Middle Class FOOLED Once Again? | Budget 2024 | Dhruv Rathee

Summary

The video discusses the public's negative reaction to India's Budget 2024, highlighting increased taxes on capital gains and speculation on property prices. It also touches on the government's focus on unemployment, skilling schemes, and the distribution of funds among states, suggesting a need for more equitable taxation and support for the middle class.

Takeaways

• 😠 Public backlash against the 2024 Indian Budget is intense, with even staunch supporters of Prime Minister Modi expressing discontent.
• 💰 The government is perceived as targeting the middle class for tax revenue while providing benefits to the wealthy, leading to criticism of inequality.
• 📉 The budget has increased both Short-Term Capital Gains (STCG) and Long-Term Capital Gains (LTCG) taxes, affecting investors in stocks and mutual funds.
• 📈 The Economic Survey of 2023-2024 suggests that the government is concerned about stock market instability, indicating a rationale for discouraging excessive market growth.
• 🏦 The removal of indexation benefits on property transactions might curb property price speculation but could also impact those who bought properties at lower prices and face higher taxes.
• 📚 The government acknowledges a severe unemployment problem and the lack of employable skills among Indian graduates, proposing job creation and skilling schemes.
• 🤖 The Economic Survey also highlights the disruptive impact of Artificial Intelligence on jobs, creating uncertainty across all skill levels.
• 🏘️ The budget proposes various employment and skilling initiatives, including financial support for first-time job seekers and incentives for employers to hire more staff.
• 💼 The budget's changes to income tax slabs offer minor benefits to the middle class, but the overall impact is considered negligible compared to previous governments' efforts.
• 💎 The criticism of the 'Angel Tax' on startups is addressed by the government's proposal to remove it, a move that has been well-received.
• 🗳️ The budget's allocation of funds to specific states like Andhra Pradesh and Bihar is seen as politically motivated, with the opposition dubbing it a 'Seat Conservation Budget'.

Q & A

What was the public's reaction to Budget 2024 presented by Finance Minister Nirmala Sitharaman?

The public's reaction to Budget 2024 was largely negative, with even the biggest supporters of Prime Minister Modi expressing anger against the government due to perceived unfair tax policies.

What is the main criticism regarding the tax policies in the 2024 Budget?

The main criticism is that the budget seems to squeeze money out of the middle class while providing benefits to the wealthy, including millionaires and billionaires, which is seen as unfair.

How did the budget address the issue of income inequality in India?

The budget did not directly address income inequality, but the speaker in the script suggests that the government should focus more on promoting the growth of the middle class and taxing the wealthy more.

What changes were made to the Capital Gains tax in the 2024 Budget?

The budget increased both Short-Term Capital Gains (STCG) tax from 15% to 20% and Long-Term Capital Gains (LTCG) tax from 10% to 12.5%. However, the exemption limit was also increased from ₹100,000 to ₹125,000.

What is the significance of the Economic Survey of 2023-2024 in relation to the budget?

The Economic Survey is an annual report that provides a backdrop to the budget. It suggests that the government is concerned about the stock market turning into a bubble and becoming a source of market instability, which may have influenced the tax changes in the budget.

How does the budget affect Futures and Options trading?

The Securities Transaction Tax on Futures and Options trading has been increased, which is seen as bad news for those engaged in such trading activities.

What are the implications of the changes to the Long-Term Capital Gains tax on Non-Financial Assets?

While the LTCG tax rate on Non-Financial Assets has been reduced from 20% to 12.5%, the removal of indexation benefits means that the tax calculation will not account for inflation, potentially leading to a higher tax burden for some.

What is the government's stance on the issue of unemployment as per the Economic Survey?

The Economic Survey acknowledges the issue of unemployment and suggests that creating 7.85 million jobs per year until 2030 is necessary. It also points out that many Indian graduates lack the skills needed for employment.

How does the budget address the issue of Angel Tax on start-ups?

The budget proposes to remove the Angel Tax, which is a tax imposed on start-ups when they issue shares at a higher price than their fair market value, a move that has been praised by various parties.

What minor changes to the Income Tax were made in the budget that could benefit the middle class?

