National Budget 2021-2022 :: Little Drops Of Water To Make A Mighty Ocean-It Ought To Be " MICRO- ECONOMY -BASED-NATIONAL- BUDGET "

Pic:TRUE representation of " MICROSCOPIC BUDGET " needed for  PEOPLE to " SURVIVE " 

National Budget 2021-2022 :: Little Drops Of water To Make A Mighty Ocean

It is again the Union Budget and Madam Nirmala Sitaraman who will have to peg the wall and beg the people to give her atleast another SIX monts to make the country stand on the feet after announcing this national budget for the year 2021-2022.

The reason is since the last March, 2021 the CORONA and the COVID- 19 has minced us and the entire WORLD to the dust and the days are such and were such that the DAWN did not bring any light or sunlight to any hopes that could have surfaced to  bring about an ADIABATIC or a VOLUMETRIC changes in anything as the world, and it’s industry was GRINDED to dust by the CORONA.

Imagine every industry  shirring and shutting  it’s  door and pulling it’s shutter such that this dreadful disease – THE GIFT OF CHINA TO THE WORLD should not encroach and encroach the others at all  never at all for th human being to collapse and die and the business as well as the income of one and sundry went to it’s death bed and from there to the graves as the economy of the world for the FIRST time in this century and for the NINTH time overall went to the red zone of being below the MINIS 6.0 on the GDP points.

Imagine a country like America whose GDP during the time of Corona was MINUS NINE on the scale .The WORLD  infact is crippled. It cannot stand on it’s feet now.

Unless and until the MICRO-ECONOMY in the entire WORLD stands and start walking the MACRO ECONOMY will never be able to see the light of the sun or face it at all. Everything in one go had gone and every thing cannot be brought back in one go for the economy to start rolling.

Under this influence of the economy being very bad and below the line of survival where the GDP of the entire world and of each and every nation is below the RED LINE, the Indian ecnomy will or would be better placed to everybody to feel that the economy is scaling and inching high on a positive scale.

India Better Placed In The World

Surprisingly , India is much much better placed as compared to the other nation or other countries. If compared to USA whose NATIONAL income has fallen so badly that their GDP for the period  between March 2020 to about November 2021 was placed at MINUS 9% because of the CORONA, the Indian Economy was far better placed ar PLUS 1.9% of the GDP scale. The WORLD BANK report says that the Indian Government under Mr Narendra Modi was far better in maintain the HEALTH SCALE of the country and that in a microscopic manner helped the natural human resource of India to atleast earn something for the nation as far as the national Income was concerned  .

THIS GIVES A SIMMER OF HOPE THT THE INDIAN ECONOMY WILL STAND AT 4% on the GDP points and it’s scale by NOVEMBER 2021 and by march 31st 2022 it would be at 5.78% to about 5.85% and if it stands at that points WELL IT WOULD BE A LANDMARK FOR THIS GOVERNMENT TO ACHIEVE THAT FIGURE INSPITE OF SO MANY A TURBULENCE WHICH HAS COMPLETELY RAVAGED THE ECONOMY DUE TO CORONA.

The Vaccine Which Will Do That

How will that happen. How will that be achieved. WELL IT IS THE VACCINE THAT WILL DO THAT.

The Corona vaccine which has been the critical eye ball and the critical point of discussion for the political parties is infact India’s FIRST TRYST with the DESTINY after it’s freedom that it received and achieved on August 15th 1947. This vaccine if it is injected to the people correctly within a time frame and this deadly disease is driven away by the hands of the BENEVOLENCE that injects it the DOCTORS and the medical staff, this COUNTRY will, within no time will stand up and move very fast to gear itself to make a move ahead in a GUSHING manner.

All the projects are held just for the vaccine to be injected to the body of the one’s who are waiting to rush to their place of work. It is the project that needs to be completed.Once done the MONEY will start flowing and the life will SPRING into action

The Financial bodies are just waiting for this  vaccine to come to the foreplay and once done this nation will be the first to bounce back into the energy with a FREE MIND to start working with full vigour ,ZEAL and ZEST and once that happens the GDP will see reaching an unexpected level to the state of being placing itself at 5.78% to about 5.86% and if that  is achieved IT WOULD BE A HISTORY AND A RECORD CREATED IN THIS WORLD BY INDIA

 “ A QUANTUM JUMP FROM 1.9 5 TO ABOUT 5.785 PERCENT IS ALMOST A JUMP OF OVER 300 PERCENT AND NO NATION IN THIS WORLD HAS EVER ACHIEVED THAT KIND OF A JUMP IN THE GDP IN IT’S ONE CALENDER YEAR AND IF INDIA DOES IT MADAM NIRMALA SITARAMAN WILL DEFINITELY BE THE CYNOSURE OF EVERYBODY’S EYE WITH THE PRIME MINISTER ADDING ANOTHER JEWEL TO HIS CROWN ” .

