-screen grab from the “What IIMA students wish from the 2016 budget” telecast on CNN IBN on 16th Feb,2016 10 PM
I talked about chinese deflation of yuan, raising anti-dumping taxes. Increase base of taxation by bringing farmers into tax net.
“Sri Harsha Vavilala-PGP1
I spoke about 1) Skill development needed for long-term sustainability 2) Govt unable to decide about MNREGA and what welfare schemes are useful.
Exports haven’t picked up and one of the reason that is given is MAT on SEZs. I have seen it first hand in Jaipur where investments have dried up in SEZs. In 80C and related sections on deductions, I feel the government should look at making deductions progressive in the sense that higher deduction to higher income slabs. Through Modi government, the usual channels of investing black money or flowing money have been reduced but people are not willing to pay as high as 60% penalty, and so they’d rather keep it in their safe. This money should be channelized.
I think the government should implement the universal health coverage scheme. I think the government should stick to the fiscal deficit target. Social spending cut is a step in this direction. This cut can be explained by the fact that the 14th finance commission has increased the allocation to the state government from the central pool from 32% to 42% and moreover the state government will get more that 60% of the taxes collected in the country.
The government must prevent leakages by expediting the initiative it has taken i.e. direct transfer to the beneficiary through Jan Dhan account, leverage the program to create tangible assets such as roads, housing etc. and it must also strengthen the procedures involved. It is important for the government to increase budget allocation on both preventive measures schemes such as sanitation, schemes fighting child malnutrition and also corrective measure schemes such as health care.I would like to government to increase taxes on addictive purchases such as liquor, cigarettes and luxury goods such as High end vehicles.
Service tax can be increased by 2% to fund additional expenditure under OROP and 7th Pay Commission. It will also align it to the imminent GST rate. The disinvestment target was not met because of depressed stock prices as most of the companies were commodity companies. The disinvestment target should be set more realistically this time round to fund the increased infra requirements. Gold Monetization Scheme – Gold bonds should be revised in accordance with the benefits offered by Gold ETFs.
“Raunak Shah-PGP1While one is normally entitled to a tax deduction of up to Rs. 2 lakh on interest paid on a house loan, the deduction available is only Rs. 30,000 if the house has taken more than 3 years to be constructed. Buyers should not be punished for the fault of builders delaying construction of housing projects. Hence, a similar deduction of Rs. 2 lakh should be available even if construction is delayed. The government has done well in cutting down the fuel subsidy bill from Rs. 60,000 crore to Rs. 30,000 crore by leveraging the fall in crude prices and by streamlining beneficiary targeting through the DBT system.
“Gulsar Ahamed A.H.-PGP2
The government should focus on agriculture and rural economy. Specifically the focus should be on sustainable agriculture, comprehensive crop insurance, fiscal incentives for irrigation facilities and cold storage. Technology should be leveraged for growth in the sector.
I talked about tax reforms in REITs, problems of double taxation and need for encouraging investment in infrastructure. Tax structure should be simplified. The budget should bring in a clarity on deductions and GST. Fiscal discipline needs to be aimed at.
Increase in income tax exemption slab, so that government employees especially 4th class can enjoy advantage of increase salary because of 7th pay commission roll out. I am expecting the formation of an Infrastructure regulatory authority. I am expecting Finance minster to give some policy inclination on how they are planning to tackle this problem of base erosion and profit shifting. There should be an increase of spending in cyber security, besides defense expenditure and allocation to Bharatnet. I expect no cut in social welfare related schemes. For skilling people we need primary education as Prime focus. So it should be done via centrally sponsored schemes. Higher-level skill development should be provided either in PPP mode or by government agencies like NSDC.
“Sourav Mundhra-PGP1There is a need for reduction of MAT as it negates the benefit of exemptions for promoting industry. There is also a need for defence-specific measures such as SEZ policies, tax rebates etc. and to not let capital acquisition component of the defence budget to fall due to increase in revenue expenditure. In conclusion, consistency and continuity on the path laid down in the previous budget is a must.