The Standard Deduction has been increased from ₹50,000 to ₹75,000, and there were adjustments to the tax slabs, which could provide minor benefits to the middle class, depending on their specific financial situation.

What are the criticisms regarding the distribution of budget allocations among different states?

The budget has been criticized for favoring certain states like Andhra Pradesh and Bihar, possibly for political reasons, while other states have been comparatively neglected.

What is the speaker's suggestion for addressing income inequality in India?

The speaker suggests that the government should focus on promoting small businesses, taxing the billionaires more, and ensuring that the growth of the middle class is prioritized.

Outlines

00:00

😠 Public Outrage Over 2024 Budget

The 2024 budget, presented by Finance Minister Nirmala Sitharaman, has sparked widespread public discontent, even among staunch supporters of Prime Minister Modi. The budget is criticized for perceived inequities, with the middle class facing increased financial pressure while the wealthy seem to receive continued benefits. The discontent is evident in social media reactions, with tweets and memes highlighting the public's frustration with tax policies, particularly those related to capital gains on assets and investments. The video will delve into the specifics of the budget, including the impact on various segments of society and the government's rationale behind these measures.

05:02

📉 Critique of Capital Gains Tax and Economic Survey Insights

This paragraph focuses on the controversy surrounding the capital gains tax, which has been increased in the new budget, affecting both short-term and long-term gains. The increase has upset investors and traders, who are directly impacted by these changes. The video script also references the Economic Survey of 2023-2024, which suggests that the stock market's high valuations could lead to instability, hinting at the government's possible motivation for the tax hikes. The summary will explore the specifics of these tax changes and attempt to understand the government's perspective as well as the public's reaction.

10:03

🏠 Impact of Property Tax Changes and Unemployment Discussion

The budget's impact on non-financial assets, particularly property, is examined in this section. The long-term capital gains tax on property has been reduced from 20% to 12.5%, but with the removal of indexation benefits, which account for inflation. This could potentially lead to a higher tax burden for those who have purchased property in the past and are now selling it. Additionally, the budget's discussion on unemployment reveals a skills gap among Indian graduates and the challenges posed by artificial intelligence to the job market. The video will provide an in-depth analysis of these issues, including the potential benefits and drawbacks of the tax changes and the government's proposed solutions to unemployment.

15:05

📉 Analysis of Tax Policies and Economic Impact

This paragraph delves into the intricacies of the new tax policies, their potential effects on various income groups, and the broader economic implications. It discusses the potential for increased black money circulation due to the new property tax rules and the impact on those who have invested in delayed real estate projects. The video will also explore the government's proposed schemes for employment support, skill development, and internship opportunities, as well as the criticism of the budget's focus on certain states and its perceived neglect of others. The summary will provide a critical examination of these policies and their potential impact on income inequality and economic stability.

🤔 Reflections on Inequality and Future Outlook

The final paragraph of the script reflects on the growing income inequality in India, with the rich becoming richer and the poor becoming poorer. It criticizes the government's focus on large corporations and wealthy individuals while neglecting the middle class and small businesses. The video will conclude with a discussion on the potential effectiveness of the new policies and the need for a more equitable distribution of resources. The summary will encapsulate the main concerns raised in the video, including the historical context of income inequality and the potential consequences of the current government's fiscal policies.

Keywords

💡Income Inequality

Income inequality refers to the uneven distribution of income among a population, where some individuals or groups earn significantly more than others. In the video, it is discussed as a critical issue in the nation, highlighting how the rich have become richer while the poor have become poorer over the years. The script points out that income inequality has worsened in the last 20 years, with the top 10% increasing their share of the country's income, which directly relates to the theme of economic disparity.

💡Budget 2024

Budget 2024 is the financial plan presented by Finance Minister Nirmala Sitharaman on 23rd July, outlining the government's revenue and expenditure for the upcoming fiscal year. The video discusses the public's negative reaction to this budget, indicating dissatisfaction with the government's financial policies and their impact on various economic sectors. The budget's implications on different taxes and the middle class are central to the video's narrative.

