Tuesday, March 1, 2016

Income tax and budget of 2016

Yesterday Union Budget of India 2016 was produced in parliament. People are discussing impact of the budget. I thought that I should also discuss impact of budget on people of India.

In this budget finance minister has not increased tax slabs, not reduced income tax rates but increased service tax from 14% to 15%. The finance minister has increased allocation for farmers, healthcare and education.

People care complaining that why our tax money is being spent on farmers instead of being spent on us. They are making excuse that the money spent on farmers and healthcare actually land up in being wasted in corruption therefore government should not spend money there. The problem of corruption is in every department. Should government stop building roads in cities also just because there will be corruption with funds being allocated for roads? The answer to this question is no because tax payer want roads in city for himself. But government should stop constructing roads in villages because it leads to corruption and easiest and proper solution to corruption stop spending money on villages. Government should save money by closing down schools and hospitals because these places are center of corruption according to educated tax payers of India. These tax payer want reduction in their taxes by forcing poor people out of schools and sick people out of Hospital. According to them corruption happens only when government tries to spend money on poor people. If government construct roads in city it is corruption free but if government construct roads in villages there is 99% corruption.

I feel that government's efforts are in right direction and government should focus on uplifting the poor farmers. Government should focus on removing corruption from social work done by government. India's current condition where 90% of wealth is held by 5% people is not good. We need better wealth distribution. Government is on right track. I wish them success in their work.