Economy & Equity

The Union budget attempted to fix supply-side factors once again without paying enough attention to firm up ways to bolster consumer demand. Instead, the whole budget exercise for this financial year seems to concentrate solely on reducing the targeted fiscal deficit from 5.1% (in the interim budget) to 4.9%, the maximum price for which will now be paid by taxpayers. Taxpayers in the bottom slabs have been given relief doles in income tax, all of which will be undercut by heavier taxations on their investments. The tax on short and long-term capital gains has now been increased, something that Sitharaman said would “simplify” the tax structure. swing traders in the share market, a majority of whom earn less than Rs 50,000 in a month, will now have to pay much more in taxes than earlier. In contrast, the budget has slashed corporate tax for foreign companies from the existing 40% to 35% to incentivise foreign investments. In any case, the Modi government over the last decade has waived off a large chunk of taxes even in the previous tax structure. https://thewire.in/economy/modi-policy-paralysis-budget Ajoy Ashirwad Mahaprashasta 23/Jul/2024