Union Budget 2021: Very disappointing for the middle class, say families

From more relief in individual tax slabs to tax relief for MSMEs, to opportunities for new jobs, to Mumbai - two families evaluate the Budget 2021 on whether it has given them what they had wanted

All eyes were on Finance Minister Nirmala Sitharaman on Monday, as she gave the Budget 2021 speech, promising to reset the economy, by boosting ailing sectors including health physical financial capital and infrastructure, inclusive development for Atmanirbhar Bharat, reinvigorating human capital, etc. But are the measures enough for the common man, who has spent months facing the relentless challenges arising from the pandemic? mid-day once again spoke to the families of Suresh Ashar and Sandeep Trivedi, about whether the Budget fulfilled their expectations.

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Bina Udeshi, 71 Housewife (Suresh’s sister-in-law)
I am a mother who knows the pain of losing a young son to a heart condition and who dealt with medical expenses of over R7 lakh, which wiped out our entire savings. So I am happy that the government has allocated Rs 2 lakh crore for the health care sector. I hope that the facilities they plan to create have the same standards of treatment and hygiene, seen in good, private hospitals.

Maurishka Ashar, 14 Student (Suresh’s granddaughter)
I am happy that Rs 35,000 crore has been allocated for the COVID-19 vaccine, so that the lingering fear and the uncertainty looming over our heads comes to an end once and for all. Youngsters are tired of the movement restrictions and are eagerly waiting for the schools, playgrounds and the malls to reopen.

Suresh Ashar, 85 Retired businessman
I understand that Rs 1.97 lakh crore will be spent on Production Linked Incentive (PLI) schemes in selected business sectors, and there are plans to set up seven textile parks under Mega Investment Textiles Parks (MITRA) scheme, in the next three years. If executed properly, this could attract huge investments and help India become a major player in exports, and at the same time create more job opportunities. I would have been happier if the government had also announced some more special incentives for senior citizens, who have spent their lifetime paying taxes.

Madhavi Ashar, 55 Family counselor/entrepreneur (Suresh’s daughter-in-law)
I appreciate the efforts of the government in floating multiple polices, which, if executed correctly, will benefit the country in the long run. But at the same time there is hardly any instant relief for small businesses, who have suffered major losses in recent times and are facing sustenance issues. My husband Nilesh and I have a small business. We have paid R 2.7 lakh per month in salary to our 15 employees during the lockdown, in spite of doing negligible business. With the local transport down, we also had to buy two wheelers for them and pay the EMIs. Families with cars are also feeling the pinch while paying for fuel. I had expected the government to give benefits to those with small families. This would have helped in easing the pressure off the economy.

Devang Ashar, 45 Software businessman (Suresh’s son)
I was expecting the government to focus on mid-size businesses and the middle class, whose savings have been depleted during the lockdown. I am glad that no new taxes have been announced. However, people were expecting more relief in individual tax slabs.

Shobhana Ashar, 75 Housewife (Suresh’s wife)
I have observed that peace prevails in the family when the inflow of the money is not reduced. It is good to know that the government is taking efforts to revive the economy so that all strata of the society benefit. I would have liked if the interest rate on FDs held by senior citizens was increased, as many a household survives on it.

Nimay Ashar, 28 MNC employee, (Suresh’s grandson)
My major expectations from the budget included tax relief for MSMEs to boost the business sector and infra revamp in major metros, where majority of the tax payers reside. It is good to hear that Rs 18,000 crore is being pumped in for a modern public bus transport and metro work is in full swing in 27 cities, which should ease the traffic congestion on roads. Overall, it is a good budget looking at a long-term horizon for India. Focus is on infrastructure development in rural areas. However, I couldn’t see anything for Mumbai which is in dire need of improvement in infrastructure facilities for a decent living. The budget, as always, was very disappointing for the middle class, which comprises the maximum tax payers. No relief, no standard exemption, nothing.

Sanket Trivedi, 22 Student (Sandeep’s son)
The two major sectors of healthcare and infrastructure are expected to become sublime after the boost provided. The opening of more schools and colleges across the country will encourage people to go for higher education. The privatisation scheme will bring in more money, but the government should pave the way to attract more FDI, which will create more job opportunities.

Bhavana Mankermi, 79 Housewife (Madhavi’s mother)
After our life-savings of Rs 30 lakh got stuck in PMC Bank, my husband succumbed to a stroke. I hoped and prayed that the new amendments proposed will assist people like us. An institution is  being set up to take over bad debts of banks. It will help build back the trust of the common man in the banking sector. I am also happy that health sector is getting a booster shot.

Sandeep Trivedi 55 Tax consultant
I appreciate the government’s approach of heavy spending in infrastructure projects, which will create new jobs in those sectors. However the government should have taken additional steps to give job stability to those rendered jobless in other fields, like MNCs and the service industry. Sadly, there is no relief for personalised taxation, except for senior citizens.

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