Common Man's Guide: StockGro founder Ajay Lakhotia reveals key Budget insights

livemint.com:

Ajay Lakhotia: Nahi, aisa nahi hai (No, it’s not true). Think about this – what are the three most important things in our life – first, roti (food), second, kapda (clothes), and third, makaan (shelter). And then there are more important things – Instagram profile, number of followers, number of likes.

So, anything that impacts this should be important to us. With the budget, all the influencers will now be putting out posts, then the like count will increase, and then the number of followers will increase. But let’s look at more real things – budget also influences everything from how much we pay for our groceries, fuel for our car, to how much taxes we pay, and more importantly, how much subsidies each and every industry gets.

So, it is actually very important for every common man to understand the impact of the budget on them. Ajay Lakhotia: Think of the Indian Government as the largest venture capitalist deciding where to invest the capital for the long term. In fact, it is the largest investor in the economy – redistributing the capital to the sectors for economic growth.

In short, every year the government plans its financial goals by trying to balance its income and investments. For every Rs. 100 that the government earns about Rs.

30 comes from income & corporation tax, another Rs.30 comes from borrowings, Rs. 28 comes from GST, customs &excise duty, and 12 from other sources! From this 18 percent goes to States for planning their expenses, 20 percent goes on interest payments, on the borrowings, and after other expenses approximately 17 percent is used for central government schemes and another 45% on pensions, subsidies & other commissions. Ajay Lakhotia: That is true.