Budget & Women (impact)

“I have to be cruel to be Kind” Shakespeare lines from hamlet taken by our FM Mr Pranab Mukherjee were true if the budget has to be analyzed for women. Budget this time although increased basic limit for taxation for women (previously Rs 1,90,000 to Rs 2,00,000) by Rs 10,000 but the increase wasn’t specific to women unlike last budget where women had lot to cheer over men.

Well Even though previous additional exemption limit have had no major impact on tax savings but this move is more likely on the principle of treating women no differently from male taxpayers. The income tax liability w.e.f Assessment Year 2013-14(A.Y.) will differ only on account of age and income not on the basis of gender. So Mr Mukherjee is very well on that track to meet the expectation. So women tax payers who are used to seeing extra tax benefits will have to get used to this phenomenon which starts from this budget.

Mr Mukherjee did bring lot of new incentives sighting long lasting impact but those will take time. This budget had more pinching things than the reliefs.

 
The gold price this year itself has taken a toll, nevertheless, FM did not hesitate in increasing the customs duty & excise on gold jewellery, that means the gold jewellery prices will increase across the board. This certainly has been disappointing part, as, much of the savings at household level has been in terms of gold only. But gold coins of purity above 99.5% will be cheaper as compared to bars as there is no excise on them and silver jewellery has been left untouched. So accumulation of gold coins will be little cheaper.  

At household level, FM has set the LPG prices to rise again. The quantum is not clear yet, but it will certainly raise the eyebrows of most house makers. Its very clear that government is hardly been able to manage their finances (they have more expenses than income) which most of our Indian house makers & working women manage it very smartly and regularly. This problem will lead to increase in fuel prices and in turn prices of all food items will also rise incidentally. The fuel price hike has not been done yet. The house makers will have to face lot of challenges with this price rise scenario which has been regular since last two years, nevertheless, Indian women have been very well trained to do the same as once in a while onions and oranges cost the same in India. Smartly managing finances this year is a key, as, some more shockers in terms of prices of commodities are expected.

Shopping is going to be expensive this year, as the excise and other duties have been raised, so cosmetics to apparels everything will be costlier this year by 2% to 5% and may be more as imports will cost more. Not only clothing but, appliances like washing machines, refrigerators, AC s everything will be costlier. Many of the houses will have to see these appliances planning going for a toss.

Overall travel cost is set to rise this year as service tax has been increased and leisure travel will cost more and more. Cars will cost more, and may be petrol will cost more.  

So what good this budget actually has done, Mr FM has been cruel at taxing many house makers anticipating, this time as well, they will manage, but he has been kind while passing on benefits to the empowerment of women.

He proposed Under the Rajiv Gandhi Scheme for Empowerment of Adolescent Girls, SABLA, to spend Rs.750 crore. He was specific in quoting “Protein deficiency among women and children is one of the common sources of malnutrition in India. I propose to reduce basic customs duty on soya protein concentrate and isolated soya protein from 30 percent to 15 percent”.

FM has proposed that women borrowers will be given the benefit of lower interest on housing loan. Details are awaited.  But will certainly will be a booster for women as many of the women are self employed and actively tracking investment in various asset classes.

The budget as usual emphasized on multiple women empowerment schemes which were more concentrating on poorer section of India. The benefits of the same will be revealed over a period of time. Overall the budget for house makers and working women is taxing only, as in order to keep the house in order they will have to do much more as budget has more of thorny outline this year.