While many may term Budget 2008-09 as populist, the finance minister's proposals should positively impact all sections of the society, including industry and the common man. The proposals to waive off loans would benefit four crore farmers, while the increase in the income tax slab rates would benefit another one crore individuals. Although there are no significant proposals for India Inc, they don't have a big reason to be unhappy about either. Although the demand for cut in corporate tax rate (or removal of surcharge) among many others has not been heeded, the Budget has not increased the burden in any manner.
Moreover, it has proposed a reduction in the peak excise duty from 16 per cent to 14 per cent and in central sales tax (CST) from 3 per cent to 2 per cent, while leaving import duties unchanged (read: no reduction).
That apart, there are proposals for specific sectors including auto, steel and pharmaceuticals among others aimed at providing protection or growth stimulus to Indian industry. Besides, higher allocation towards infrastructure, power, irrigation and defence sectors are also a step in the right direction.
All this put together and the fact that there is more money in the hands of individuals, the Budget aims to provide a boost to consumption and simultaneously, curb inflationary pressure. To give an example, for a salaried individual earning Rs 5 lakh a year, the income tax proposals mean a saving of about Rs 45,000 per annum, which is equival
