajay Srivastava.

A social worker, Surabhi Sinha, said: “Over Rs 3 lakh-crore allocation for schemes benefiting women and girls and extension of the Pradhan Mantri Garib Kalyan Anna Yojana for five years, benefiting over 80 crore people, will lead to development of women.”

“Development of Digital Public Infrastructure (DPI) applications for credit, e-commerce, law and justice, and corporate governance will take technological advancements to a new level,” believed Radhika Singh, who recently launched an e-commerce start-up.

“The proposed allocation of Rs 1.28 lakh crore for telecom projects and public sector companies under the Telecom Ministry, with over Rs 1 lakh crore of the total proposed allocation intended for the BSNL and MTNL will help upgrade state-owned telecoms,” said a former BSNL official, Vikas Sharma.

A leading pharmaceutical promoter, Viral Shah, lauded the complete waiver of customs duties on three more cancer medicines, which, he said, would make cancer medication more affordable for the ailing humanity. “Changes to the capital gains tax structure with a hike in the long-term and short-term capital gains tax will impact small and medium players,” said stock broker Harsh Suri, who welcomed the rise in the long-term capital gains tax exemption.

WHAT THEY SAY

“Disheartened to hear Budget proposals. Punjabis had high hopes from Modi 3.0 but the FM chose not to mention Punjab even once throughout her speech. The country’s food bowl deserves special grants for our infrastructural needs but the BJP continues to ignore the state.” — Amrinder Singh Raja Warring, Ludhiana MP

“Budget is inclusive and focuses on infrastructure development, education, healthcare and MSMEs. It will create jobs, stimulate growth and improve lives. The emphasis on green energy will drive innovation and transparency. Natural farming initiatives, climate-resilient crops and digital agriculture infrastructure will revolutionise farming.” — Ravneet Singh Bittu, Union Minister and former Ludhiana MP

“Budget has continued the streak of ignoring the health sector that too just in two years of dealing with the pandemic, as no significant rise in budgetary allocation for the Health Ministry can be noticed. Last year’s budgetary allocation stands underutilised. The textile industry was expecting duty reduction on imported raw cotton, which has not been done.” — Sanjeev Arora, RS MP

“It will go down as a “Sarkar bachao” Budget, which was tailor-made for two NDA allies in Bihar and AP even as farmers, poor and youth across the country were ignored. There is nothing for Punjab in the sixth continuous Budget since SAD exited the NDA government. Why Punjab is being discriminated against at Centre’s hands.” — Harsimrat Kaur Badal, SAD MP