It is middle-class friendly budget, masses will benefit

I agree to the business leaders who have termed the interim budget middle-class-friendly, apart from addressing the issues of rural India.

Piyush Goyal Finance Minister has sought to balance fiscal discipline with welfare necessities in an election year, as he announced a direct cash transfer plan for distressed farmers and a mega pension plan for unorganized sector workers.

The  promise to put more money in the hands of the salaried and middle-class by announcing tax rebate for people earning up to Rs 5 lakh got very cheerful response. Even in our offices employees felt elated. However I think people have not fully understood the scheme and to my understanding the first tax slab has not changed and remains at 5% for Rs. 2.5 to Rs 5 lakh but rebate u/s 87 A has been increased to Rs. 12,500 for assessee having income less than Rs. 5 lakh. So only taxpayers in lowest tax slab of 5% having income up to Rs 5 lakh will benefit.  

The “standard deduction” was raised – a flat amount on which taxes are not paid—to Rs 50,000 from Rs 40,000 annually. He also raised the income tax exemption on bank deposit interests to Rs 40,000 from Rs 10,000 currently.

This interim budget also broke the convention of not announcing major income tax changes when governments are in transition. I specially welcome the government’s plan to create digital infrastructure for one lakh villages. The successful implementation of the Digital Village project will play a vital role in India’s digital transformation and vision to become a $5 trillion economy in the next 5 years. The electric vehicle vision till 2030 is very exciting for many reasons. 

After hearing Modi government’s economic and reform policies, generously peppering his 100-minute speech with details of signature initiatives such as Ayushman Bharat, Pradhan Mantri Jan Ausadhi Yojana, Make in India, Jan Dhan Scheme, Start-Up India, MUDRA and the Insolvency and Bankruptcy Code (IBC) with Cost effective and smart irrigation management system, connected gram panchayats, better education system and mobile health services, I think that if these scheme really get implemented masses will benefit.

Ajay Data, CEO, DATA Infosys