1. Union Budget 2017: FM Arun Jaitley provides Bollywood hint of hope with proposal

Union Budget 2017: FM Arun Jaitley provides Bollywood hint of hope with proposal

There's good news for Bollywood in Arun Jaitley's Union Budget speech.

By: | Published: February 1, 2017 11:48 AM
arun jaitley, union budget, arun jaitley speech, union budget entertainment tax, union budget bollywood, union budget bollywood reaction, union budget movies, union budget service tax, union budget gst, arun jaitley union budget speech There’s good news for Bollywood in Arun Jaitley’s Union Budget speech. (PTI/ Twitter)

As Finance Minister Arun Jaitley reveals the much-awaited Union Budget, Bollywood may well have seen a glimmer of hope this year. Jaitley said one of the goals of the financial year 2017-18 was, “Energizing the youth to reap benefits of growth and employment,” during the address. While the statement seems to have little connection with Bollywood, the spending power of the youth and the profit made by movie theatres and the entertainment industry in general has a direct correlation. Simply put, with more money in their pockets, spending on leisure activities like movies becomes a viable option.

Currently, aside from metropolitan cities where even school children are able to spend money a monthly visit to movie theatres, this is far from the norm in smaller cities and towns. This disparity comes from the lack of spending power of the youth in such places – where a family’s financial resources have to be distributed between more pressing needs. However, if the youth is provided with jobs, spending should not be such a problem in the coming year. Jaitley has said that the government will focus on creating more jobs for youths and this could inadvertently be an advantage for Bollywood.

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While so far, nothing has been said on the entertainment tax, the Bollywood fraternity is hopeful that with the introduction with the Goods and Service Tax (GST), taxes that movie producers have to pay will be equal in all states. This will surely make it easier on the pockets of the young adults purchasing the tickets.

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Given recent Bollywood’s shift of content from more family-based movies to youth-centric films like Pink, OK Jaanu and Kaabil, this recent incentive from the Union Budget will be a welcome one for the film fraternity.

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