We, as middle class people, have paid taxes throughout our working lives but there are no tax benefits now that we are retired. Inflation is on the rise and our expenses have gone up from last year. Cost of healthcare has also gone up significantly.
There is less money in our hands now. We depend on fixed deposits' interest and pension alone for our income and I was expecting some tax exemptions for senior citizens. Unfortunately, the Finance Minister has ignored senior citizens completely. The good thing, though, is the housing loan subsidy. Also, there has been no increase in LPG costs, thankfully.
I am also happy that importance has been given to development-related fields such as infrastructure, agriculture, rural healt and education, power and malnutrition. Directly linking subsidy for retail and farmers to bank account-based on Aadhar card is also a good decision. If everyone around us is happy, we are also happy. In this sense, the Budget is growth- and stability-oriented.
Though the focus of the Government is on reviving fiscal health, this budget would put pressure on common man with the price of consumables rising as the excise duty has gone up from 10 per cent to 12 per cent. The silver lining is that coal-starved industries will get a fresh breather with the exemption of import duties. The same applies to LNG and minerals as well. The mining industries will be boosted as they have received a waiver on customs duty on mining equipment.
As usual, with the focus on rural development, the gadget-savvy urban population will not be very happy with the cost of refrigerator, TV and phone bills swelling up. I feel, though, that overlooking the powerful women in and around Government, the Ministry is taking a big risk with gold and diamond jewellery become dearer.
Subhasri Nandi, Corporate professional
As a tax payer, in terms of the personal taxation moves, I don't see much impact as in any case those slabs do not affect us. Another minor point which struck was me was the move on advance tax. I know it is a very small thing, but as somebody who takes care of retired parents' finances, I feel it is a great gesture to people who do not have business incomes.
I think on white goods, I went completely wrong – I just bought an LCD TV and a mobile phone, a Nokia Lumia. I feel both have been disastrous buys.
We all know airlines are bleeding, so costs had to go up. But as somebody who does a lot of personal travel that is going to pinch.
The surprising and cute one is that movie tickets are going to come down.
I am a big movie buff – and I guess now we will drown our sorrows in some extra entertainment.
Salone Mithal Ghosh, Financial Consultant
Cigarettes, cars, gold and diamonds now becoming more expensive isn't going to make a difference in our lives, but we'll be thinking twice before we eat out next. Our phone conversations are going to cost us more, and we might have to wait a little longer before replacing our fridge or washing machine. I don't see a family vacation in the near future, either.
There seems to be some good news, though, in the form of increased disability pensions, cheaper medications to treat cancer and HIV, more money for rural development, agriculture, irrigation, education, urban health and more roadways. If things get too bad, I guess I could always take my blues to a night out at the movies as the tickets are more affordable now.
Aparna Balasubramanian, Freelance photographer
I will not get killed using a hands-free set to talk as it got cheaper but talking will get me, thanks to the increase in service tax, which went up from 10 per cent to 12 per cent.
Roll-back on personal taxes is a relief. And I will get a deduction up to Rs 10,000 from interest from savings bank account but what I save will now be eaten up at restaurants and travel (air and train). Between excise duty and service tax, where are the savings? It is a scenario of the government giving from the right hand and taking from the left.
On a more serious note, it is good to see that concessions have been made to environment-friendly items, LED bulbs and solar power lights.
For aam janta like myself Budget 2012 is a wash-out.
Roopa Naryanappa, Entrepreneur