Best printers for Home

Best Mixer Grinder

Best wired Earphones

Best 43 Inch TV in India

Best Wi Fi Routers

Best Home Theatre in India

Smart Watch under 5000

Best Laptops for Education

Best Laptop for Students

The Union <keyword id="6147670" type="UNKNOWN" weightage="20" keywordseo="budget-2019">budget 2019</keyword>, which will be an interim one, has triggered a lot of expectations among the common people. Looking back at the past five budgets by the Finance Minister Arun Jaitley, we find a lot of changes in the salary structures and the annual tax outgo. For instance, the 2014 budget raised the personal income tax exemption limit from ₹2 lakh to ₹ 2.5 lakh. Also there was an increase in the investment limit under Section 80C after a decade by ₹ 50,000. The next two budgets that followed increased the tax outgo of super wealthy individuals. In 2017, income tax rate was halved for the ₹2.5 – ₹5 lakh slab. The last budget brought the standard deduction once more. Tax sops still top the wish list of any common man, and the government is expected to give in this time to woo voters. According to Anirudha Taparia, IIFL Wealth Management’s Executive Director, while the government will stick to prudence, the balance will tilt in favor of populist measures designed to assuage restless voters who are currently sitting on the fence. What the common man could expect from budget 2019 There are strong hopes the individual taxpayer’s income tax exemption limit will be lifted from ₹2.5 lakhs to ₹5 Lakhs. There are strong demands to lift up the maximum deduction limit under Section 80C. Talking on this, Founder and CEO of Cleartax Archit Gupta <a href="https://www.businesstoday.in/budget-2019/news/how-budget-2019-is-likely-to-benefit-individual-taxpayers/story/310441.html">writes</a>, "The government must consider revising this limit, the revision must at least accommodate for inflation. Perhaps raising to ₹2 lakh from the present ₹1.5 lakh would be impactful. Any such hikes will help individual taxpayers to invest in various tax saving avenues available under 80C and save on taxes." Additionally, there is demand from industry chambers that the tax slabs will need some tinkering. As part of its pre-budget recommendations, the CII pressed for bringing down the highest personal income tax slab from the present 30% to 25%. FICCI has wished for a revision in the tax slab for the taxpayers suggesting that the 30% rate will be applied only for those making an income beyond ₹20 lakh per year. Another issue in the past was standard deduction limit. Though the government had announced a standard deduction of ₹40,000, the salaried tax payers could not be happy as the transport allowances and medical treatments were scrapped. Hence some experts want it to be increased to ₹75,000. There could also be some real estate sops in the form increase in the exemption limit for interest and principal on housing loans which would be in addition to the exemption given under 80C for principal repayment. Recently, the New Pension Scheme (NPS), also called as the National Pension Scheme, was tweaked to bring an increase in the center’s contribution to the corpus fund to 14% from the present 10% and tax exemptions on withdrawals up to 60%. Once passed, the Finance Act 2019 will see them taking effect.

India’s interim budget and the expectations from the ‘common man’

The <keyword id="6358021" type="PERSON" weightage="60" keywordseo="budget">Budget</keyword> is just around the corner, and as always, there’s a flurry of expectations and speculations about what it has in store. A recent survey by <keyword id="6358918" type="PERSON" weightage="60" keywordseo="Deloitte">Deloitte</keyword> offers some interesting insights into what people want from this year’s Budget. 
 
1. Exemption for time deposits 
Should the Section 80TTA deduction, currently applicable to interest from saving bank accounts, be extended to interest on time deposits? 
Yes: 74% 
No: 26% 
 
2. Paying tax on deemed rent 
Individuals who own residential properties, aside from their self-occupied home, have to pay tax on notional/deemed rent from the additional property. This means they have to pay tax on income they have not received. Should this be done away with? 
Yes: 69% 
No: 31% 
 
3. <keyword id="113625" type="UNKNOWN" weightage="20" keywordseo="leave-travel-allowance">Leave travel allowance</keyword> 
Should the leave travel allowances exemption be extended to international travel, and be allowed for one journey per year? 
Yes: 76% 
No: 24% 
 
4. Applicability of advance tax 
Advance tax is applicable if the estimated tax payable exceeds Rs 10,000. How much should this limit be raised to? 
9% Rs 40,000 
35% Rs 20,000 
20% Rs 30,000 
36% Rs 50,000 
 
5. Deduction for infrastructure bonds 
If the deduction for investment in long term infrastructure bonds is reintroduced, what should the limit be? 
47% Rs 75,000 
53% Rs 50,000 
 
(Source: Deloitte Pre-Budget Expectations Survey Report, 2017.)

