Is Union Budget 2017 balancing act after demonetisation effect?

New Delhi: Meeting a family on a budget day, where virtually everyone is a tax expert is a sure shot eye-opener. The sad part is there is no knee-jerk reaction. Eminent tax expert Ved Jain feels this year’s budget has been a rather balancing exercise by the government realizing the impact of demonetisation on the overall economy.

“After taking very strong steps like demonetisation and realising its impact on the overall growth of the economy, the government was in a dilemma and was compelled to do a balancing act to spur growth and bringing back stability,”says Ved Jain.

Sitting in the tastefully done up living room with his family, he shares his happiness on how the government has spared his family belonging to very high income group, while being pro-lower income group.

“I believe we all fall in the highest bracket are gainers by Rs 30,750 this budget. It is an incidental benefit the FM (finance minister) has given to both low and very high income groups,” he says.

His son Ankit Jain, who is an advisory for international businesses is a happy professional after service tax rates have been reduced. “Very happy the FM has announced to cut corporate tax rates. This is a good way of telling small businesses to create a corporate entity with transparency in governance,” Mr Ankit says.

Mr Ved’s daughter Shilpi and daughter-in-law Anchal are not very happy. While Ms Anchal complains everything is getting expensive, be it eating out, international travel or shopping big brands as there are luxury taxes, Ms Shilpi said there are no sops.

“There have been no sops for households this time”, complains Ms Shilpi.

This budget hasn’t made any change in the savings for the family. Exemption under 80C continues to be Rs 1,50,000 and so does Rs 2 lakh deduction on housing loan interest rate. No new venue has been opened up yet for long-term savings and investments.