Interview: Union Budget 2015 a realistic one, feels IIMB professor
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.
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