💡Capital Gains Tax

Capital gains tax is a tax levied on the profit made from the sale of an asset, such as property or investments. The script explains that the new budget has increased both short-term and long-term capital gains taxes, which has caused discontent among investors and those involved in the stock market or mutual funds. The changes in capital gains tax rates are a significant part of the video's discussion on the government's fiscal policies.

💡Securities Transaction Tax (STT)

Securities Transaction Tax is a tax imposed on trades made in the stock market. In the context of the video, it is mentioned that the government has increased the STT on futures and options trading, which is seen as a negative development for those involved in these high-risk ventures. The increase in STT is used in the video as an example of how the government's policies are affecting investment activities.

💡Economic Survey

The Economic Survey is an annual report on the Indian economy, presented to the Parliament before the budget. The video refers to the 2023-2024 Economic Survey to explain the government's perspective on the stock market's growth and its potential for causing market instability. The survey's insights are used to justify the government's decisions regarding capital gains taxes and market regulation.

💡Unemployment

Unemployment is the state of being without a job while actively seeking work. The script discusses the government's acknowledgment of the unemployment issue in the Economic Survey and its plans to create jobs for the youth. The video also mentions the high unemployment rate among the 20-24 age group and the challenges faced by Indian graduates due to a lack of skills.

💡Artificial Intelligence (AI)

Artificial Intelligence refers to the simulation of human intelligence in machines to perform tasks. The video mentions AI as a disruptive force for the future of work, causing uncertainty at every skill level. The script also promotes a ChatGPT course to help viewers upskill in AI, which is a practical application of the concept discussed in the video.

💡Non-Financial Assets

Non-Financial Assets are tangible or intangible assets that are not financial in nature, such as real estate or precious metals. The video explains how the long-term capital gains tax on non-financial assets has been adjusted, with the removal of indexation benefits, which affects property owners and investors. The changes in taxation for non-financial assets are a key point in the video's critique of the budget.

💡Indexation

Indexation is the adjustment of the cost of an asset for inflation when calculating capital gains tax. The script describes how the removal of indexation benefits in the new budget affects the tax calculation for property transactions, leading to a potentially higher tax burden for those selling property. The concept of indexation is central to understanding the changes in property tax in the video.

💡Angel Tax

Angel Tax is a tax imposed on start-ups when they issue shares at a price higher than their fair market value. The video mentions the government's proposal to remove this tax in the new budget, which is seen as a positive move for start-up businesses. The removal of Angel Tax is presented as a beneficial policy change for fostering entrepreneurship and innovation.

💡Income Tax Slabs

Income tax slabs are the ranges of income that are taxed at different rates. The video discusses minor changes in the income tax slabs in the new budget, which are intended to provide some relief to the middle class. The script provides examples of how the tax rates for different income levels have been adjusted, which is part of the video's analysis of the budget's impact on taxpayers.

Highlights

Public backlash against the 2024 Budget, including from Prime Minister Modi's supporters.

Increased taxes on both Short-Term and Long-Term Capital Gains, affecting investors and the stock market.

Raising of Securities Transaction Tax on Futures and Options trading.

Economic Survey 2023-2024 suggests the stock market turning into a bubble, indicating market instability.

Government's focus shift from corporate tax to income tax payers over the years.

Introduction of schemes to support employment and skill development, including internship opportunities.

Criticism of the budget as benefiting the wealthy while burdening the middle class with higher taxes.

Income inequality in India has worsened, with the rich getting richer and the poor getting poorer.

Removal of Angel Tax on start-ups, a move praised by opposition parties.

Changes in Income Tax slabs providing minor benefits to the middle class.

The government's strategy to discourage property price speculation by adjusting Long-Term Capital Gains tax on Non-Financial Assets.

Potential negative impact on those who have invested in delayed property projects.

Increased circulation of black money due to the new tax system, as people may resort to cash transactions to save tax.

Special budget allocations for states like Andhra Pradesh and Bihar, indicating political appeasement.

The Economic Survey's discussion on unemployment, suggesting the need for skill development and job creation.

Promotion of Artificial Intelligence and its potential impact on jobs across all skill levels.

Transcripts

"Even the biggest Modi supporter

is furious at the government."

