Soumya Kanti Ghosh: Budget for everyone

The good thing regarding the Union Budget numbers is that despite a market cacophony, the Budget has not deviated from its long term goal of fiscal consolidation. Interestingly, at Rs5.46 lakh crore or 3.2 per cent of the gross domestic product (GDP), there is an absolute expansion in fiscal deficit by only Rs12,258 crore, nearly equivalent to Rs12,800 crore give way on account of personal income tax concessions. Thus the Budget is nicely balanced in terms of arithmetic. 

Net borrowings in the Budget has been pegged at Rs 3.48 lakh crore, after adjusting for Rs75,000-crore switch but contingent on a surge in small saving collections of Rs1 lakh crore. 

For the salaried class, there has been a tax cut from 10 per cent to five per cent for those earning between Rs2.5 lakh and Rs5 lakh. Around 13.8 million tax payers or 38 per cent of overall tax payers in this bracket (FY15) will directly benefit. 

Reducing corporate taxes for companies with an annual turnover up to Rs50 crore will benefit 96 per cent of companies. The idea of introducing electoral bonds is a novel idea and possibly the first of its kind in the world. 

The agriculture sector has also received specific focus in the Budget.

The writer is .Chief Economic Advisor, State Bank of India