The FY 2024 budget focused on economic recovery, infrastructure development, and social welfare. Key allocations were made towards healthcare, education, and rural development. The government emphasized fiscal prudence while aiming to boost economic growth. Despite these positive aspects, the budget introduced several measures that increased the tax burden on various sectors, raising concerns among middle-class citizens.
 |
| Source - arlanayselestina.pages.dev |
High Taxation
Measures
One of the most
notable aspects of this year’s budget was the imposition of higher taxes in
certain areas. The government increased the surcharge on high-income
individuals, which indirectly affects the middle class through increased costs
of goods and services. Additionally, there was a hike in customs duties on
electronics, aimed at promoting domestic manufacturing but leading to higher
prices for consumers. Excise duties on fuel were also raised, contributing to
the overall cost of living.
Impact on the Middle Class
The increased tax
burden has significant implications for the middle class. Higher taxes on goods
and services mean that everyday expenses, such as fuel, electronics, and
household items, will become more expensive. This escalation in prices can
strain the budgets of middle-class families, reducing their disposable income
and savings. The increased surcharge on high-income earners can also indirectly
affect middle-class professionals aiming for upward mobility, as companies may
pass on these costs to employees through lower salary hikes and benefits.
Facts from the Budget
Finance Minister
Nirmala Sitharaman outlined several key points in this year’s budget. These
included a 10% increase in customs duties on electronic items and a 2% increase
in excise duties on fuel. A new surcharge of 37% was introduced on incomes
above INR 5 crore. There was also increased spending on healthcare and
infrastructure projects. Additionally, new tax benefits for startups and small
businesses were introduced to stimulate economic growth.
Healthcare and Social Welfare
While the budget imposed higher taxes, it also focused on healthcare and social welfare. A significant allocation was made towards the National Health Mission and Ayushman Bharat, aiming to improve healthcare access for all citizens. These measures are intended to mitigate the impact of the pandemic and improve overall public health. However, the benefits may be overshadowed by the increased cost of living due to higher taxes.
Infrastructure
Development
The budget allocated substantial funds for infrastructure development, including roads, railways, and urban development projects. These investments are expected to create jobs and stimulate economic activity. For the middle class, this could mean improved living standards in the long run. However, the immediate impact of higher taxes may dilute these benefits, making it a double-edged sword for middle-class families.
Education and Skill
Development
Another focus area was education and skill development, with increased funding for digital education initiatives and skill development programs. These measures aim to equip the workforce with necessary skills and reduce unemployment. For middle-class families, access to better education and job opportunities could be a positive outcome, balancing the negative effects of increased taxation.
Future Outlook
The budget’s focus on
long-term growth and development presents a mixed bag for the middle class.
While the higher taxes will strain finances in the short term, the investments
in infrastructure, healthcare, and education hold promise for future improvements
in living standards. The government’s challenge will be to balance immediate
tax burdens with long-term economic benefits, ensuring that the middle class
can thrive in the evolving economic landscape.
Final Words
The FY 2024 budget by
Finance Minister Nirmala Sitharaman presents a comprehensive plan for economic
recovery and development, but with significant tax increases that could impact
the middle class. The government must address these concerns to maintain public
support and ensure balanced growth.
Written By Ayush Kannojia
This article has been authored exclusively by the writer and is being presented on Eat My News, which serves as a platform for the community to voice their perspectives. As an entity, Eat My News cannot be held liable for the content or its accuracy. The views expressed in this article solely pertain to the author or writer. For further queries about the article or its content you can contact on this email address - ayushkannojia1000@gmail.com
0 Comments