The Hindu : New Delhi News : Good Budget, says Sheila; pro-rich, says Opposition

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Tuesday, Mar 01, 2005

New Delhi

New Delhi

Good Budget, says Sheila; pro-rich, says Opposition

By Our Staff Reporter

NEW DELHI, FEB. 28. The Union Budget presented by Finance Minister P. Chidambaran in Parliament today has been, by and large, termed as a good budget by the political leadership in Delhi while the Opposition slammed it as pro-rich with nothing for the peasantry. The tax reforms coupled with provision of a new deal for rural India laying emphasis on "Bharat Nirman'' has evoked a positive response among various sections.

Delhi Chief Minister Sheila Dikshit termed it as a good Budget with well thought out schemes for various categories. She applauded the provision of Rs. 5,500 crores for the National Urban Renewal Mission that would help Delhi in taking up projects like elevated roads, High Capacity Bus System, Monorail and Integrated Rail Bus Transit system.

She also appreciated the focus on women and the extra cushion given to them in shape of income tax exemption limit. "The Budget addresses the basic issues relating to various problems facing the country and the attempt is to get over them and get things going in rural India also,'' she added.

Reacting to the Budget, the Member of Parliament from New Delhi, Ajay Maken, said it had come as a boon for the middle class and salaried class particularly the government employees. "Exemption of income tax limit up to Rs. 1 lakh for all, Rs. 1.25 lakhs for women and Rs. 1.50 lakhs for senior citizens would help all the taxpayers. The consolidated limit of Rs. 1 lakh for savings that would be deducted from the income before tax is colleted is also a big step. The exemption of small service providers up to income of Rs. 4 lakh per annum from the service tax net is also a big concession and gives relief to around 80 per cent of the people."

Applauding the formation of the National Urban Renewal Mission, Mr. Maken said this had thrown up a big opportunity to cities like Delhi to capitalise on the situation and get the best out of it. Referring to "Bharat Nirman'' and giving a new deal to rural India, Mr. Maken said this consolidated the commitment made in the President's Address to Parliament where he talked about making India shine for all sections.

The Delhi Pradesh Congress Committee president, Ram Babu Sharma, termed the Budget as development-oriented and aimed at generating growth and employment. He said the focus especially on rural India, farmers, women, students and senior citizens highlighted the concern of the Central Government for various sections of society. He also hailed the hike in exemption limit and the re-phrasing of the tax net brackets that would benefit the upper and the lower middle class to a large extent. The special schemes for water supply, development of backward areas, upliftment of minorities, sanitation and health schemes were worth praising.

However, the Budget also came in for flak with the Communist Party of India (Marxist-Leninist) New Democracy terming it as routine. It said the Budget took the beaten track of reducing customs duties, facilitating entry of foreign industrial goods and machines, giving benefits to corporate houses while ignoring the plight of the poor. The Budget, it added, had no provision for taking care of peasantry that is hart hit by the new economic policies. "There is emphasis on creating more credit rather than reducing the financial debts of the poor farmers. Nothing has been done to address the problem of unemployment and the small-scale sector has been completely neglected."

The Delhi Pradesh Bharatiya Janata Party president, Harsh Vardhan, castigated the Budget for having failed to give any specific package for Delhi. The Budget, he said, would only lead to increase in prices and inflation and the people would feel the additional burden by the spread of the service tax net.

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