An open letter to the finance minister
Dear Mr. Finance Minister,
India’s strong 50 million middle class were a hopeful lot, till you announced your sixth budget so far on the 28th February 2011. It is a known fact that tax reforms is on high priority for us, the much coveted middle class but is anyone listening? You may have doled out Rs 2,000 to taxpayers by raising the exemption limit of general taxpayers to Rs 1.8 lakh, but me being a woman would reap no benefits as such. All of this now seems like a mere gimmick to shut our mouths. But it seems too little for UPA’s aam admi, given the fact that food inflation rates are almost touching two digits and cost of living in urban India is sky rocketing. Fine maybe I am reacting very strongly and I should look at the picture holistically, so let us do just that.
I am a 20 something. I live in a metro like Bombay where every restaurant has an air conditioning system; blame it on the sultry climate. Thus from now on I will pay an extra 3% over the existing 10% service tax. With most of my income spent on additional taxes and surcharges, it seems only sensible that not many saving scheme benefits have been announced. Probably the only benefit that the urban young with buying power will enjoy is cheaper and affordable prices on products such as laptops and cell phones. It seems the government has finally come to terms with the fact India is a young country with more than 70% of the population below the age of 35 years. We can now proudly term ourselves as a consumerist society. I completely understand your position and how you have to walk the tightrope, yet it would be wonderful if you remove the Aam Admi from your political agenda since it is clearly not about him anymore.
Another pinch for high travelers is the additional service tax on tickets. Ok, we cut you a slack for that one considering the ever increasing fuel hikes. With high stress jobs, health certainly seems to be a core issue for the flock and the increase in tax will definitely cost us dear and hit the pockets hard.
It is understandable that in a vast country like India with varied conflicting interests, the government is often seen walking the tightrope, but at the same time it is the common man who has to choose between personal gain or the greater good. I do not advocate a happy picture all the time, but with every budget the picture is just getting sadder.
Oh last but not the least let me take this opportunity and thank you for the effect your budget had on the markets. The 700 point rally shows neat on my portfolio least to say.
Yours faithfully,
Always an Aam admi
Dear Mr. Finance Minister,
India’s strong 50 million middle class were a hopeful lot, till you announced your sixth budget so far on the 28th February 2011. It is a known fact that tax reforms is on high priority for us, the much coveted middle class but is anyone listening? You may have doled out Rs 2,000 to taxpayers by raising the exemption limit of general taxpayers to Rs 1.8 lakh, but me being a woman would reap no benefits as such. All of this now seems like a mere gimmick to shut our mouths. But it seems too little for UPA’s aam admi, given the fact that food inflation rates are almost touching two digits and cost of living in urban India is sky rocketing. Fine maybe I am reacting very strongly and I should look at the picture holistically, so let us do just that.
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| Finance Minister Pranab Mukherjee gearing up for the budget. Photo Credit: Reuters |
While the critics called it to be an expected budget and ranked it to be a growth oriented exercise. Even the rural brigade gave the budget a double thumb to a budget set on the backdrop of a macroeconomic structure. The question is what happens to the aspirational life that the working class is so used to and often dreams of. It tends to seem that the opinion of the common man matters the least to the UPA and definitely this non vote bank population hardly makes an appearance in the ballot boxes. It is not unfair that he would have expectations from the budget given the fact the economy is doing so well, thus the high hopes.
I am a 20 something. I live in a metro like Bombay where every restaurant has an air conditioning system; blame it on the sultry climate. Thus from now on I will pay an extra 3% over the existing 10% service tax. With most of my income spent on additional taxes and surcharges, it seems only sensible that not many saving scheme benefits have been announced. Probably the only benefit that the urban young with buying power will enjoy is cheaper and affordable prices on products such as laptops and cell phones. It seems the government has finally come to terms with the fact India is a young country with more than 70% of the population below the age of 35 years. We can now proudly term ourselves as a consumerist society. I completely understand your position and how you have to walk the tightrope, yet it would be wonderful if you remove the Aam Admi from your political agenda since it is clearly not about him anymore.
Another pinch for high travelers is the additional service tax on tickets. Ok, we cut you a slack for that one considering the ever increasing fuel hikes. With high stress jobs, health certainly seems to be a core issue for the flock and the increase in tax will definitely cost us dear and hit the pockets hard.
It is understandable that in a vast country like India with varied conflicting interests, the government is often seen walking the tightrope, but at the same time it is the common man who has to choose between personal gain or the greater good. I do not advocate a happy picture all the time, but with every budget the picture is just getting sadder.
Oh last but not the least let me take this opportunity and thank you for the effect your budget had on the markets. The 700 point rally shows neat on my portfolio least to say.
Yours faithfully,
Always an Aam admi