What does the Common Man want in Budget 2017?

Commoners' understanding and expectations are often very different from a purely economic and strategic understanding of the budget. For many people, the budgetary exercise means some things getting more expensive and some getting relatively cheaper. 
 
However, the budget is not just about making some goods and services expensive and cheaper, but is a tightrope exercise of the government where it tries to match national priorities with the available resources in hand. The future expectations of resources (namely in the form of revenues to the government) and usage of these resources for different purposes (likely expectations of expenditure) is done in the budget. 
 The <keyword id="6355261" type="POSITION" weightage="20" keywordseo="Finance-minister">Finance Minister</keyword> and his team's task is a difficult one at present, especially after the six bimonthly review by the RBI on 2nd Feb clearly mentioned its expectation from the budget. The RBI stated that it expected the government to stay on the path of fiscal consolidation and expected to go ahead with structural reforms that will help the economy come on a sounder footing. This comes after the NCAER lecture of RBI central bank Governor alluding to the pitfalls of the fiscal profligacy which can lead to catastrophic results including <keyword id="101998" type="UNKNOWN" weightage="20" keywordseo="high-inflation">high inflation</keyword>, capital outflows and loss of value of the currency. He talked about the recent example of Brazil to drive home the point that fiscal profligacy can end up leading to a greater trouble than the expected gains of such profligate steps. 
 On the side of the common people are concerns like <keyword id="6354751" type="COMPANY" weightage="20" keywordseo="Income-Tax">income tax</keyword> rates, tax deductions and a host of things about what will get relatively cheap and what will get relatively expensive. While it is too early to comment on the specifics of the budget, a welcome thing for people would be if the government accepts some of the recommendations of the Justice Easwar committee especially the concerns which pertain to the procedural aspects. 
 Earlier this year Justice Easwar Committee had put forth several measures that could be seen to be beneficial to the ordinary people. The committee was formed to into looking into the <keyword id="45697" type="COMPANY" weightage="20" keywordseo="Direct-Tax">direct tax</keyword> laws especially the Income Tax of 1961, of the country and simplify them for various stakeholders including individuals, small businesses and companies. The other purpose was to reduce unnecessary litigation. The ten member panel's draft report had made 27 suggestions under the IT Act and eight for reform through administrative instructions. The committee among other things had recommended 'enhancement and rationalisation of the threshold limits and reduction of the rates of TDS. TDS rates for individuals and HUFs to be reduced to 5 percent as against the present 10 percent', the report had stated. 
 
Another important suggestion is the proposed deletion of the clause that allows the tax department to delay the refund due for a taxpayer beyond six months and suggests a higher rate for delays in refunds. 
 Apart from this, another major recommendation was the treatment of stock trading gains up to 5 lakh to be treated as capital gains rather than business income, a move that could see more <keyword id="6362476" type="ORGANIZATION" weightage="20" keywordseo="investments">investments</keyword> in the stock market from the side of the retail investors. 
 
These procedural aspects apart from the change in the personal income brackets could help the common people benefit from the budget. On the indirect tax side much is not clear as the Government has had a deadlock with opposition on GST. This budget could be an important one from the viewpoint of tax laws in the country, both direct and indirect. 
 
(The article is co-authored with Sankalp Sharma, Senior Researcher at the Institute for Competitiveness, India. Amit Kapoor is Chair, Institute for Competitiveness &amp; Editor of Thinkers. The views expressed are personal. Amit can be reached at <a href="mailto:amit.kapoor@competitiveness.in">amit.kapoor@competitiveness.in</a> and tweets @kautiliya)