"It seems like

the government is ready to squeeze money out of the middle class,

but their millionaire and billionaire friends,

are given benefits after benefits."

"Friends, look at this article.

Income Inequality in our nation

wasn't this bad even during British Raj."

Hello, friends!

On 23rd July, Finance Minister Nirmala Sitharaman

presented Budget 2024.

And the negative reaction of the public for this budget

was at a different level.

Even the biggest Modi supporter

started expressing anger against the government.

Look at these tweets.

Till 17th June, these people were saying that

they want to see dictator Modi.

By 23rd July, they started asking,

not to be treated like beggars.

Those who were saying till 9th June

"Now I can die peacefully,"

By 23rd July they started saying,

"Worst government I have seen in terms of tax issues."

Comedian Abhijit Ganguly's tweet went viral,

"If I earn money, Nirmala taxes it."

"If I spend money, then also Nirmala taxes it."

"If I don't earn or spend both

and my money is just lying in investment,

Nirmala taxes that too!"

"And the best part is, if I pay tax,

there is an additional cess on it,

so Nirmala taxes the tax amount."

These memes on the Finance Minister

went viral.

"You can't defeat me. -I know, but she can."

This flowchart also went viral, explaining this logic.

Whatever salary you get,

you pay 30% direct tax on it.

If you invest the remaining amount,

and start earning returns in the short term,

you pay 20% tax on it,

If you earn slowly, you pay 12.5% as tax

but if you incur any losses, that's completely on you.

On the other hand, if you decide to spend your money,

then under the GST Laws,

you pay 12% as tax on basic items,

18% tax on kind of fancy items,

and up to 28% tax on luxury items.

So the question arises,

is this budget really that bad?

Let's understand this in depth in today's video.

Let's start with the most criticised part.

Capital Gains tax.

This tax is levied

when you sell your asset,

like a house or land,

or when you make a profit from your investment.

Like when you invest in the stock market or mutual funds.

Capital gains tax is divided into two parts.

If you are buying or selling specified assets within one year,

then it is known as "Short Term"

and the tax that is imposed on such transactions,

it is called Short Term Capital Gains tax.

In short, it is called STCG.

But if you hold your investments for more than a year,

it is known as a "Long Term" period.

and in such cases, the tax imposed

is known as Long Term Capital Gains tax.

Or LTCG.

In this new budget, the government has

increased both these taxes.

The Short-Term Capital Gains tax has been increased by 5%.

Earlier it was 15%.

Now it has been increased to 20%.

And the Long-Term Capital Gains tax has been increased by 2.5%.

Earlier it was 10%

and now it is 12.5%.

But in this case, the government has increased the exemption too.

Earlier, there was an exemption of ₹100,000,

now the exemption is ₹125,000.

Meaning, if within the year, your profit

is less than ₹125,000,

then you won't have to pay this tax.

Now, obviously,

people who invest their money in the stock market or mutual funds,

are angry with the government

because it is directly detrimental to them.

Apart from this, people who engage in Futures and Options trading,

see this as bad news too.

A Securities Transaction Tax is already imposed on their trading.

Earlier, on Futures, this tax was at 0.0125% of the transaction value.

Now, it has been increased to 0.02%.

And in Options, earlier it was, 0.0625% of the option premium.

Now, it has been increased to 0.1% of the option premium.

But, if we look at it from the government's perspective,

what can be the justification of increasing these taxes?

The answer to this is hidden,

probably in the Economic Survey of 2023-2024.

For those who don't know, the Economic Survey is an annual report.

It is presented every year before the budget.

And it is drafted by the Economics Division of the Department of Economic Affairs

under the guidance of India's Chief Economic Advisor.

Finance Minister Nirmala Sitharaman

on 22nd July, the day before the Budget,

presented this economic survey before the Parliament.

If you look at page 65 of this survey,

it is clearly written

"If equity market claims on the real economy are excessively high,

it is a harbinger of market instability

rather than market resilience."

In simple words,

they are saying that

the stock market is turning into a bubble.

And if the market claims are too high,

it leads to market instability.

It's interesting to note that

till now, whenever the government was criticised

on issues like the economy, unemployment, or inflation,

they told people to look at the stock market

and how high it is moving.

