This is going to be a very tough balancing act for government. So far middle class has been at the receiving end. Be it demonetisation, fuel prices, various cess and taxes. This segment has been expecting Direct (Income Tax) slab reduction from last two budgets. They also make some equity and real estate investments, which has received the burnt of executive decisions. Naturally, they are awaiting much needed break in tax slabs.
On the other hand, there is widespread misery in agrarian community. Farmer suicide, mounting debt, crop losses and price reduction due to restricted goods movement during demonetisation. The SME sector is struggling to stay afloat as bank credit is at its lowest. And do not forget this is going to be the last budget
sans election fervour. So, a very crucial one to watch out for. From sectoral point of view, we wish that tax on services (even under GST) to remain at 14% level, and additions cess and levies should be removed.
The author, Satyam Kumar is CEO, Loantap.