There is an OPPORTUNITY, there is a CHANCE and this chance ought to be converted into a big enchasing and encashing  opportunity >this is what the annual budget needs from the present Government to THINK on the lines and act to achieve the impossible. If done Madam Nirmala Sitaraman would be TAGGED and BILLED as the BEST EVER FINANCE MINISTER that India had and has ever produced and  THERE LIES THE CHALLENGE AND THE OPPORTUNITY FOR HER AND FOR THE PRESENT GOVERNMENT TO RECEIVE THAT CLAIMING HONOUR.

Basic Ingredient That Is Required To Make That Happen And Consideration’s To Be taken Into Account

There are basic MICROSCOPIC element that is needed for the present Government to be considered to be taken into account FIRST to GIVE and then to TAKE it back from the people as a resource and as a source of their income.

It is to be that and it is to be taken into account that inspite of being hit so badly by the CORONA which has completely NULLIFIED the state of economy all around the WORLD to me IT SEEEMS THAT INDIA IS AND INDIA WILL BE THE ONLY COUNTRY WHICH WILL NOT FALL INTO THE CLUTCHES OF MAKING A DEFICIT BUDGET WHERE THE DEFICIENCIES WOULD BE MADE UP BY THE APPLIED AND INDIRECT TAXES APPLICABLE IN THE MIDDLE OF THE TERM WHICH WE CALL IT A “ MID- WAY- IMPLIED - BUDGET ” .

This budget calls in for the INFUSEMENT-OF-LIFE- to the MICROSCOPIC ECONOMY and the focus has to be on that to prepare the ENTIRE budget. The focus ought to be oi n the-:

1). Milk and Milk producing items and those industries.

2). Animal Husbandries and Fishing sectors

3). Small Scale Industries and the Workers earning between Rs 1500=00 to Rs 5000=00 per month which is a very “ MINIMAL” and a    negligible source of earning in many a ways.

4).The survivals of the PETTY BUSINESS which includes the PETTY SHOP OWNERS etc .The RESULT of BIHAR ELECTION adds to the examples in a glorifying manner.

5). The PETTY FARMERS and their produce that they sell to sustain and survive.

6).The meagre amount of the salary and the interest from the Bank that the SENIOR CITIZEN are making to live hoping to get something good if not BETTER to make their life easy to live for the rest of their life.

MACROSCOPIC ECONOMY  

A). Bank- : Just makes the Banking process and the Banks to make an easy business and the ret will take care of itself. All the INVESTS in the Financial institution in which the Banks play an important role ought to be made far more accessible and very easy for the people to trust in these Banks and invest the amount so that they get a good returns.If that HOPE and if that BUSINESS is generated  IT IS THROUGH THE BANKS AND THEIR INCOME THAT ABOUT 75 % OF THE MACRO ECONOMY WILL SEE A GOOD DAY FOR ITSELF IMMEDIATELY BETWEEN THE PERIOD OF NOVEMBER 2021 TO APRIL 2022 FOR IT TO STEAM WITH FULL LATEN HEAT .

This will be possible only if the MICRO ECONOMY for which the BANK has to play an even and a very useful role is made to ROOL ON like the ROLL-ON bearings. This is where the National Budget has to be prepared.

Pic :: The Widespread Of " INEQUALITY " and " POVERTY " because of " NEGLECT " of  the ....." MICRO ECONOMY "..... 

The most important factor is that the rate of INTEREST either in some cases ought to be increased minimal and at some places it has to be reduced to a marginal limit.This and ONLT this is the spehere where the UNION GOVERNMENT has to apply it’s brain and to play the game INTELLIGENTLY and if done in an astounding manner THIS BUDGET WILL GO AS THE LANDMARK IN THE ANNALS OF THE INDIAN BUDGET.This would make the Prime Minister as the BEST in the business and will bring Mrs Nirmala Sitaraman to the WORLD-FRONT of all the economy that did put it’s BRAIN to prepare a NATIONAL BUDGET like this in the MOST DASTARD time that the WORLD had faced.

So where and what would be the MICROSCOPIC element that needs to be focused upon to make this BUDGET as the FUTURE of the Indian Economy to  RUN again on it’s feet after such a WORLD DISASTER event that took place recently. These are the points where the national focus ought to  be put and planned to make the forthcoming budget.

