Indian Finance Budget: Post Presentation Phase

 

India’s finance budget was present at the tables of Indian parliament on the first day of February 2025. Prior to the presentation, there was multifarious expectations and elations about the budget. Prelude has already been analysed by me couple of days back. Indian budget, if I don’t misinterpret in any way carries profound impact upon Bangladesh economy. My online readers might wonder what could be the logic behind utterance about Indian Budget upon the economy of Bangladesh. The reason behind it sounds very logical.

During the past six months or so, it is a known fact that about the massive political coup of August 5, 2024, thereby dethroning Sheikh Hasina from the throne of Prime Minister. After that there was a severe political topsy-turvy in that nation. Along with the political stalemate there was a gross mayhem of innocent citizens from diverse fields.

Thereby economic scenarios landed up into utterly dire straits. We are also aware of that her closer and cordial neighbour India courteously supplying huge amounts of essentials from the border areas adjoining North 24 Parganas on regular basis. In the same manner Pakistan and Sri Lanka also receives essential items from India.

Coming to the key areas, this budget heaped up multifarious benefits for the benefits of middle classes of India. It was dearly needed during the past couple of years. Indian economic structure possesses a dominating look by the richer sections of Indian societies. This has badly created widespread anguish among middle classes sections of Indian societies.  In the similar fashion I find that the poor and downtrodden sections are badly retraced back just like the middle class Indians. That is reason the budget of the year 2025 has formulated some key areas which might be beneficial for middle classes as well as poor cum downtrodden sections of our societies. Among all some of the key areas are stated as follow:

Expansion of technical knowhow for India’s sustainable development.

Increase of domestic consumption.
Creations of job opportunities through small and medium enterprises (SME).
Development of agriculture and agricultural production.
Accelerating the pace of growth of export oriented industries.
Development of eco-system for Solar PV batteries.
Manufacturing of motors and controllers.
Manufacturing of electrolysers and wind turbines.
Manufacturing of very high voltage transmission equipment.
Manufacturing of grid scale batteries.

So far this writer has highlighted some of the key features of the budget of the year 2025. More will be highlighted in some subsequent paragraph. Apart from the features aspect I find different IT slabs announced by the honourable finance minister Mrs Nirmala Sitaraman have assumed wide-ranging accolades across the nation.

In India the basic defects of the vast numbers of 145 crores citizens does not have the capacity to pay income tax every year when the citizens submit their IT returns to the finance minister, government of India.   Among them there are some sections of citizens who does not have the capacity to pay IT. Those having the capacity they try by hook and cook to evade paying taxes. In this regard, there are some income tax consultants who play unethical acts by preventing those citizens from paying taxes. Even in concurrence to pay GST, there is a tendency to evade paying the above with the support of personal income tax consultants.

For cognizance of my respected readers let me state the diverse tax slabs of Indian citizens announced by the honourable finance minister, government of India. Thus the different tax slabs which was announced by the finance ministry (government of India), are stated as follow:

Rs 0-Rs 4 lakhs- Nil
Rs 8-Rs 12 lakhs- Nil
Rs 12 -Rs 16 lakh-15%
Rs 16- Rs 20 lakh-20%
Rs 20-Rs 24 lakh-25%

Thus the details of tax slabs announced by the honourable finance minister. Though the announcement is welcomed by the middle class sections of our societies. The moot point which strikes upon our mind is that how the middle classes along with poor cum downtrodden sections will carry on their lifestyle. It is no doubt a massive million dollar question mark upon our mind. India being a vast nation, hence the price levels vary from state to state vis-à-vis nine union territories.

Another biggest discrimination on tax part noticeable in India is that of GST part. In all states GST percentage is more or similar. Whereas in case of all union territories it differently from one to another. To write about GST is not an easy task for this writer from Kolkata, India. This is because GST is applicable in all segments of the economy. But as per the roles played by government of India, I find that there might be severe anomalies involved into it. In some industries the rates are something whereas in some more it is different. Thus the different stages of GST are stated as such, 0%, 5%, 12%, 18% and 28%. The state GST’s are referred to as such SGST which is just the half of it. In all fields of commercial activities GST is included.

About VATS rate in India, it varies from one item to another item. The standard rates are 18% and 12%. The reduced rate is just 5%. To delve more into details, the different types of VATS are Standard Rate, Reduced Rate and Zero Rate. Thus the standard VAT rate is 50%, reduced rate is 5% and zero rate 0%.

In daily essentials like Petrol and Diesel the GST rates are variable. Such as in West Bengal it is something whereas in other parts of India is variable.
In Bangladesh the current GST rates are around 6%. Whereas VAT’s rate is 15%. There might be other slabs but due to non-availability of detailed information I am unable to state about others.

Leaving aside GST and VATs in India, the most worrisome issue is regarding price rise. Similar situation is faced in Bangladesh. In that nation we find that daily earners along with monthly salary earners are the worst affected. Sometimes during festival and wedding seasons we find that the prices of all essential items become terribly skyrocketing. When everything is over, the price levels of some of the essential items slides down to an interesting level. The above details are the vital wings of Indian economy.

I wrote the basics of this year’s budget couple of weeks back. Now the expectations of the vast numbers of citizens are cropping up. I sincerely feel this feeling should be treated as utmost relevance.

Now coming to other vital aspect of Indian economy. It is no doubt that the Indian economy has no doubt improved. But the progress which was supposed to be achieved. Has not been witnessed till date. Richer sections are getting rich, but the plight of poor and downtrodden sections are always feeling severe economic doldrums. This is not at all acceptable. Equality of all should be order of the day in India. There should not be any sort of discrimination richer and the poor. In between middle classes are always getting the beating by the richer classes.

After the presentation of budget on the tables of Indian Parliament. We find that there occurs serious discussions about the deliberation of post budget taking place by the participation of all members of parliament. The common people always opine that in the midst of discussions there might be some plebiscite occurring which might be profitable for the common citizens, whereas to some it might be worrisome of the highest order.

In reality I find that common people though might be financially affluent. In reality we find the situations having improved, but not as per our desired expectations. My only pray that all of us must rise up to the occasion. Middle classes as well as poor cum downtrodden are upgraded in their lifestyle.


Sujayendra Das is a columnist
based in Kolkata, India.