People don't want a populist Budget: ET-RICS survey

NEW DELHI: Contrary to the general belief that a populist Budget is much in demand, people want Finance Minister Arun Jaitley to present a balanced Budget, according to the findings of the ET-RICS Pre-Budget Survey. In response to the question—What kind of Budget do you want?—70 per cent wanted a balanced Budget while 15 per cent each chose a populist and a stiff Budget.

When there is the buzz that Budget 2017 might aim to please the poor and the middle class, mainly to assuage the demonetisation-hit masses and in view of upcoming Assembly elections in five states, the ET-RICS Pre-Budget Survey throws up some counter-intuitive findings.



Most people think taxes rather than politics would influence the Budget. In response to the question—What will influence Budget 2017 the most?—40 per cent said it would be the need for tax reforms. 22 per cent said it would be the post-demonetisation problems while 20 per cent said upcoming Assembly elections in five states would influence the Budget. 16 per cent thought it would be the economic slowdown.



Voting for a balanced Budget doesn't mean people don't expect sops. People expects the government to raise income tax slabs, lower service tax/provide relief on some services and leave capital gains tax untouched. Businessmen and salaried people differ in their expectations from income tax. While majority from business class expects administration to lower tax rates for various slabs, bulk of office-goers anticipate tax slabs to be raised.



The expectation of the Budget driven by the need to reform taxes can be the result of an urban skew to the online survey. Most of the people surveyed expected relief for those who pay more taxes. 42 per cent expected income tax slabs to be raised while while 22 per cent expected tax rates for various slabs to be lowered. Only 27 per cent said basic exemption limit could be hiked, a step that would benefit the lowest tax-payers.

Interestingly, proportion of people who feel that demonetization discomfort would sway the Budget decreases with age. Most people who count demonetisation to impact the Budget—33 per cent—fall in 18-24 age group.


People's expectations of rise or fall in prices of goods indicates a general preference for basic goods and necessities to become cheaper and luxury and indulgence goods to become dearer.