There Finance Minister P Chidambaram ignites the Union Budget for 2007-08, here it catches fire in the news room, irrespective of the fact what they are taking it seriously may not be fully or partially comprehended by the general public.
Caught by the infamous bug inflation and the recent setback it had faced in the Punjab and Uttaranchal legislative elections, for the Finance Minister surely it was not an easy walk.
The budget primarily outlayed hike in the agriculture (Rs 8558), health (Rs 14,363) and education (Rs 28674) sectors. Defence got Rs 96,000 allocation in its kitty. Again, it is all about nerve wrecking figures. Just take this budget as the budget allocation as we all see and witness in our homes.
Here is the glance of the Union Budget 2007-08
PERSONAL AND SERVICE TAX RATES remain the same.
INCOME TAX EXEMPTION THRESHOLD increased by Rs 10,000 for all assesses, giving a relief of Rs 1000.
EXEMPTIVE LIMIT on banking cash transaction tax for individuals, Hindu undivided families raised families raised from Rs 25,000 to Rs 50,000.
SENIOR CITIZENS
Exemption raised from Rs 185,000 to Rs 195,000, giving a relief of Rs 2,000 in income tax.
Deduction in medical insurance premium under section 80D raised to Rs 20,000.
Senior citizens who are house owners can get monthly income mortgage.
THE CORPORATE WORLD
Corporate tax rate remaining same
Surcharge on income tax on all firms and companies with a taxable income of Rs 1 crore or less to be removed.
DIVIDEND DISTRIBUTION TAX RATE raised from 12.5 % to 15% and to 25% on dividend paid by many-market mutual funds liquid mutual funds.
In addition to all these addition and subtraction, an allocation of Rs 500 crore for the Commonwealth Games 2010 to be held in Delhi was earmarked. Commonwealth Youth Games to be held in Pune next year got mentioned in the budget with Rs 50 crore earmarked for it.
The budget as usual doesn’t come in sync with people’s expectation, it is understandable one possibly cannot keep everybody happy. For some, like Kumar Mangalam Birla, N Nilekani, Mukesh Ambani and Pawan Munjal, no doubts, the budget paints a rosy picture. But for Sitaram Yechury whose party is a component of the central government and Yashwant Sinha, former FM, the budget has failed to come to the expectation of aam aadmi.
The bottomline of the whole exercise is that market and the people would not even remember it in a few days.