Presenting the growing stock market as an indicator of development in our nation.

But now they are saying that

the growth of the stock market is not an indicator.

If the stock market is growing excessively,

then it can cause market instability.

Clearly, the government wants to discourage this.

Especially Futures and Options trading,

which, in my opinion, is a risky venture.

Many people who do not understand this properly,

lose hundreds of thousands of rupees of their life savings,

in their greed for more money.

Another interesting part of this Budget was that

in its Economic Survey, the government,

discussed the problem of unemployment in detail,

and suggested some solutions.

They said that till 2030,

they'll need to create 7.85 million jobs every year,

On page 158 of this report,

they admitted that every one out of two Indian graduates,

is unemployable because they lack sufficient skills.

According to CMIE data,

the unemployment rate in the 20-24 age group,

reached 44.49% in early 2024.

This report talks about Artificial Intelligence too.

It mentions how Artificial Intelligence

leads to a lot of uncertainty.

And at every skill level.

Irrespective of low-skill level worker or high-skill level worker,

there's uncertainty about everyone's job with the advent of AI.

It clearly mentions that

"(AI is the) biggest disruption for the future of work."

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Now, getting back to our topic,

if you aren't supposed to invest in the market,

you have other assets like gold and property.

These are known as Non-Financial Assets.

Whether it is a piece of land, a house, or an apartment,

the LTCG tax imposed on Non-Financial Assets,

at the first glance,

it seems like the government has reduced it actually.

Earlier it used to be 20%,

now it is only 12.5%.

You might think it's good news.

But along with this,

the government has removed the indexation benefits on it.

Indexation means that

the capital gains tax on your property's transaction

will be computed after accounting for inflation.

That is, if you had bought a house worth ₹2 million 20 years ago,

by adjusting inflation,

today, the value of that ₹2 million,

is ₹6 million,

then you will have to pay a lower LTCG tax

because ₹6 million will be considered your baseline or cost of acquisition.

That will be used to calculate your present day profit.

This is called indexation.

But if indexation is removed,

then the ₹2 million you paid,

will be taken as the cost of acquisition without inflation,

that will be the baseline,

and you will have to pay LTCG tax on the entire extra amount.

One reason why the government is doing this can be

that the government does not want speculation in property prices.

Do you remember this Manoj Tiwari interview?

"The value of every house in this area,

has increased twofold."

Manoj Tiwari gave an interview during the elections,

where he was happily saying that

after Modi 3.0

he would increase the value of properties in his constituency by 2 to 3 times.

-"But this will be wrong." -"Why?"

"Because if someone migrates from the East,

they won't be able to afford these houses."

"Maybe I'm getting confused a bit."

For people like Manoj Tiwari, this would be beneficial.

People who have so much money that they could buy multiple properties,

and they sell these properties for their businesses,

they get huge profits from this.

But what he forgot to consider is that

the lower middle class people

who do not own properties,

who want to buy a house for themselves,

who want to buy their first home,

this will negatively affect them.

Because from their perspective,

the property prices are increasing so much that

they cannot afford to buy a house.

Here too, when property prices become overvalued like this,

it is known as a Real Estate bubble.

So the government wants to discourage investment in property.

But whether you will benefit or not from this,

depends on your personal situation.

Because there are numerous rules that have to be considered.

Like the government has made a rule that

if you bought your property before 2001,

then you will get the indexation benefits.

But after that, you won't.

Now the exact benefit of this tax reduction,

decreasing it from 20% to 12.5%

and the loss from the removal of indexation benefit,

whether you will benefit or lose from it overall,

let's understand this with an example.

Assume that you paid ₹2 million for a property in 2004.

Adjusting the cost for inflation,

the value of that ₹2 million would be ₹6.42 million today.

How was this calculated?

By deciding the CII value.

CII is the Cost Inflation Index

which calculates the annual inflation of asset prices.

Every year, the Income Tax Department

publishes the CII numbers

and 2001 is taken as the base year.

In 2004, when you bought the property,

the CII value was 113

and 2024's CII value is 363.