Budget 2016 may or may not meet expectations of the common man

Patna, Feb 1 () Terming the Union Budget "directionless", the opposition RJD-led mahagathbandhan in Bihar alleged on Saturday that it did not have any words on special package for the state or for the common man. 
Leader of Opposition in the Bihar Legislative Assembly and RJD leader Tejashwi Yadav termed the Centre's budget "directionless" and alleged that it did not mention a word on providing employment opportunities to youths and thus will bring recession.
"The #Budget2020 proves that government is clueless on revenue and employment generation, wealth creation &amp; it's distribution!," Yadav asserted.
"In this budget there are no words on special package, no new initiatives or projects for Bihar. We anticipated a lot for our state since there is a double engine government at helms. This #Budget2020 is a reflection of discriminatory intent of the Modi government towards Bihar," Yadav said in a release.
The Union Budget, presented in Lok Sabha by Finance Minister Nirmala Sitharaman, will reduce spending power of the common man and will increase disparity, he said, adding that subsidies are getting reduced. 
Farmers and the common man are equally unhappy with the budget, the RJD's heir apparent alleged.
"The central government is selling other public sector undertakings on the lines of BSNL, Air India to its favourite capitalists at throwaway prices just to make money for election expenditure," Yadav alleged.
Former Bihar chief minister Rabri Devi also termed the Union Budget "directionless", anti-poor and anti-youth and alleged that it will not be beneficial for anyone except the capitalists.
Former Bihar chief minister and Hindustani Awam Morcha (Secular) president Jitan Ram Manjhi described the Union Budget 2020-21 as a "routine" but "disappointing, visionless and directionless" and said it has not talked about anything concrete to deal with the problems of unemployment, price rise and poverty.
"There is nothing in the budget for poor people...It has not said anything for providing common education for all...It has neither talked anything concrete to deal with the problems of unemployment, price rise nor took any measure to eradicate poverty," Manjhi said.
Former union minister Upendra Kushwaha also criticised the Union Budget 2020-21, saying it is meant for rich people, middlemen and corporate houses.
"#Budget2020 is meant for rich people, middlemen and corporate houses. Problems of unemployment, poverty and hunger will aggravate further with the sale of government undertakings and privatisation. The issues of providing quality education, healthcare facilities at ground level and improving the farmers' lot have not found mention in the budget," he tweeted.
The budget has disappointed the people of Bihar as it does not contain anything for the state which its people were expecting from the NDA's double engine government, Kushwaha alleged. 
The BJP, which is the alliance partner of the JD(U) along with the LJP in Bihar's NDA, defended the budget saying the opposition parties are unnecessarily making hue and cry over it and they should take tuition from Deputy Chief Minister Sushil Kumar Modi to understand it.
"They (opposition parties) need to understand the whole budget on a positive note rather than propagating a cynical approach," Bihar BJP spokesperson Nikhil Anand said.
 "I would request opposition leaders in Bihar to find out time and take tuition from Deputy CM Sushil Modi ji, who is holding the charge of finance minister, to understand the economics of the state which has registered 13.2 GDP to remove the Bimaru tag," he added. AR KJ
KJ

Union Budget contains nothing for Bihar, common man: Tejashwi

It’s the payback time. The common man who bet all he had on a single horse last year, accepted a rather hurried budget that was presented by the ‘fresh’ government last time. This time around, the expectations have risen and clearly so. The ‘aam junta’ of India is now seeking return favours, and the big question is: how ready is the government to meet the aspirations of common man without inviting any retribution? 
 Last year’s budget had reasons to cheer, though the expectations were that the government would deliver a somewhat flowery budget for the general public. Women’s safety was being talked about, senior citizens were being referred to; and most importantly, on personal tax front, individual tax payers had a lot to raise a toast for themselves. Reference to <keyword id="44528" type="ORGANIZATION" weightage="20" keywordseo="FDI">FDI</keyword> in defence was met with partial criticism, but that settled down a little later. 
 
To increase the level of savings, the investment limit under Sec 80C was hiked, encouraging citizens to pool in their resources that would in turn help the government meet its fiscal needs to arrive at the infrastructure investment. 
 
The euphoria that gripped the entire nation during 2014 Lok Sabha elections is very much alive, even to the dismay of those who had expected a cryptic reaction to last year’s hurried budget. 
 
Having rested their hopes on the Modi regime that’s a few months old by now, people are expecting this time the government will address their needs and aspirations. There is also high expectation on policy level changes that have been counterproductive to investments, savings and increased red tapism, which is hindering the growth of industries. A significant change is expected from the government’s side to make the common man’s life better than before. 
 
