An Analysis of the Drawbacks of the Union Budget 2023-24 and Its Impact on Different Sections of Society

The Union Budget 2023-24, presented with the intention of reforming the tax regime and addressing socio-economic challenges, has been subject to various criticisms. While the move towards a more streamlined tax system could lead to greater efficiency and transparency, some sectors of the population, particularly the poor and unemployed, have raised concerns about potential drawbacks. This analysis delves into the main shortcomings of the Union Budget 2023-24 and its impact on different sections of society.

Exemptions in the New Tax Regime

According to experts, the present exemptions in the current tax regime will be reviewed and gradually phased out in the new tax regime. This move is aimed at simplifying the tax system and ensuring a more equitable distribution of tax burden. However, the gradual phase-out of these exemptions poses several challenges. With the removal of exemptions, the total taxable amount will be higher as compared to the old tax regime. This could have a significant impact on various sections of society, especially those who are already struggling to make ends meet.

Impact on Farmers and Educators

One of the most critical concerns raised is the potential adverse impact on farmers and those with at least a qualified education. The Union Budget 2023-24 is expected to focus on addressing the needs of these sections, but the gradual phase-out of exemptions may leave them at a disadvantage. Farmers, who are already struggling with low yields and fluctuating market prices, might find it difficult to cope with an increased tax burden. Similarly, qualified educators, who contribute significantly to the development of society, may face financial challenges, especially if they rely on tax exemptions for financial support.

Government Services and Public Health

State governments have been urged to take immediate action to provide essential services, including health and education, which are crucial for the betterment of society. Even during the pandemic, certain leaders, such as Naveen Patnaik, have demonstrated effective leadership in supplying oxygen to needy states, while others like Dravikumar have gained recognition for their contributions. The current discourse in political circles often revolves around service dynasties and political affiliations, which could overshadow the need for effective public service and welfare programs.

Healthcare and Education: Basic Needs for the Struggling Population

With more than 6 lakh deaths attributed to Kovid-19, the wellbeing of the affected individuals and their families remains a pressing concern. While state governments are expected to provide essential services, the focus should be on providing adequate healthcare and quality education to the population. The lack of focus on these basic needs could have long-term implications for the health and future of the nation. Advocates argue that state-level initiatives and policies could be more effective in addressing these needs, as they are often more attuned to the local context and requirements.

Conclusion

The Union Budget 2023-24 presents a mixed bag of reforms and challenges. While it seeks to streamline the tax regime and ensure a more equitable distribution of tax burden, the gradual removal of exemptions could have adverse effects on certain sections of society. It is crucial for the government to consider the needs of farmers, educators, and other marginalized groups and ensure that their basic needs are met. Public health and education remain critical areas that require government attention and investment to build a more resilient and prosperous society.

Key Takeaway: The Union Budget 2023-24 needs to balance tax reforms with the well-being and needs of different sections of society to ensure a more inclusive and equitable economic environment.