363 divided by 113 is 3.21.

And if we multiply this number

with your cost of ₹2 million,

to calculate the inflation-adjusted value of your house today.

Now, how much does this house sell for?

According to the Centre for Social and Economic Progress studies,

housing prices in India have increased by an annual rate of 9.3%

between 1991 and 2021.

If we assume this trend,

then the selling price of this house will be ₹12.4 million in 2024.

That means you bought a property in 2004 for ₹2 million,

and you are selling this property in 2024, for ₹12.4 million.

First, let's compute your tax obligation under the old system.

Indexation will be considered under the old system,

so ₹12.4 million minus ₹6.42 million will be

approximately ₹6 million.

On this, LTCG tax will be levied at 20%,

which will be around ₹1.2 million.

But under the new system,

there are no indexation benefits,

so ₹12.4 million minus ₹2 million,

will be ₹10.4 million.

On this, the new LTCG tax will be levied

at 12.5%,

which will result in your overall tax obligation of ₹1.3 million.

This is a realistic example with realistic prices.

In this specific case, you can see that

there is a loss of about ₹100,000

because of the introduction of the new system.

Many people have expressed their concern that

because the new system is so detrimental,

people will start dealing in cash to save tax,

which will result in increased circulation of black money.

And the ones who stand to lose the most will be

those who have invested in delayed projects in the last 23 years.

There are many housing projects and societies

where people bought apartments

that weren't built.

They got delayed for 5-10 years.

And unless the price of those properties increase drastically,

these people will suffer even more losses.

The only benefit of this policy that the government can expect is

that the speculation in property prices will reduce.

Property prices will not increase exponentially.

And perhaps the lower middle class people

will get a chance to afford a house.

Next, we come to Angel Tax,

the tax that is imposed on start-ups

whenever they issue fresh shares

at a higher price than the fair market value of their company.

In the new budget, the government has proposed to remove this tax.

This is a good decision.

In fact, this decision was praised by opposition parties as well.

Congress leaders claim that

they were demanding this for a long time

and in fact, it was written in their manifesto too.

Talking about Income Tax,

there were minor changes in it,

that will be beneficial for the middle-class on a small scale.

For example, the Standard Deduction has been increased from ₹50,000 to ₹75,000.

There were some changes in the slabs too.

Earlier, annual income of ₹300,000-₹600,000 was taxed at 5%.

Now, up to ₹700,000 you will need to pay at 5%.

Similarly, the 10% tax rate slab was for an annual income of ₹600,000 - ₹900,000.

Now, it will be for ₹700,000 to ₹1 million

And 15% was charged for ₹900,000 - ₹1.2 million

Now, it will be for ₹1 million - ₹1.2 million.

The remaining tax rates have not changed.

How much will you benefit from this exactly

depends on your deductions

under Section 80D, 80TTA, and 80TTB.

Your exact annual income.

But generally speaking,

for a middle-class citizen,

this will provide a negligible benefit.

If you compare this step with the previous governments',

with this interesting chart published by the Mint.

Between 2006 and 2012,

the number of times the 0% and 20% slab rate was increased to help the middle-class.

But these slabs weren't changed by the government in the last 12 years.

It is a similar scenario for the Capital Gains tax too.

Did you know that in 2004, when Dr Manmohan Singh became the PM,

the LTCG tax was at 0%?

It was only in 2018,

that the Modi government reintroduced this tax.

This has now been increased to 12.5%.

This is another major issue on which the government is criticised.

because if your annual income is more than ₹1.5 million,

then the maximum tax rate for you will be 30%.

But on the other hand, if someone else

earns more than ₹10 million,

the same 30% tax rate is applicable.

While in reality,

one of them is a proper millionaire

while the other is only a middle-class or upper middle-class person.

Numerous times people and opposition parties

have called the Modi government as Adani-Ambani government.

This is the reason behind that.

It seems like the government squeezes the middle-class for every penny,

while their millionaire and billionaire friends,

are given benefits after benefits.

This is evident in another data point.

In the Budget document we can see that

of the revenue of the government

19% is from Income Tax,

18% from GST,

and merely 17% is from corporate tax.

