The impact of the budget on the common man depends on various factors, such as taxation, subsidies, inflation, and social welfare programs. Here are some key ways in which the budget affects daily life:
1. Direct Impact on Income & Expenses
- Income Tax Changes: If the government increases the basic exemption limit or reduces tax slabs, salaried individuals benefit. Conversely, higher taxes may reduce disposable income.
- GST & Indirect Taxes: Changes in GST rates affect the prices of daily-use items, fuel, and services.
- Salary & Employment: A budget focused on infrastructure, MSMEs, and job creation can boost employment opportunities.
2. Cost of Living & Inflation
- Fuel & Transport: Taxes on petrol and diesel directly impact transportation costs, leading to changes in commodity prices.
- Food Prices: Changes in agricultural subsidies or import duties can make essential goods cheaper or more expensive.
3. Social Welfare & Benefits
- Subsidies: Government support for LPG, food, or fertilizers reduces household expenses.
- Healthcare & Education: Increased budget allocation for healthcare and education benefits the common man through better public services.
- Direct Benefit Transfers (DBT): Welfare schemes like PM Kisan, MGNREGA, or scholarships put money directly in people's hands.
4. Savings & Investments
- Interest Rates & Bank Deposits: Budget policies influencing RBI decisions can impact FD rates, loans, and EMIs.
- Stock Market Reactions: Budget policies affect investor sentiment, indirectly influencing mutual funds and retirement savings.
5. Digital & Infrastructure Development
- Smart Cities & Rural Connectivity: Increased spending on roads, railways, and digital infrastructure boosts convenience and opportunities.
- Startup & Entrepreneurship Support: Tax relaxations and funding for startups help small businesses and job creation.
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