The Elements Of The Forth Coming Budget :: Microscopic Economy Is The Heart-Beat and Backbone -:

And so there it is — there again the time has arrived there would be the declaration of the national budget with all the new form of taxing the country would be at its fore and there again would be the howl and cry of the nationalist’s stating that this budget has nothing to offer for the common man and can do nothing for the country.

We have seen it all before, and we would see it once again the only difference is there would be a new Finance Minister  in terms of planning this budget for the FIRST time in the annals of Indian History with special focus on the MICRO-ECONOMY to FIRST stand up on the feet and then take the others along with it to run in a faster manner after some times.

Anyway what should and where should the Government target at, where ought it to be friendly for the common man and what should the budget be like for the people in general.

The Government of the day ought to consider these initial steps, and that would be more of a social and a general common man friendly budget.

Let us discuss those in detail:-

A.   Income Tax benefit

 


Pic - :: Income Tax

Last time around the Government had raised the limit of the income tax to Rs5.00 Lakhs per annum,  and  that is a reasonable limit and that should be kept constant to the limit of Rs 5 lakhs It means that until the amount of Rs 5.00 lacs earned there would be no income tax and it’s deduction this ought to be kept intact at ZERO. This ought to be maintained in terms of it’s STATUS QUO .

This ECONOMETRY illustrated in the FORM of a GRAPH states that the NATIONAL INCOME of the nation has gone on to increase itself by many a factor but the benefits have not been enough for the propelling drive of the people's need to enjoy the fruit's of the Government that it should have given it to the people to enjoy who contribute so much to the nation and it's revenue but the LOWER LEVEL of the people who earn between Rs 1500=00 to Rs 5,000=00 per month simply DO NOT get or derive any benefit's out of them despite they are the one's who build the nation through the HARD WORK and LABOUR.  

Look into the graph properly .The gap between the earning remaining at CONSTANT by the MICRO -  SCOPIC ECONOMY of the labour and it's earning as compared o the overall earning's of the nation clearly demonstrates the that the LABOUR has nothing to get out of it for them to prosper and develop themselves to raise their level of progress and their standard of life to something which could be  said that - IT IS "OK" 

B. Provident Fund

The interest of the Provident Fund from the Government ought to be raised at 9 per cent this will help the common man Say after retiring a common man gets about Rs 20 Lakhs as the Gratuity and say Rs  75 lakhs as the PF after say serving for 35 years that makes about one crore of rupees in toto. This entire amount if he keeps in the bank intact it will fetch him an annual returns of Rs 7.00lakhs per annum if it is a Bank of the stature of ICICI getting a interest as high as 7% . He is entitled to pay his Income Tax on Rupess TWO LAKHS only as thr First Five lakhs does not entitles him for any Income Tax. This ought to be maintained in a similar fashion.

However a line to be added.At present the GOI gives a national interst of 8.70% on the PF from it’s end. This needs to be raised to about 9% per annum SIMPLE-INTEREST-COMPUNDED if possible.

The IT on it for Rs 2.000 lakhs would be for the ceiling of Rs 2.00 Lakhs However the interest on the PF that the government pays ought to be raised to 9 per cent per annum When the bank is paying an annual interest of 7% on the fixed deposit to the Senior citizen, the Government ought to have taken some cognizance on the matter much before Anyway better late than never.

Let me make one point very clear to the Government especially this Government Even after getting Rs One Crore in the hand now-a-days the situation is not safe and better for the ones who retire from the Government job After all the retirement if they have said two daughters to get married and if they receive this Rs one crore as the amount this disappears when they set their feet to get their two daughters married that is the fate and that is the reality the Government especially this Government ought to realize it.

This Government from the last year has come out with a decision that there would be no income tax levied on the amount of Gratuity for the time they receive first, at their hand after receiving that is a right decision taken, and the Government should stick to that stand.

However the present situation after the COVID-19 attack also ought to be studied very carefully before taking and fixing any limit on the same. This requires a very careful study before coming out to an conclusion on the same.

 Budget 2021 will help generate greater savings for individuals, says the analyst who are experts in this field.It will only be possible if the lending rates are properly worked upon and the  process is made easy  for the investor’s to invest and transact with the bank. This simplicity will hold good else not.This is where the rates of interest ought to be fixed after a proper calculation.. To boost your personal finances, here's help to save more.

 C . Joint home loans

If you have bought a new flat jointly with your spouse and are also paying the home loan together then each of you is entitled to a deduction of Rs 2 lakh to Rs 2.5 lakh. If you have a working son or daughter and the bank is willing to split the loan three ways, all three can avail deduction.