Look at this graph,

it wasn't always like this.

Before 2014-15,

the majority share of government's revenue

was actually from corporate tax.

That is, the tax imposed on the companies.

Slowly, the government

has been reducing corporate tax over the years.

Instead, it has focused more on collecting taxes

from the income tax payers.

The Finance Minister has talked about 5 schemes

for which they've set aside an outlay of ₹2 Trillion.

First is the First Time Employment Support.

Those who join their first job

and are registered with the Government's EPFO,

can get up to ₹15,000 from the Government.

Second, in the manufacturing sector, specifically,

it has provided for more benefits to both the employees and employers.

Third, Employer Support has been provided

to encourage employers to hire more employees,

and the government will contribute up to ₹3,000 per month for two years

in the EPFO on behalf of the employers.

Fourth, the government has promised to launch a Skilling Scheme

to help 2 million youth to become skilled in the next five years.

The fifth and most interesting scheme,

the government has promised to provide internship opportunities

for 1 million youth

in the top 500 companies

for 12 months.

This point is interesting because

the same thing was mentioned in Congress's manifesto.

Providing internship opportunities in top companies.

This scheme was favoured by both parties,

and is a positive step.

Now, it remains to be seen,

if and how well will these schemes be implemented.

You can already see such statements by the Finance Minister from 24th July,

that the Job Schemes will not be compulsory for companies,

rather, they would be merely a nudge.

How many companies will actually implement these?

That is a major question.

Apart from this, sectors like Roadways, Railways, Education, and Healthcare,

and their budget allocations,

has been discussed in my previous video,

when the government announced the Interim Budget in February.

You can go watch that video.

And finally, we come to the last point

which is again being criticised a lot

is the distribution of money among different states.

In this budget, the government

took special notice of the states of Andhra Pradesh and Bihar

and allocated a lot of money for them,

in comparison to other states.

₹150 billion have been allocated for the capital of Andhra Pradesh

for the development of Amravati.

Though the Andhra Pradesh elections are over,

elections in Bihar are yet to be held.

So, the budget allocation for Bihar is at the next level.

The government will spend ₹600 billion on different infrastructure projects in Bihar.

Building expressways, power plants, heritage corridors, new airports,

and ₹115 billion are being given to the state,

for flood mitigation.

Apart from this, under the Tourism Budget,

Bihar will be getting the biggest share.

Vishnupad Mandir of Gaya

and Mahabodhi Mandir in Bodh Gaya,

will be given world-class facilities and tourism infrastructure,

as per the Finance Minister.

It is extremely clear that BJP

in its minority government,

is doing its best to appease its allies TDP and JDU

by allocating so much money to these two states.

This is why the Leader of Opposition, Rahul Gandhi

called this budget a Seat Conservation Budget.

In the past, the BJP government used to favour

the states of Gujarat and Uttar Pradesh like this.

While the other states were ignored.

But now the focus has shifted

to Andhra Pradesh and Bihar.

Many memes were made about this

as you can see on the screen.

As a conclusion, I would like to

show you this chart of the growing income inequality in our country.

Here, you can see how over the years,

the rich have become richer

and the poor have become poorer.

And in the last 10 years,

in fact, in the last 20 years,

this situation has kept on worsening.

The share of the top 10% in our country's income kept on increasing,

while the middle-class's share

kept decreasing.

To address this issue,

it's important that the government focuses on the growth of the middle-class.

Small businesses needs to be promoted

instead of promoting large corporate companies.

Their billionaires friends should be taxed more

instead of the middle class people.

I fail to understand the problem

of why the government cannot tax the billionaires more.

In their ₹50 billion weddings,

maybe they'll spend ₹1 - ₹2 billion less.

They won't be able to afford 1 or 2 airports across the country

and we might be able to save 2-3 jungles.

What's the harm?

Look at this article, friends.

The income inequality in our country

hasn't been so bad even during British rule.

Can you imagine that?

Only the future will tell us

if these new government policies

will make things better or worse.

If you like the video,

you will find the link to the ChatGPT course in the description below.

And if you want to understand Artificial Intelligence better,

you can click here to watch this video.

Thank you very much!