Budget and a middle-class family

Chief Minister H D Kumaraswamy presented his budget on Thursday, essentially an extension of the previous government’s schemes plus the much-awaited farm loan waiver.

While it brought cheer to farmers, it came with an increase in prices of fuel, power and liquor. Metrolife spoke to a family of four to understand how its monthly budget would be impacted.

Fuel

What changed: The budget proposes an increase of taxes on petrol and diesel. Their prices go up by Rs 1.14 and Rs 1.12 per litre, respectively.

“People taking their car or bike to work will still continue to do so. There was a time when fuel prices touched almost Rs 80-82 but people still took their cars out because they couldn’t rely on public transport,” says Srikanth.

The alternatives don’t look encouraging. “I love traveling by the Metro but connectivity is limited. They have announced more Metro lines and I hope this happens soon. In that case, I will stop using my car.”

He finds buses too crowded and not convenient enough. He doesn’t mind spending a little extra to reach his destination comfortably and in time.

Srikanth is concerned about the cascading effect fuel diesel prices will have on vegetables and fruits.

Groceries

Speaking of vegetables, the family will still continue to buy the same quantity. “If we are buying 1 kg of tomatoes now, we will continue to do so,” says Srikanth.

However, if the price sees a drastic change, they may cut down. “There was a time when the prices of tur dal shot up. We then used substitutes like masoor dal,” says Jacqueline.

Electricity

What changed: The cost per unit of power has shot up from 10 paise to 20.

What they say: “We pay an electricity bill of Rs 1,000-1,500. Since that will almost doubled now, we will have to be more cautious. We have to take care to switch off the TV and lights when not in use,” says Srikanth.

Eating out

The family does not eat out regularly. “Restaurant bills have gone up by about 30 per cent with GST and service charge. There should ideally be no service charge but they collect it. So we think twice before eating out, especially in fancy restaurants,” Srikanth says.

For a working couple with no time to cook, the impact will be harder, he says. “The same goes for alcohol. If you have it once in a while, the increase will not stop you. But if the frequency is more, say weekly, you will probably cut down,” he says.

Health care

Quality health care is a major expense for households. Srikanth wishes the government would provide better hospitals so that people can avoid going to expensive private hospitals, also perhaps do away with health insurance. “They say they are going to build super-speciality hospitals but you and I won’t go there unless the service provided is of high quality,” he says.

Education

School fees is one area where the family feels the pinch. “We don’t have a choice. We have to put our children in expensive private schools to ensure that they get quality education; you can’t compromise here. Either the government should intervene or provide quality education in its schools,” says Srikanth.

Schooling isn’t just about fees, says Jacqueline. “Children these days expect more. There is so much peer pressure and competition that when your children ask for something, like a new phone, you don’t want to deny them,” she explains.

What takes away a big chunk of their budget

House rent, school fees, electricity, phone and Internet bills.

What they liked in the budget

“The introduction of English language as a medium for teaching in government schools. It gives a chance to these students to be employable in the private sector. I do the hiring for my team and a lot of youngsters with great academic scores are unemployable because they are not able to articulate what they have read and understood,” says Srikanth.

What about savings?

“Things like sanitisers and air conditioners were a luxury earlier but are now necessities. However, I think we won’t change our lifestyle a lot even with the increase in expenses,” says Srikanth.

“We spend so much of our time earning an income. All of it just goes towards paying rent and bills. Saving money is difficult for many now,” observes Jacqueline.