Farmer Sutra: Jaitley focuses on the rural sector
Context
Agriculture and health concerns of the poor addressed in the budget but the rest of the people have been left out
MSP increased
The government has decided to offer a minimum support price (MSP) of at least 1.5 times the expenses borne by farmers for all crops.
Middle class left high and dry
Despite some token measures to boost new jobs such as footing part of the bill for new employees’ provident fund (PF) contributions for three years, little respite was offered for the salaried class.
Education cess raised
- But any gain in take-home salaries has been virtually offset by raising the 3% education cess.
- Now, a 4% education and healthcare cess will apply.
No respite on indirect tax front
- Hiking of custom duties: The government hiked Customs duties on a range of products, including mobile phones, wearable devices, television display panels, furniture, diamonds, footwear, cosmetics and dental floss.
- Why?: The idea is to push global producers to start making these goods in India but till that happens, consumers will need to foot higher costs.
- Rationalization of the high Excise duties on petrol and diesel
- A much-anticipated rationalisation of the high Excise duties on petrol and diesel was carried out with an eight rupee reduction in these duties, but consumers would get no relief as a new road and infrastructure cess of ₹8 a litre has been levied to fund infrastructure projects