In the last few months, the government has adopted several measures to correct the policy logjam to speed up reforms on both FDI and structural front. This has resulted in increased participation from private parties, with progressive rejuvenation of investors’ confidence on Indian equities. 
 But, mind you, the common man wouldn’t care about the details, though the devil lies in it. The man on the street isn’t bothered about the fine print. All he wants to know is whether he will be paying more taxes than before, and if they would be reduced this year, and what kind of investments can he make to protect his family from losing money. Of course, the property rates are a concern too, and so is the price of essential commodities with <keyword id="22195" type="COMPANY" weightage="20" keywordseo="Inflation">inflation</keyword> refusing to settle down. Things like <keyword id="35050" type="CITY" weightage="20" keywordseo="gdp">GDP</keyword> and black money can wait while the ‘aam janta’ understands if rice and dal would cost the same or less, and if the vegetables will turn predictable with their prices. 
 
Last year, and this year too it has been a lucky ride for the government which has reduced petrol and diesel prices. Thank stars that the international oil prices have come down and this is a universal phenomenon. 
 
What’s pinching the middle class is the stagnant price of products. Their price is not reduced because manufacturing costs have remained stable at a high, and have not come down since last year. 
 
Now, when domestic savings rate has been on a regressive fall, it will really hurt the middle class unless the government finds a way of addressing it through the budget. Because, unless the country’s savings rate goes up, it could boost the GDP growth at the best. The government should aim at restoring domestic savings, after having encouraged the common man to pool in his money under various savings headers, through tax incentives. 
 The common expectation of salaried class now is the hike in <keyword id="6354751" type="COMPANY" weightage="20" keywordseo="Income-Tax">income tax</keyword> exemption to Rs 3 lakh from Rs 2.5 lakh. This will inturn favour the government by attracting more savings. 
 With every passing year, working women’s participation in country’s <keyword id="34412" type="ORGANIZATION" weightage="20" keywordseo="economy">economy</keyword> is increasing. As an incentive, raising the IT exemption to Rs 4 lakh would again be a productive measure adopted by the government, attracting huge savings from this class. 
 
Addressing senior citizens’ pension funds and extension of health insurance plans to ensure better returns will put the government on good stead. 
 
Image: PIB

Will Modi’s Budget Address Common Man’s Dreams?

Budgets are critical to any Nation. It dictates how a country would progress financially over the next financial year. It has a huge impact on the lives of the common man. India is no exception. All Budgets are important, but some stand out because of the ground-breaking work they did. 
 Ahead of <keyword id="6354477" type="PERSON" weightage="60" keywordseo="Narendra-Modi">Narendra Modi</keyword>'s <keyword id="6360189" type="COMPANY" weightage="80" keywordseo="Union-Budget">Union Budget</keyword> 2016, we at Business Insider have compiled the most iconic Budgets in the history of the Indian <keyword id="34412" type="ORGANIZATION" weightage="100" keywordseo="economy">economy</keyword>. 
 
Image credit: Wikipedia

WATCH: Budgets that Changed the Indian Economy Forever

I look at the budget purely from the lens of Consumption. To me consumption equals to development and from that point of view this budget is a mixed bag of announcements for me. I believe the government’s intention was quite positive but it had to walk on a tightrope, juggling between social and economic reforms at the same time. 
 
I saw various measures in this budget that would help the consumption and in turn the development. Announcements like increasing the limit of deduction for health insurance premium and increase in the deduction for rent paid for people living in the rented houses is going to increase the monthly disposable income. Not only this, I am glad that the Service Tax slabs remained unchanged as it would have added pressure on the services industry and spending of the common man. 
 
Announcements about the steps to simplify taxation and curtailing Black Money in the system, is also something I feel positive about. Especially the efforts that the government has taken to increase the transparency in the taxation system will go a long way in creating a positive outlook that the taxpayers have for taxation. 
 
The announcements also showed government’s focus in strengthening the rural economy. Various measures taken to ensure the security of farmers, doubling their income and providing employment to rural youth will further expand the consumption net and have long-term positive impact. 
 
Allowing 100% FDI through FIPB for the marketing of food products produced and manufactured in India is a welcome step and it would encourage investment in food business in India. 
 
