FMS’ Expectations From The Union Budget 2016
B-school students of 8 campuses across India participated as part of the new series of InsideIIM– ‘Expectations From Budget 2016’ in association with CNBC TV-18.
The following article contains excerpts of three students from FMS .
Given the high cost of living in metro cities, the minimum tax slab should be increased from 2.5 lakhs to 3 lakhs. Also, the tax exemption for ATC should be increased from 1.5 lakhs. For any salaried employee, most of the deductions goes through EPF, he is not able to claim deductions from any other sources, it should be increased.
GST should be implemented as early as possible. For start-ups, there has been a good initiative from govt like Make in India, Startup India, but now when they have introduced the 3 year tax exemption for the start-ups, the definition of start-ups needs to be very clear. The bureaucratic procedure involved in it should be minimised, also for the financial inclusion we need to make sure that everyone in the country has his identity proof, only then we can reach every person of the country and reach the bottom of the pyramind.
His expectations from the budget are fourfold: increasing the spend on Public education, increasing the spend on agriculture, improving the public healthcare and implementation of GST.
Implementation of GST will help in increasing our GDP by 3 %. The public health of India is not even comparable to that of China or to any other emerging economies. So improving healthcare has to be the priority.
Indian universities lag very behind around the world. The R&D spending has to increase; the faculty to student ratio has to increase. These things can be controlled by the budget if you look into it closely. Farmers still need help from the government. Crop Insurance and financial inclusion part has to be given more importance.
Saurabh Gupta comes up with 3 Major wishlist
First being – Capital gain tax period should not be increased from 1 to 3 years, rather it should be rationalised. The second expectation from Budget 2016 is that he does not want the corporate tax at this level, it should be rather cut by at least 1 %. The third wishlist would be having a tax holiday for start-ups.
Apart from this, the private sector incentivization should be there to create more jobs for the youth. The government should spend more on the health sector from 1.3 % of the GDP to 5 % of the GDP.
The govt should implement the must awaited Goods & Services tax, with it proposed at a17% & 18% GST as proposed by the Arvind Subramanian committee, the service tax rate should also be lowered. The budget should focus on skills development, on the rural as well as manufacturing sector because we are yet to see a growth in the manufacturing sector.