Impact of the Union Budget of 2018-2019
Before the announcement of the Union Budget every year, there are often a lot of predictions that make the rounds. The announcement of the budget often sees either a confirmation of these predictions or changes that no one anticipated. The budget for the year 2018-2019 was no different.
Finance Minister Arun Jaitley announced the Union Budget for the financial year 2018-2019 in February. While the income tax slab for the salaried sector remained the same, senior citizens are likely to benefit the most from all the changes proposed. The budget for other sectors was also announced and some changes were not what most would have anticipated. Let us take a look at the impact of the changes proposed on various sectors.
Consumers
In the announcement of the budget for the financial year, Finance Minister Arun Jaitley increased the cess on health and education from 3% to 2%. This increase in cess is applicable to all goods and services consumed. This is most likely to result in an increase in prices of goods and services.
Infrastructure
The Finance Minister has proposed a 12% increase in the budget for road transport specifically. There has also likely to be an increase in the government expenditure on construction of regional airports.
Mobile Phones
The Union Budget proposed a 15% to 20% increase in customs duty on mobile phones. This is likely to result in increased sales of Indian mobile phone manufacturers. Foreign mobile phone manufacturers such as Samsung and Apple are likely to see a drop in their returns from the Indian market.
Financial Market
The budget proposed taxation on returns from investments made in the stock market and any other forms of long-term capital gains. The Finance Minister proposed a 10% taxation on long-term capital gains.
Healthcare
Healthcare facilities that are covered under the National Health Protection Scheme are likely to gain a lot from the changes to the budget. The government scheme has a plan to insure 500 million people for Rs 5 lakh a year.
Agriculture
The budget proposed increasing the minimum rate for crops offered to farmers. There is also a plan to increase investment in irrigation and aquaculture projects in the rural sector. Moreover, state governments are likely to invest more in solar-powered projects.
For More Information visit: Online Income Tax Calculator
Finance Minister Arun Jaitley announced the Union Budget for the financial year 2018-2019 in February. While the income tax slab for the salaried sector remained the same, senior citizens are likely to benefit the most from all the changes proposed. The budget for other sectors was also announced and some changes were not what most would have anticipated. Let us take a look at the impact of the changes proposed on various sectors.
Consumers
In the announcement of the budget for the financial year, Finance Minister Arun Jaitley increased the cess on health and education from 3% to 2%. This increase in cess is applicable to all goods and services consumed. This is most likely to result in an increase in prices of goods and services.
Infrastructure
The Finance Minister has proposed a 12% increase in the budget for road transport specifically. There has also likely to be an increase in the government expenditure on construction of regional airports.
Mobile Phones
The Union Budget proposed a 15% to 20% increase in customs duty on mobile phones. This is likely to result in increased sales of Indian mobile phone manufacturers. Foreign mobile phone manufacturers such as Samsung and Apple are likely to see a drop in their returns from the Indian market.
Financial Market
The budget proposed taxation on returns from investments made in the stock market and any other forms of long-term capital gains. The Finance Minister proposed a 10% taxation on long-term capital gains.
Healthcare
Healthcare facilities that are covered under the National Health Protection Scheme are likely to gain a lot from the changes to the budget. The government scheme has a plan to insure 500 million people for Rs 5 lakh a year.
Agriculture
The budget proposed increasing the minimum rate for crops offered to farmers. There is also a plan to increase investment in irrigation and aquaculture projects in the rural sector. Moreover, state governments are likely to invest more in solar-powered projects.
For More Information visit: Online Income Tax Calculator