What is it about?
The Government presents the Union Budget, every year. Thousands of people watch the budget, presented by the Finance Minister. It is from the budget we get to find out how the Government has spent our country’s money and what it plans to do in the coming year. Needless to say, it is an important national event, and has a big impact on our day-to-day lives.
Why is the budget important?
A large part of our country’s money is from its people — you and me. We contribute by paying taxes. Taxes are a fee paid to the Government in exchange for being able to do or buy something. There are many kinds of taxes that we pay such as Income Tax, Service Tax, Value Added Tax and so on.
Better roads
This Budget has allocated money to build 1 lakh kilometres of roads. Many roads in our country, especially in and around the villages, are still very rough and difficult to drive or even walk on. When proper roads are built, we are connected better to other cities and villages! Most children in villages walk to school, which is another reason why building better roads is important in the rural areas.
Think about it: Why do we need more roads?
Talk to your parents about this Budget. Did they think it was a good budget? Why, or why not?
What has changed now?
When taxes are increased or decreased, prices of the things we buy also increase or decrease. This year’s budget had an increase in “Service Tax”, which means that eating out at restaurants, travelling in airplanes, staying in hotels, amusement parks, making phone calls and even shopping online will become more expensive! Another tax that saw an increase is “Excise Duty”, which is charged on all things that are made in India. So, Plastic bags, fizzy drinks and mineral water will be more expensive in the coming year, but, mobile phones, electronics and leather shoes will be cheaper.
Think about it: Do you think Service Tax and Excise Duty will affect you in any way?
Girl power
The ‘Sukanya Samriddhi Account Scheme’ allows parents of girls below the age of 10 to open an account with the Government, in which they can make deposits every month. Opening this account has extra benefits as well. This is an important announcement because it is the Government’s way of telling its citizens that girl children are important to society, and they must be empowered.
Think about it: Why is there so much focus on girl children in India?
Better schools
The Finance Minister has also announced that nearly 80,000 secondary schools will be upgraded. This means more students in India will have access to better education.
Think about it: Is education really necessary?
More toilets
One of the most important announcements this year is a plan to build six crore toilets across the country, with the Swachh Bharat Abhiyan Programme. You might think it’s silly that toilets get so much attention, but in fact, it is important in India. Billions of people still don’t have access to basic toilet facilities, and as a result, they are at risk of catching diseases. Many girls in rural areas don’t go to school because there are no toilets there.
Think about it: What do you think of the Government building more toilets? Is it useful?
Farmer-friendly budget
There will be many benefits for farmers, according to this year’s budget. Steps are being taken to improve soil and the quality of water. The government also has plans to educate farmers about better ways of irrigating and watering crops.
Think about it: Why is it important to pay attention to farmers?
Interesting facts about the budget:
> India’s first budget was presented on April 7, 1860, by James Wilson of the East India Company. It was presented to the British Crown.
> Until the year 2000, the budget was always presented at around 5 p.m. Yashwant Sinha changed it for the first time, by presenting it at 11 a.m. during the 2001 budget.
> Jawaharlal Nehru, Indira Gandhi and Rajiv Gandhi are the only Prime Ministers to have presented the Budget.
>The word “budget” comes from the French word “bougette” which means leather bag.
Highlights
> Rs.25,000 crores has been set aside for Rural Infrastructure Development Bank, to improve roads and other facilities in the villages.
> The Government has planned to ensure that everyone has housing by the year 2020.
> The Government plans to set up AIIMS in Jammu & Kashmir, Punjab, Tamil Nadu, Himachal Pradesh, Bihar and Assam.
> The Government also plans to set up a University of Disability Studies in Kerala and a Centre for Film Production, Gaming and Animation in Arunachal Pradesh.
> Rs.75 crores has been set aside for the production of electric cars.
Think about it: Is it necessary to improve infrastructure in rural areas? Why do we need electric cars?
