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Today, you will read General Awareness Topic:
"Perception is that Union Budget was for economists and not for Aam Admi"
All the policies and regulations created by the government are for the benefit of the Aam Admi. However, many a times, the Aam Admi fails to see how certain policies affect him since they are related to investments and infrastructure. However, if one looks closely and tries to understand the intent of those policies and analyses each and every policy closely, he will be able to see how they relate to him.
In the Union Budget 2013, which was released last week, Indian Finance Minister P Chidambaram gave a lot of importance to the country’s infrastructure. He decided that it was important to set up a regulatory body for road construction, develop two new ports in Andhra Pradesh and West Bengal, upgrade a port in Tamil Nadu, and develop industrial corridors along Bangalore – Mumbai and Chennai – Bangalore.
If one looks at the above mentioned areas strictly from an infrastructure development point of view, he will view them as areas of focus for economists. An economist will be able to analyze the effects of construction and development on the economy and suggest ways in which investors and the government can work together for a win-win situation.
These areas obviously do not affect the Aam Admi directly but in the long term, he will be able to feel the impact. Once infrastructure is developed and transportation becomes smoother, more MNCs will prefer to invest in India. This will result in more job opportunities and an increase in the economic growth of the country. This will automatically enhance the standard of living of the Aam Admi.
Housing is another area that some Indians will benefit significantly from. In order to boost the growth of low cost housing and the construction sector, the Union Budget has stated an additional tax break for new home loans up to Rs 25 lakhs, in which the value of the land and infrastructure does not exceed Rs 40 lakhs and the person has no other property under his name.
This will definitely benefit the lower middle class and low-income families. However, the increased tax rate on properties of more than 1 crore in value will be a blow to many upper middle class families, who have worked hard to build a home in expensive cities like Mumbai, Delhi and Bangalore. So, depending on which class a person belongs to, he either benefits or suffers from his new tax rule.
According to P Chidambaram, the goal of the Union Budget is – higher growth, which leads to sustainable and inclusive development. Within the goal itself, the government has added the element of the welfare of the Aam Admi. Instead of having a state which develops rapidly and leaves behind women and low-income families, the Union Budget has opted for an inclusive strategy, which ensures that all the people in India get proper benefits.