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Budget expectations: Wish list for Mr Modi

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Last Updated : Feb 09 2016 | 10:01 PM IST
Prime Minister Narendra Modi has sought ideas from the public for the Union Budget 2016-17. He is of the opinion that Budget consultations should not be restricted to round-table meetings with industrial houses, economic experts or academicians. He says there is a need to change this structure of engagement so that the Budget-making exercise becomes more 'social-friendly', by considering the views of ordinary citizens. Business Standard invited suggestions from its readers and received an overwhelming response, with suggestions ranging from easing the burden on start-ups and more measures to incentivise agriculture to simplifying the tax structure for the salaried class.

Following is a sample of the hundreds of responses we received from our readers for the Prime Minister, as he brainstorms with his officials and ministers on the Union Budget.

STRENGTHEN AGRICULTURE & ENCOURAGE INVESTMENT IN INFRASTRUCTURE

SAPTHARISHI KRISHNAN

The Budget needs to address the needs of farmers and give the agricultural sector top priority. Yields from farming have to be improved to provide for future generations. We need to get better at employment generation; for this, private investment has to be encouraged.


Infrastructure has to improve. The roads, railway and renewable energy sectors should all get high allocation in the Budget. The government needs to plan for five, 10, 20 and 40 years and take into account the funds required to realise these plans. Gross domestic product growth has to touch eight per cent and move towards nine to 10 per cent in the next 10 years. We need to enact the goods and services tax at the earliest at a rate not more than 18 per cent.

The health sector should be given a substantial allocation in the Budget and students encouraged to study medicine. To this effect, the cost of pursuing medical studies should be moderated.

Social security for the elderly has to be ensured and a pension scheme implemented for all employed people, including the self-employed and those working in the unorganised sector.

Housing for all has to be ensured and home loan rates should be brought down to six to seven per cent.

GIVE RELIEF TO THE SALARIED CLASS

ANKIT SHAH

Increase the PPF salary exemption from Rs 1.5 lakh to Rs 1.9 lakh. Raise the Section 80C exemption from Rs 2 lakh to Rs 3 lakh. Reduce service tax by two per cent. Exclude hospitals and educational institutes from the ambit of service tax. Set up an independent authority along the lines of the Telecom Regulatory Authority of India or the Insurance Regulatory and Development Authority to monitor charges at private hospitals.

PUSH FOR A CASHLESS ECONOMY TO REIN IN GRAFT

PANKAJ

Reduce the rampant practice of selling goods without bills by hardware, jewellery and furniture shops. Absence of bills reduces the amount of tax collected and puts more burden on the salaried class to cover the deficit in tax collected.

Exemption on medical expenses and the quantum of transport allowance have remained constant for years. This needs to be revised taking into account inflation. The salaried class pays TDS on income and also service tax and value-added tax on subsequent transactions, services and eating out at restaurants etc. The net tax paid comes to a significant amount. This should be rationalised.

We need to push for a cashless economy. This will help reduce corruption and black money, enhance domestic consumption and bring other benefits.

SENIOR CITIZENS NEED MORE SUPPORT

Please increase the standard deduction limit for senior citizens to at least Rs 5 lakh and lower the tax rate by five per cent, because as people approach old age their health care and home care expenses increase.

Many senior citizens are not pensioners, hence they depend on savings from bank deposits. The returns from these have dropped due to low interest rates. Kindly raise the interest rate by two per cent. Also, allow doctors' fees, operation charges and medicine costs to be eligible for tax deduction, as these are not reimbursed by any medical insurance policy. Please give senior citizens, who are not pensioners, a monthly pension.

(This suggestion came from a senior citizen who did not wish to be identified)

INVEST MORE IN SCIENCE & TECHNOLOGY

NISHANT THAKRAL

Please focus on securing more investments in science and technology. With few options available for higher education in these fields in India, we are lagging behind. Let's select a particular area and try to develop a centre of excellence devoted to that. We would gradually be able to build expertise in more areas. This would allow the youth to pursue their dreams of higher education and improve the country's global image. We could start with a centre of excellence for automobile engineering. India is a major market for automobiles and considering the pace at which the rural population is growing, such a centre of excellence would yield solutions for transportation woes and meet the needs of different sections of society.

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Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper

First Published: Feb 04 2016 | 9:44 PM IST

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