While I see quite a few positives in this budget, I see one announcement that can prove to be a dampener. Making PAN mandatory for any purchases above one lakh rupees is going to have a serious impact on consumption. Not more than 13 percent of Indians have PAN card and only about 4 percent of them pay <a href="http://www.businessinsider.in/searchresult.cms?query=Income+Tax">Income Tax</a>. Without expanding the PAN and <a href="http://www.businessinsider.in/searchresult.cms?query=Income+Tax">Income Tax </a>net, a move like this will enormously hamper the consumption space. I expect its significant impact on retailing as well as on manufacturing, especially of <a href="http://www.businessinsider.in/searchresult.cms?query=Consumer+Durable">Consumer Durable</a> products like televisions, gadgets, furniture and other home products. 
 
I believe it is a positive change but we should give ore time to our society to adopt these changes. 
 
Overall I see this budget as a mixed bag of multiple things with a common direction. 
 
(This article is authored by Kishore Biyani, Founder-CEO, Future Group) 
 
Image credit: Indiatimes

Budget of Small Things

<ul><li>Finance Minister of India Nirmala Sitharaman presented the Union Budget on February 1, 2022.</li><li>Struggling with high inflation and tepid rural demand, FMCG companies were hopeful for some positive news, steps and reforms that would help boost consumption in the economy.</li><li>However, with no changes in personal tax, there isn’t for hope for a drastic change in consumption and demand.</li><li>At the same time, there are enough subsidies to support the rural areas of the country.</li><li>Here’s what leading FMCG companies have to say about the Union Budget 2022-2023.</li></ul>The Union Finance and Corporate Affairs Minister Nirmala Sitaraman presented the Union Budget for 2022-2023 on February 01, 2022. The government announced that 5% of the annual collections under the Universal Service Obligation Fund will be allocated to improve broadband and mobile service penetration in rural India. This move will allow Fast Moving Consumer Goods (FMCG) brands and all businesses to cast their net a little wider in rural areas via mobile services. The government’s plan to expand the National Highway network by 25,000 KM, the Gati Shakti plan to strengthen seven engines of infrastructure, the launch of 100 new cargo terminals, will further open up new roads for brands and improve logistics efficiency. It will also create new job opportunities in rural areas, improving consumption and demand. The finance minister also mentioned that the government intends to pay ₹2.7 lakh crore worth of minimum support price (MSP) direct payments to wheat and paddy farmers. The government is also looking to deploy drones for agriculture monitoring, crop assessment, digitisation of land records and spraying of insect pesticides. These initiatives will help boost rural incomes and aid the growth of FMCG companies. The Union Budget aims to facilitate ease of doing business and give a push to consumption by providing employment opportunities, improving infrastructure, focusing on technological advancement and accessibility. Here’s how these subsidies for rural India will pave the way for FMCG growth: Mayank Shah, Senior Category Head, Parle Products: First of all, putting money in the hands of consumers really helps, so they go out and buy products. So that was more on the front of ensuring that the demand remained robust given that we have gone through two years of pandemic. That was something that industry expected, either by tax cut, or by increasing the slabs tax brackets or by probably increasing the standard deduction limit. Those were the things that we expected but not much has been done there. However, on the second front of job creation, the government has done a lot. The budget talks about seven engines driven by PM GatiShakti that will definitely boost employment and increase the number of jobs. The budget also talked about 60 new jobs to be created in the next five years. That is relatively a longer process compared to the first expectation which was putting money in the hands of consumers, which would have yielded immediate results. A 20,000 crore boost in transportation infrastructure will definitely help in terms of job creation going forward. Another thing the government would have ensured on the rural front was increased allocation to MGNREGA or direct benefit transfer. In Fact they chose the other way. In terms of rural demand, when you're talking about putting money in the hands of rural consumers by increased MSP and increased MSP allocation, it is also going to have an impact on the inflation because if you increase the MSP, that eventually is going to increase the cost of agri products, primary inputs in food processing. So procurement is going to be increased. The current challenge ahead of most FMCG companies, which is managing inflation, probably would be aggravated, so I consider it to be neutral. Probably placing this money in the hands of consumers through MGNREGA or DBT would have ensured demand to remain robust. Ahmed ElSheikh, President, PepsiCo India: Reviving economic growth, increasing consumption, and fostering investment to fuel post-pandemic growth have been key objectives for the government, and the <keyword id="12134566" type="General" weightage="20" keywordseo="union-budget-2022" source="Orion">Union