M A I N   N E W S

The Budget And You
Tribune News Service

New Delhi, February 28
Twenty years ago, the Central Government’s share in the total investment made in the country used to be 80 per cent. It has come down to just 18 per cent, indicating the dominating role being played by the private sector, pointed out analysts on the Budget day.

The experts appeared pleasantly surprised at the Finance Minister’s cautious approach. The projected market borrowing by the government, they said, was lower than expected and so was public expenditure, which was a “good sign”. But shorn of the jargon, what is there for the aam aadmi? Here’s a quick summary.

Farmers who repay their loans in time will now be eligible for more loans at 4 per cent interest. And the Budget increased the agri-credit target by a whopping Rs 1 lakh crore for the next year.

To contain inflation, the FM set aside Rs 2,200 crore to increase production of vegetables, millets, milk, pulses, palm oil and fodder. Vegetable clusters, initially close to the metros, will be set up to ensure a steady supply. The country continues to import 3 to 4 million tonne of pulses and 9 million tonne of cooking oil and the measures are meant to reduce it.

BPL families, numbering 6.52 crore, will get “ cash coupons” in phases to encash subsidies on fuel, food and fertiliser. In the long run, once the system covers all BPL families in the next three years, chances are that subsidy on LPG etc. will be withdrawn.

Salaried employees with income up to Rs 5 lakh and with no other source of income will no longer be required to file I-T returns. If such employees have income from dividend and interest payment etc., they will be required to disclose it to employers for tax deduction at source. Form 16 will be treated as their return. But the number of such tax payers is believed to be just 15,000.

Service tax on LIC policies has been raised from 1 to 1.5 per cent, upsetting the insurance sector, which predicts that policy holders will not only bear the additional burden but also get lower returns.

Hospitality INdustry, similarly, is upset with the imposition of service tax on hotels with tariff exceeding Rs 1,000 and on AC restaurants with bars. This will be in addition to the luxury tax charged by states and VAT on food, which will make eating out dearer.