The proposed union budget is out today and the common man has a sigh or relief at the first glance. After the railway budget declared no fare hikes, the union budget also has brought some cool breeze.
The income tax slabs have changed, additional investment in infra bonds are allowed thus increasing the total limit under section 80C. The indian made appliances, toys, mobile phones are going to be cheaper. Small cars continue to be reasonably priced, the service tax is unchanged.
I am not very clear about the stance on agricultural sector and poor farmers (not the rich ones). It seems that there is some strategy for growth in agricultural/foodgrain sector. Debt repayment period is extended, new food processing projects and a new fertilizer policy is announced.
On the other side, some factors will affect the cost of living to go up. Rolling back of excise duty (big cars, cigarrettes, pan masala etc.), fuel (already increased by Rs.2.50/lit from this midnight) are a few.
The proposed GST is pushed further by another one year from 1st Apr 2011. So the uniform trade taxation still remains in the books.
Overall, the common man, the middle class and salary earning population of the country will be really happy. They should be really looking forward towards more 'consumer power' with this new budget.
