Vijai Mantri, Co-Founder, JRL Money
In my opinion this is a good budget for following reasons:
- Real Estate and autos, though employ large number of people, are sunset industries. How can demand be revived when unsold inventories in top 7 cities is more than Rs. 9 lac crores?
- Last 15 years salary growth has been around 4% and inflation around 6.8%. Consumption was supported by falling household saving and rising household debt. This reached plateau few quarter back and now hitting consumption.
- The real culprit has been huge remittances, foreign travels and import by us. The benefits of our consumption accrued not to India but international enterprises. Trade deficit with china is staggering 60 billion USD. All these have been now taxed or increase in taxes made them more costlier.
- India needs jobs and these steps besides training to teachers and nurses, 5 archaeological sites, impetus to manufacturing of medical devices and various other items will help.
- Insurance companies will recover back and MF will be a preferred option for better tax planning.
- Tax laws modified to tax invisible Indians who were citizens of no country.
- Tax laws for individual has no changes but for lower tax rates there are more complications.
- Preference shares were never a good option by now will be buried.
(Share Manthan, February 02, 2020)