 D. Leave travel Concession

 Leave Travel Concession (LTC) exemption is allowed to you as a salaried employee for 2 domestic journeys taken in a block of 4 calendar years. The current block of four years commenced on January 1, 2014. So if you haven't taken that much-needed break last year (2018-2019), do so now. Keep proper tabs, retain relevant travel bills and claim your LTC.

 E. Transport

For claiming transport allowance exemption, you don't need to submit expense proof. But if you are incurring expenses on official travel, your employer can reimburse the expense on the basis of the claim submitted (backed by bills) and this is not taxable.

 F. House Tax or the EMI on the house to the Bank

 This ought to be looked from the national viewpoint I do not know whether the Government had given a food of thought on it but now the time has come Say suppose a common man pays Rs 44,000=00 per month on the EMI for the flat or the house that he has constructed, and he gives to the Bank that kind of EMI per month the Government ought to consider to give it a full benefit in terms of the IT for this money that he is paying to the bank per month.

If this kind of leverage is being thought of then definitely the people will be inspired to put more money in the business of the real estate for constructing their house  and this money lender as the loan , this loan amount or the  money will come to the Government courtesy the Bank.

G. Education and some leverage towards it

Education has become very expensive nowadays Nowhere and never would be the amount less than anything between Rs 2.00: Lakhs per annum to educate a child and over it, there is another expense of shelling it through their wallet for them to make their children stay at the hostel for their education All these are very expensive. This is at the nursery level from the stage of Class 1 to the stage of class fifth.

Though the income tax limit that myself on an individual basis advise it to be fixed at Rs 5.00Lacs per annum by the Government which works around Rs 42,000=00 per month, and this is not at all a very high amount the amount is not really enough for anybody to shell it in the manner one can forgetting his or her child educated in a grand manner in a reputed college or at school Some kind of a leverage ought to be thought by the Government in this case for and of a family where there are two or more than two children going for the education at the same time this ought to be the prime concern.

Strategical Steps needed to be thought about and implemented

Some strategically steps that can make a difference and some leverages that can give a complete fillip to our national budget What are those and how can the Government make the national budget more friendly for the ordinary human being surviving this article describes it all And so there it is. There again the time has arrived there would be the declaration of the national budget with all the new form of taxing the country would be at its fore and there again would be the howl and cry of the nationalist’s stating that this budget has nothing to offer for the common man and can do nothing for the country. We have seen it all before, and we would see it once again the only difference is there would be a new Finance Minister and for the first time in the history of the nation we would have a lady Finance Minister describing it all and speaking it all for the budget Anyway what should and where should the Government target at, where ought it to be friendly for the common man and what should the budget be like for the people, in general, the Government of the day ought to take these initial steps into consideration, and that would be more of a social and a general common man friendly budget.

Let us discuss those in detail:-

Taxes on the Industries

The Government has two types of taxes that it levies to and on the industries and the people working in the industries the first is the IT on the low income this is on the ordinary people the next is the Income Tax on the industries which the industrial houses run to run their business.
This amount or the limit ought to be raised First of all the limit to bracket the Small Scale industries, the medium scale industries and the large scale industries ought to be given a thought of and the limit of their Turn-over ought to be lowered It is because the business world over is receding and the turnover limit is falling day by day the Government of the day ought to rethink on these lines and take the step to lower the annual income limit in terms of the turn-over for these every organization.
Based on it the limit for the IT on these organization ought to be fixed the IT ought to be fixed on the NET PROFIT of the organization and not on the overall profit this needs to be worked out by the Government It is that only 5% of the working class and less than 5% of the existing industries are paying the taxes in terms of the IT to the Government this is simply an attempt to throw the slur on the eye of the Government and save the taxes by hook and the crook the Government machinery ought to be “ creased – and filed “ for all these and it ought to be looked into the matter that every industry pays the taxes accordingly to the Government.

Taxes on entertainment etc

the taxes on entertainment come from the film industry, the hotels and the places where the amusements are carried out the taxes on these industries ought to be taken into consideration and fixed accordingly A very heavy tax may mar the industry but a tax which could be termed as the middle path tax could be thought of and a food of thought is raised on the matter of taxes on these industries A liberal tax may be too heavy for the Government to bear but extremity can be disaster It is a thought that ought to be given on this industry the taxes should be as good as friendly and a generous – friendly tax which should motivate the people to spend their money on entertainment and amusement ought to be levied this will bring more revenue to the Government.

