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FM likely to present budget for 'aam aadmi'

As anticipated the finance minister has tabled a populist Budget with the social sector issues being the focus areas. There is little for the media industry in general and the radio industry in particular. An increased outlay of 15% to 20% over the previous plan allocations has been made towards health and education. Relief awarded by way of waiver of farm loans is definitely a poll bonanza. The minister has unfortunately been silent on how the Rs 60,000 crore that is expected to be waived would be funded.

Other agri-oriented measures like a boost to fertilisers, irrigation etc would lead to better farm productivity and hence growth of rural India. This would have a cascading effect on capital goods sector. An impetus to the agricultural sector will boost demand at the bottom of the pyramid. This will fuel overall growth of the economy and our business too.

Attention to University education is in line with the country’s current requirement of trained manpower to do justice to the increased skilled labour requirements. On the tax front, service tax needed to be reduced, especially since the radio industry is at its infancy and has great potential for employment and media opportunities in the semi-urban and rural markets. Increase in slab rates for personal taxation would definitely go down well with the general population.

Other commendable measures include the relief from fringe benefit tax on guest house maintenance, additional deduction under sec80D, increase in threshold limit from Rs 8 lakh to Rs 10 lakh, relieving small service providers from numerous service tax compliance schemes.

From the media industry perspective, the budget has been neutral. The reduction in customs duty on set top boxes would bring down capex costs for the television broadcasters. Although the budget has not met the expectations of the corporate Inc on the desired reforms, kudos to the finance minister for providing a budget which is Life Banao for most people.