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Budget 2015: Myth Busted

On 28th February finance minister Mr. Arun Jaitley presented his first (for full year) Union Budget. He finished his budget speech with the lines: "Sarve Bhavantu Sukhina......". These lines are actually the summary of the Union Budget 2015. As soon as he finished his speech there was huge uproar in the media and social networking sites. The corporate sector applauded the budget while the common people were shuffling the various news channels to gain an insight into the budget!! It's true because majority of the people in India understands this vital document of Indian economy through the lens of media and various experts in the panel.

 Media created the myth that Budget has nothing for the middle class!!

First we need to understand the definition of "middle class". In India the majority of the population falls under this category. The size is so large with diverse characteristics that it needs to be classified into three categories:

  • Upper Middle Class
  • Middle Class
  • Lower Middle Class 

I am not going into the details of the classification. But these are the basic characteristics of the middle class:

  • No life insurance.
  • Lacks social security measures

This Union Budget has empowered the middle class by presenting before them the opportunity to have a life insurance of Rs. 2,00,000 per month with the annual premium of Rs. 12 only. It is really a significant step. This is the feature of a developed country where majority or say nearly all the population is covered under the life insurance.

The proposed Atal pension yojana will ensure that the middle class is able to retire happily. Government will contribute the same amount that you will contribute in your pension plan and after the age of 60 years, you will receive the pension. Look out for the declaration of the yojana.

These two schemes of the budget surely makes it pro-middle class budget.

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