Is this Budget for Middle-Class People?

OutlookIndia

In the second of our special #Budget2019 edition of #OutlookMoney, we are answering whether this budget is for Middle-class people with Editor of Outlook Money, Arindam Mukherjee.   #BudgetInterview #Money #OutlookMoney #OutlookMagazine #OutlookGroup

Transcript

00:00 The maiden budget under Modi 2.0 government is out.

00:03 And with this, Nirmala Sitharaman has put an end to all the speculations floating all around.

00:08 In two hours of the speech, Nirmala Sitharaman has touched upon every aspect of economy,

00:13 from banking to non-banking financial companies and from disinvestment to market reforms.

00:18 So to talk about the budget aspects and different aspects of its implementation

00:22 and its interpretation, we have a very special guest with us,

00:25 Mr. Arundhath Mukherjee, who is editor of Outlook Money.

00:29 So my first question I would like to ask you is,

00:32 as the first budget under Modi 2.0 government is out,

00:35 so how do you see this budget from the perspective of middle-class people

00:40 and middle-income group people?

00:41 See, there was a lot of expectation that after so many years of not touching the middle class

00:47 at all, the Modi government in its second innings will do something for the middle class.

00:52 Now, but unfortunately, nothing much has been done for the middle class in this

00:57 because if you look at the provisions, the middle class has been very systematically

01:02 been left out of this entire equation of the budget, 19, 20, 19, 20, 20.

01:08 So first, the biggest expectation is of the middle class is lowering of the income tax rates

01:15 or increasing the threshold of the income tax exemption limit.

01:19 Now, there was a general expectation that the threshold limit will be

01:22 increased from 2.5 lakhs to 3 lakhs.

01:25 Now, that didn't happen.

01:26 The only personal income tax provision that the finance minister made in this budget

01:33 is a reiteration of the provision of the proposal that was given in the interim budget that is

01:39 exempting or giving a rebate to people earning up to rupees 5 lakh of income per year.

01:44 Now, only that has been reiterated.

01:47 Nothing else has been touched as far as personal income taxes are concerned.

01:51 So, summing up all these things, do you think that this budget has lived up to the expectation

01:56 of the people?

01:57 No, absolutely not.

01:58 Because see, not only has there not been anything on the personal income tax front,

02:02 the increase of one rupee on additional exercise duty and sales for petrol and diesel will

02:10 actually cost the middle class dearly because it affects the family budget when fuel prices go up.

02:15 Plus, every time fuel prices go up, there's a cascading effect on the economy and prices

02:21 across the board and so there will be inflation as a result of this fuel price increase.

02:26 So, that is going to affect the pockets of the middle class very dearly.

02:30 Plus, there is an obsession of the Indian middle class towards gold.

02:34 Now, the government has increased the import duty on gold from 10% to 12.5%.

02:38 Now, India is one of the largest importers of gold and every household wants to buy gold

02:45 for prosperity.

02:47 So, now if the gold prices go up, that is going to affect people again very badly.

02:52 So, from all sides, the middle class is going to be squeezed.

02:55 So, what's your biggest takeaway from this budget?

02:59 I don't know.

03:00 The finance minister started by saying that we are going to look at the new India.

03:05 But clearly, the middle class is not part of the new India that she envisages.

03:09 She's looking at the big picture of taking India to a 5 trillion economy.

03:13 But if it doesn't go with taking its people along with it, I don't know how it's going to work.

03:17 Thank you, sir.

03:18 Thanks a lot.

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