Budget 2022</keyword> reflects this very intent. This year's Union Budget lays forth a vision for India at 100 years. The Government is leading from the front by raising public sector spending to keep the economic recovery on track. Digitization combined with infrastructural creation will accelerate economic development, stimulate innovation and entrepreneurship enhance living standards while keeping sustainability at its core. The increased outlay for PM Gati Shakti projects for multi-modal connectivity including 100 new railways logistics hubs coupled with steps like enhancing local oilseed production, extending the last date for starting production for new manufacturing units, encouraging alternate cropping will aid growth of the FMCG sector and further strengthen Govt’s vision of an Atmanirbhar Bharat. Saugata Gupta, MD and CEO, Marico Limited: With this Union Budget, the government has laid out a growth oriented, future focused blueprint for India. By prioritising job creation, infrastructure growth and strengthening digital capabilities while making ‘inclusive development’ and ‘financing of investments’ two of the key focal points of the Budget, the government is successfully laying the groundwork for faster financial inclusion and expansion of the credit ecosystem. It has undertaken some key initiatives targeted towards credit growth, farmer welfare, improving the health and education infrastructure, digital currencies and start-ups which will benefit young aspirational Indians. If executed well, the budget will trigger the virtuous cycle of economic growth and employment creation, leading to momentum in growth. I believe that the budget has several inclusive measures and policies that balance consumer needs with industry requirements. It encapsulates the spirit of an Atmanirbhar Bharat and takes strong steps towards fulfilling that vision. Venkatesh Vijaraghavan, Director &amp; CEO - FMCG, CavinKare: We welcome the futuristic, investment-led, growth-oriented Budget with a strong impetus to infrastructure and capability building, which would boost GDP, Atmanirbartha, economic stability and job creation, thereby reaping demographic dividend. Ghanshyam Khandelwal, Chairman, BL Agro: The budget was as expected. We didn't anticipate the industry to take centre stage because several schemes for the FMCG sector have already been implemented in recent years. However, the mention of a rationalised strategy to improve domestic oilseed production and minimise reliance on imports was welcomed. A more promising statement was the package that centers on farmers adopting appropriate fruits and vegetables, as well as proper harvesting practices. The move will go a long way towards uplifting the food processing sector. Harsha V. Agarwal, Director, Emami: A very forward-looking budget with focus on capital expenditure which should drive growth. The ease of business in India has also been prioritised. So over all the budget pulls no surprises and focuses on growth of the Indian economy. Amrinder Singh, Director, Bonn Group of Industries: As the social security benefit of state and central government employees has been enhanced in this Union budget 2022, we are expecting that it will spur the consumption. The government has put money in consumer’s hands and ensured that the demand is not getting affected by increasing the tax deduction limit by 14 percent of the state government employees. Vikram Agarwal, Managing Director, Cornitos: The Union Budget 2022-23 is a progressive budget, our Government is concentrating on infrastructure, employment generation, and future developments. This appears to be a growth-oriented budget as efforts are being made to reduce compliance burdens and improve ease of doing business. The Budget has given an extension of the ECLGS Scheme which would provide much-needed help to the MSME sector especially the hospitality and related food processing segments. The past few years have been tumultuous for the hospitality segment and I am hopeful that this initiative gives the industry a much-needed boost.

Union Budget 2022-2023: Here’s how FMCG brands reacted to the budget

New Delhi, Jan 19 () In its effort to demystify the budget for common man, the Finance Ministry will start a social media campaign from January 22.
 Through the '#ArthShastri' campaign, the ministry would explain several economic terms through interesting animated videos to help common man and students understand budget exercise in a simple way, an official said.
 The ministry also undertook this exercise before the Budget last year as well, the official added.
 "Curious student Arth unpacks his box of questions in Prof. Shastri's class. Let's see how Dr. Shastri tackles his difficult questions with her sharp insight. Tune into this space to join the classes starting 22nd January @ 11am. #ArthShastri," pinned tweet of the ministry said.
 The ministry has also launched another campaign on Budget promises and delivery with tag '#HamaraBharosa'.
 This campaign on promises and delivery, which has also been launched in 12 major regional languages, started with the health sector, unmanned level crossing and Housing for All.
 Under the series, the Finance Ministry on Sunday issue details on National Infrastructure Pipeline on its twitter handle.
Both campaigns will continue till January 29, the official said.
The Budget for 2020-21 are expected to be presented on February 1. DP PRS MR
MR