Taxes on Petrol

Time had come both for the Government and the people to rethink on this the rates of petrol from 2004 when it was Rs 43=00/litre now has gone to Rs 88=00/litre this has to be freezed.
Petrol for that matter constitutes the Government CHEAPEST AND EASY WAY TO EARN MONEY, it  spends the heavy and a bulk income for the Government the money collected as the tax from petroleum and the petroleum product on many national issues It is a fact that we have to but so many a kind of different arms to bolster the strength of our defence forces We have to buy and provide our Police force the kind of trainings and the arms needed by them to reinforce the Police force to take on the Naxalites and the anti-social elements the Government needs the money for the same However the Government also needs to think about the maximum that a common man could pay for a litre of petrol Increment on the rate has crippled the common man in terms of his movement but that has not brought about a complete end to the movement and all of his problems A time has come for the Government to either think of RATIONING the use of petrol which the people will never agree or to RATIONING the rates of petrol freezing it to one and some point where the rates of petrol could be termed as freeze for that rate.


It is a herculean task for the Government At one hand the subsidies that the people are enjoying the gas cylinder also is adding the Government to shed it’s perspiration and on the other the Government has to also control the loss-making Petroleum companies and take the necessary care also of it’s employee inducted into that on their rolls the time has come for the Government to think in terms of rationing the industries and the product which relates to petrol the common man will find too hard to bear the expense of shelling Rupees 100/litre on petrol this the Government ought to think and think it on a very analytical lines.
Contrary the people also will have to think that India needs an additional force of about 43,000 armed and trained personnel in the Army beside a full-fledged Commandant force in terms of BLITZKRIEG COMMANDO’S to take over the social elements who take on the country for granted We need a lot of modern, sophisticated arms to deal with our enemy which includes the likes of Rafael fighter planes, the S-400 the other fighter planes and helicopters both for fighting the enemies and carrying the arms-load this also ought to be a matter of rethinking and thinking from both the side.

ECONOMETRICS OF THE BUDGET

This budged ought to think and explore all the possibilities in terms of the ECONOMETRICS Econometrics involves with the mathematics and calculus of the economy Nowhere and never has the econometric been the main focal point of our national budget.
The first thing that the budget needs to think is to create more and more jobs the second is the revival of the sick units and the public sectors units the third is the creating a chance for the Small Scale industries taking a quantum leap forward of course to become either the subsidiaries or the ancillaries of the Heavy and the Large Scale industries.
The budget should open the avenues for the existing Public Sector to invite the Small scale industries to move forward to the Public sector Industries for them to become the supplying line or the feeders for some of the most essential spare parts this will create many a job for the specialized, semi-skilled and the unskilled labours Some of our industries like the Coal industry, the railways especially the places where the wagons and the engines are made, the automobile industries to name a few are so very strong that time has come to encourage these heavy industries to attract the ancillaries and the subsidiaries to help them make the spare parts for them keeping the quality and the method of manufacturing as per the requires ISI and it’s standard this will bring about a magical change in the scenario.
This budget should focus on the sectors like FOREST which is the most needed and essential of the sector that needs to not only raise the GDP by about 1% to 1.50%, but it is needed to raise the jobs as well as the source to produce the rainfall and the water.

This budget automatically should raise the efforts to strengthen the farming and the agriculture, the animal husbandries and the exports as well that relates to agricultural products, the forest produce and the heavy industrial products this is the need of the hour.

In this budget the greatest econometric would be CAN THIS BUDGET FOR THE FIRST TIME OPEN UP THE AVENUES OF PRODUCING THE ARMS AND THE RAILWAY COACHES AS WELL AS THE WAGONS FOR EXPORT.


For if India opens up the avenues in this year itself for exports on these lines believe me Mr Narendra Modi would become the GREATEST ever Prime Minister that the Asian country ever had produced.

Well , that is it and That sums it all.

Regards and Thanks

Pics



Shyamal Bhattacharjee 

Mr Shyamal Bhattacharjee, the author was born at West Chirimiri Colliery at District Surguja, Chattisgarh on July 6th 1959 He received his early education at Carmel Convent School Bishrampur and later at Christ Church Boys' Higher Secondary School at Jabalpur. He later joined Hislop College at Nagpur and completed his graduation in Science and he also added a degree in    B A thereafter. He joined the HITAVADA, a leading dailies of Central India at Nagpur as a      Sub-Editor ( Sports ) but gave up to complete his MBA in 1984 He thereafter added a Diploma In Export Management. He has authored THREE books namely Notable Quotes and Noble Thought published by Pustak Mahal in 2001 Indian Cricket : Faces That Changed It  published by Manas Publications in 2009 and Essential Of Office Management published by NBCA, Kolkatta  in 2012. He has a experience of about 35 years in Marketing .






Signature Of Shyamal Bhattacharjee 

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