Many blame the Modi Govt of ignoring Middle Class, but the truth is otherwise!

Many blame the Modi Govt of ignoring Middle Class, but the truth is otherwise!

Who is the most important God among the Holy Trinity of the Hindu 
Religion? There can be various answers with various explanations to this 
question but one thing which no one can deny is that it is Lord Shiva who  
is the most selfless. He lives in caves and snow clad mountains, wears 
tiger skin as cloth, the only ornament he adorns is Nagraj Vasuki and he  
consumed the Deadly halahala which came out during the churning of 
the Ksheer Sagar. He still holds that Halahala in his throat and never 
spills it out as that will lead to the destruction of this world.

In India, it is the Middle Class that behaves as the Lord Shiva of Indian 
Economy. They get angry very quickly, they get pacified very quickly and 
are completely selfless in their service towards the Indian economy. The 
moment they refuse to take the Halahala of the Churn of Indian economy 
and refuse to pay taxes, this country will be destroyed.

A Proud Hindu like Prime Minister Narendra Modi has recognized this 
contribution of the Lord Shiva of Indian Economy. He has taken various  
steps to ease their difficulties. From the ease of living to the reduction of 
Taxes to controlling inflation to widening the tax net (So that number of 
people paying taxes to increase while tax per person reduces), he has 
taken a lot of steps. Here we will discuss a few of those steps taken.

Controlled Inflation:

Do, we remember the rising Inflation under UPA government? Even 
Congress leaders accept that they were unable to control Inflation under 
their regime. Let us have a look at something which was accepted by none 
other than the Right-Hand man of Sonia Gandhi, Sri Ahmed Patel.

Basically, he wanted to attack the government on the so-called farm 
distress but ended up exposing his own party and its misdeeds. 
This leads to another question, do you know what was the actual rate of 
Price Rise under the UPA government?

Consistently high inflation, many times even in double digits was  
weighing the common citizen down in the rule of the previous 
government - be it inflation or specifically food inflation. But with 
effective economic management and policy interventions by PM 
Narendra Modi’s government, inflation has been controlled and the daily 
life of people has eased.

To give a perspective, the average food price inflation for the period 
between 2012-14 was 10.65% and it came down to 4.67% in the period 
2014-18, under Prime Minister Narendra Modi led NDA government.  
Also, if a plain monthly comparison is made, the food inflation was 
16.65% in November 2013 and it is meagre 0.51 % in September 2018. 
The average retail inflation in the four years of Modi government is just  
4.7%, which is about half of the 9.8% it was during the last four years of  
the UPA government. This in itself ensures better savings under the Modi 
Government as compared to the UPA government.  

An Article in The Times Of India dated 16th May 2012, has completely 
exposed the high prices under the UPA government and how they were 
unable to control the price rise. Those who want to read it can read it  

Did you notice how the prices of daily household goods used by the 
Middle class was rising uncontrollably? This also holds true for fruits 
apart from cereals and vegetables.

Just compare it with the Modi government and you will realize that not 
only the prices have been kept under check but also, prices of many 
essential commodities like Rice, Atta etc have been brought down. 

Reduced EMI Burdens:

The middle class of India is the most aspirational class and has a lot of 
dreams that it wants to fulfil. Do you know how the Modi government has 
helped them in giving wings to their dreams? The better economic  
management of the Modi government has led to reduced Interest rates 
on loans taken by them. The rate of interest on home loans is around 
8.3% as of September 2018, as compared to 10.3% in November 2013, 
during the UPA era. Similarly, the interest on educational loans has also 
come down to around 10.5% as of September 2018, from the UPA era 
interest rate of 14.75% in November 2013. This move has resulted in 
lower EMIs and increased savings for the common citizens. 

Another shot in the arm for an aspirational middle class household’s 
dreams of owning their own house is the interest subvention scheme 
(CLSS) scheme of the Modi government. Now, you directly get a subsidy of  
more than INR 5 Lakhs leading to this much amount of savings while you 
own your own house under the Pradhanmantri Awas Yojna Urban. 
The Aspirational Middle Class also wants its children to study well so that 
they can get into good jobs and further play a greater role in shaping up 
the economy of the country as their sanskaras have taught them to pay 
taxes after getting into a job. The Modi government has realised this and 
hence, it has also reduced interest rates on educational loans by a 
whopping 4%. Below are the Interest rate for a Home Loan taken 
through SBI.

Did you notice the annual savings a middle class does under this 
government? Another boost to the dreams of the Middle class. 
Tax Reduction for the Middle Class – Income Tax and GST. 
This is one area which needs closer scrutiny as a lot of propaganda has 
been built around this particular issue saying that the current  
government has not provided any tax relief to the Middle class. Nothing 
can be farther from the truth.

The Modi government knows that the Middle class is the backbone of the 
nation, they are the Lord Shiva of Indian Economy holding up the 
halahala in their neck. Therefore, the government has taken several 
measures to ease the tax burden on citizens. 

A Tax Paying citizen with an annual income of Rs 5 lakhs is now paying a 
tax of around INR 5200 while during the previous regime, it used to pay 
around INR 18,540. This is a straight savings of INR 13,340. Same goes for 
a middle-class household with a salary of INR 10 lakhs. Earlier they used t
o taxes of INR 1,10,210 while now they are paying taxes to the tunes of 
INR 75,400 which is again savings of INR 34,810. 

Let us now talk about a topic which everyone loves to talk but no one 
actually understands, The Goods and Services Tax (GST). 
Do you know that with the rolling out of the GST, a middle-class 
household is saving around INR 320 on a monthly spend of around INR  
8400? You may want to know more about the same here: 

The tax on a restaurant’s bill is now a meagre 5% GST with no other 
hidden taxes, as opposed to the earlier range of 13-28% taxes that had to 
be paid. Do you know that taxes on all the essential commodities have 
been reduced now. It is only the Luxury items that invite a high tax rate of 
28% and these are only 35 items in total. You may want to read more 
about it here:

Apart from these tangible benefits for a Middle Class, there is this entire 
paradigm of ease of living.

Cannot we notice the ease with which one gets a passport now? Or how 
cheaper it is now to have air travel under the UDAN Scheme. Even the not 
so well to do Middle-Class household can now dream of air travel. Add to 
it the reduction of Stent prices or Cheaper Medicines through the Jan 
Aushadhi Scheme or the Digital Services leading to further ease in 
financial transactions. There are many such benefits like these which 
lead to ease of living, an abstract benefit which is not as tangible as those 
listed above.

All in All, the Worship of the Lord Shiva of the Indian Economy has always 
been a priority of this Government and it has not only tried its best to 
provide Tangible benefits, but also Non-tangible ones.