Finmin to launch social media campaign on budgetary terms

The unprecedented rise in India’s <keyword id="143728" type="General" weightage="20" keywordseo="inflation-rate" source="Orion">inflation rate</keyword> has put an added strain on the <keyword id="6390778" type="General" weightage="20" keywordseo="Common-man" source="Orion">common man</keyword>’s pockets. Driven by rising food and fuel prices, <a href="https://www.businessinsider.in/finance/news/indias-wholesale-inflation-rises-further-to-15-08-in-april-from-14-55-a-month-ago/articleshow/91614591.cms">retail </a><keyword id="22195" type="General" weightage="20" keywordseo="inflation" source="Orion">inflation</keyword> soared to an eight-year high of 7.79% and the <a href="https://www.businessinsider.in/finance/news/indias-wholesale-inflation-rises-further-to-15-08-in-april-from-14-55-a-month-ago/articleshow/91614591.cms">Whole Price Index</a> (WPI) rose to 15.08% in April. Additionally, India’s rural inflation in the food basket was 8.38%, higher than urban inflation at 7.09%. <div type="image" title="Retail inflation soared to 7.79% in April" msid="91672724" hostid="261" caption="&amp;lt;p&amp;gt;Retail inflation soared to 7.79% in April&amp;lt;/p&amp;gt;"></div> High inflation also means the rupee is losing its power. In our <a href="https://www.businessinsider.in/finance/news/rupee-continues-to-fall-to-record-lows-and-it-might-affect-your-food-education-healthcare-and-other-expenses/articleshow/91535452.cms">previous newsletter</a>, we discussed how the Indian currency’s decline impacts your food, education, healthcare and other expenses. In today’s extension of the last newsletter, we will take a look at how inflation is putting more pressure on the common man’s pockets. What is inflation and what does it mean for the common man? Simply put, inflation is when there’s a rise in the prices of essential goods and services such as food, clothing, housing, transport, etc. So, everything gets expensive. In India, generally, two kinds of indices are used to measure inflation— Whole Price Index (WPI) and Consumer Price Index (<keyword id="6355865" type="General" weightage="20" keywordseo="CPI" source="Orion">CPI</keyword>). <div type="image" title="All India inflation rates based on CPI and food price index" msid="91672757" hostid="261" caption="&amp;lt;p&amp;gt;All India inflation rates based on CPI and food price index&amp;lt;/p&amp;gt;"></div> The situation is so alarming that India’s central bank, the Reserve Bank of India (RBI), has shifted its <a href="https://theprint.in/economy/in-sequence-of-priorities-now-rbi-shifts-focus-to-inflation-over-growth-das/908245/#:~:text=Search-,In%20sequence%20of%20priorities%20now%2C%20RBI%20shifts,to%20inflation%20over%20growth%3A%20Das&amp;text=Mumbai%2C%20Apr%208%20(PTI),Shaktikanta%20Das%20said%20on%20Friday.">focus </a>from pushing growth to mitigating the ripple effects caused by inflation. Over the past 3 months, retail inflation numbers have remained above the RBI’s upper tolerance limit of 6%. The last time inflation was below 4% was before the global pandemic in 2019. Due to the soaring inflation, consumers are losing purchasing power, which is a measure of how many goods or services you can buy with a unit of currency, at a faster-than-usual rate. If you could buy one liter of cow milk for ₹45 a few months ago and now you can only buy it for ₹50, the value of your money has reduced. And India’s common consumers are among the worst sufferers of this inflation, as they are struggling to manage their daily expenses with limited purchasing power on a minimum wage. Reason behind this price rise and its ripple effects The high rate of inflation in April was primarily due to the rise in prices of mineral oils, basic metals, crude petroleum and natural gas, food articles, non-food articles, food products and chemicals and chemical products than the last year. <div type="image" title="Rise in price of basic items" msid="91672795" hostid="261" caption="&amp;lt;p&amp;gt;Rise in price of basic items&amp;lt;/p&amp;gt;"></div> While the country was still healing through the after-effects of COVID-19, the war in Ukraine has significantly