India Budget 2018
Finance Minister Arun Jaitley has by and large presented a balanced Union Budget. It creates room for better profitability for small, and medium term enterprises with the proposal for reduction in corporate tax rate to 25% for companies with a turnover of up to Rs 250 crore.
While there has been no revision in the tax slabs for individuals apart from Rs 40,000 standard deduction for salaried class for medical and travel-related expenses, various incentives and deductions have been provided to senior citizens. We remain optimistic on the measures being undertaken by the government and would recommend policyholders to stay invested and pay their premiums regularly to benefit from the uptick in the economic growth over the coming years.
One of the key announcements proposed is the judicious health cover of Rs 5 lakh for hospitalization under the National Health Protection Scheme, which has been regarded by the Finance Minister as the world’s largest government funded health care programme. This is a progressive move by the Government towards bringing more number of people under the ambit of health insurance. It will incentivize the common people on the need of a health insurance cover, and help boost the penetration level
The announcement of higher infrastructure spend to rev up the ailing economy is a significant move and will boost the overall economic growth.
Tarun Chugh is the CEO & MD of Bajaj Allianz Life