The benefits accruing to the common man are all indirect. If there is growth as the finance minister hopes it should raise incomes all around. The organised sector and industry have received many concessions, which should lead to an increase in industrial growth. Thirdly, the fact that the fiscal deficit is expected to come down from 5.1 per cent of GDP to 4.7 per cent should also help bring down inflation. This business of perks not being taxed happens only in India or some Asian countries.
Most perks are taxable in other countries.
In fact, in America there are very few perks except at very high levels of management. My view is that all income should be taxed but the tax rates should be radically reduced. There is only a marginal increase in the defence budget. Considering the security environment in our region, setting aside 3 to 4 per cent of the GDP is not really high. The government is going to downsize its staff by about 2 per cent every year or 10 per cent in five years.