Bengaluru, Feb 28: The much awaited budget has been presented and there are mixed reactions about it. Various schemes that would benefit the common man have been introduced, but many would feel that the Finance Minister could have done more. [Union Budget 2015: Highlights]
Professor R Vaidayanath, from the Indian Institute of Management Bangalore spoke exclusively to Oneindia about the budget and gave us his perspective on the same.
Oneindia: Is it a realistic budget?
Professor Vaidyanathan: There is no need for much hype on the budget. It is very realistic in nature taking into consideration the existing situation. The Finance Minister has done his best in the current scenario.
The focus is very much on the small businesses and educational finance authorities. I feel that this is a start and there is more to come from the Finance Ministry in the years to come.
Oneindia: A good step on black money?
Professor Vaidyanathan: "I feel that the Finance Minister has taken some very good steps on black money. It is a big issue and addressing this issue goes a long way in shaping the economy.
The finance minister has treated this issue as a criminal offence which could invite up to ten years of imprisonment. Encouraging transactions through debit and credit card is also a good step in tackling the problem of black money.
The other issue that could help curb the problem is quoting the Pan Number compulsorily for transactions above Rs 1 lakh. These are all very good steps.
However, let us see what the final revelations are on this front. Many have been there will be more steps introduced in this regard.
Oneindia: Will reduction of corporate taxed be accepted?
Professor Vaidyanathan: The finance minister has not taken any harsh tax measures. However reducing corporate tax is something that may not go down too well with many. It may not work politically at all for the government. The government has reduced corporate tax from 30 per cent to 25 per cent.
On the other hand, the individual continues to pay 30 per cent. This is something that may not go down too well. One must also take into account the fact that dividends earned by the big guns which runs into 100s of crores is not touched.
Taking all this into view the reduction on corporate taxes may not work.
We pay 30 and corporates pay 25 none will appreciate politically.
Oneindia: What is in for the common man?
Professor Vaidyanathan: We need to see how the schemes roll out. The common man according to me will be benefited to a large extent from this budget.
There are various schemes which have been introduced in terms of pension. There are also schemes for the old aged. The MNREGA amount too has been increased. These are some of the factors that would aid the common man.