increased the common man’s woes. The war has caused a disruption in the global supply chain and pushed the prices of crude oil and other commodities. <a href="https://www.businessinsider.in/finance/news/snacks-health-bills-electricity-bills-and-more-will-add-to-your-chunkier-home-loan-emis/articleshow/91429752.cms">Higher fuel prices</a> add to the transport costs, putting an extra <keyword id="6370923" type="General" weightage="20" keywordseo="Burden" source="Orion">burden</keyword> on daily food commodities as well as essential non-edible products. Due to the export ban by <a href="https://www.businessinsider.co.za/the-impact-of-indonesias-palm-oil-export-ban-on-south-africa-2022-5">Indonesia</a>, switching from a rather expensive Sunflower oil to palm oil would not make much of a difference, too. This hike in fuel, oil and travel has resulted in Fast Moving Consumer Goods (FMCG) giants like <a href="https://www.businessinsider.in/business/corporates/news/the-big-boss-of-indias-largest-consumer-company-is-worried-about-stagflation-and-unprecedented-inflation/articleshow/91251341.cms">Hindustan Unilever</a>, Britannia, Nestle and Coke hiking their prices by 3-10% across their wide portfolio and have <a href="https://www.outlookindia.com/business/why-major-fmcg-brands-have-opted-for-shrinkflation--news-196667">shrunk </a>their products. The second increase in the price of domestic cooking gas cylinders, also known as LPG cylinder, by Rs 50 in two months, will add an extra burden to your expenses. With the <a href="https://www.ndtv.com/india-news/cooking-gas-cylinders-price-raised-by-rs-50-for-homes-2953666">revised rates</a>, a 14.2-kg non-subsidised cooking gas cylinder will now cost ₹ 999.50 in several cities. Expensive healthcare will also make a dent in your monthly budget as the government allowed pharma companies to hike prices by <a href="https://timesofindia.indiatimes.com/business/india-business/govt-to-allow-prices-of-essential-drugs-to-go-up-over-10-from-apr/articleshow/90449781.cms">10% for essential medicines</a> in April. This hike includes painkillers, antibiotics, cardiac medicines and 850 formulations in total. The rising inflation will not only directly impact the daily expenses of a wage earner that are slowly recovering from COVID-19’s impact but it also threatens to put them under further stress due to the recent hike in interest rates. After May 21, home loan EMIs will see a hike as RBI increased <a href="https://www.businessinsider.in/finance/banks/news/rbi-hikes-repo-rate-by-40-basis-points-to-4-4-as-it-seeks-to-reign-in-inflation/articleshow/91311941.cms">interest rates</a> by 40 basis points this month. 100 basis points make one percent. Low-interest rates are unlikely to come back as India’s own central government predicts that the country’s economy will take at least <a href="https://www.livemint.com/news/india/india-s-economy-to-overcome-covid-losses-in-fy35-recovery-remains-stimulus-dependent-rbi-11651238870034.html">12 years</a> to overcome covid-19 losses. It said that the ongoing structural changes catalysed by the pandemic can potentially alter the growth trajectory in the medium-term. <div type="image" title="Retail inflation rises to 7.79% in April" msid="91672851" hostid="261" caption="&amp;lt;p&amp;gt;Retail inflation rises to 7.79% in April&amp;lt;/p&amp;gt;"></div>

You Searched For "budget impact on common man" and got 10 results

India’s interim budget and the expectations from the ‘common man’

BI India Bureau

What does the Common Man want in Budget 2017?

BI India Bureau

Budget 2016 may or may not meet expectations of the common man

India Council on Competitiven…

Union Budget contains nothing for Bihar, common man: Tejashwi

PTI

Will Modi’s Budget Address Common Man’s Dreams?

Preetam Kaushik

WATCH: Budgets that Changed the Indian Economy Forever

Anushree

Saikat

Budget of Small Things

Guest Author

Union Budget 2022-2023: Here’s how FMCG brands reacted to the budget

BI India Partner

Finmin to launch social media campaign on budgetary terms

PTI

SIMPLY PUT: How India’s soaring inflation puts more burden on the common man's pockets

Popular Keywords

Buying Guides