: Chief Minister Naveen Patnaik on Saturday expressed deep disappointment over the Union Budget saying Odisha was not considered for special assistance as opposed to Bihar and West Bengal.
“While the budget indicates an emphasis on the rapid development of eastern States and special assistance for Bihar and West Bengal, Odisha has been completely neglected,” Mr. Patnaik said in his reaction to this year’s budget presented by Finance Minister Arun Jaitley.
“Odisha faced two calamities in the last two years consecutively with Phailin and Hud Hud. At least on this score, Odisha deserved special status. I am shocked that this has been completely overlooked in theUnion Budget despite our repeated demands,” he said.
The Chief Minister further said, “Our tax devolution will come down from 4.78 per cent to 4.60 per cent. This will involve a loss of around Rs. 4,600 crore over a period of five years. This is because of the inclusion of new criteria such as demographic changes as per the 2011 Census and deletion of fiscal discipline.”
Odisha Congress president Prasad Harichandan said the budget is anti-people and overlooks the interest of the middle and lower middle class following the hike of service tax with no change in individual income tax exemption.
Pro-corporate approach
“The Narendra Modi government has only reaffirmed its pro-corporate approach by bringing down corporate tax rate. Besides, Union budget has prioritised political harvesting. Since elections in Bihar and West Bengal are due, these states have been given special assistance, whereas has Odisha got a raw deal,” Mr. Harichandan pointed out.
State Samajwadi Party President Rabi Behera echoed similar sentiments criticising the budget. “Corporate tax has been reduced from existing 30 per cent to 25 per cent for the benefit of corporate sector, while service tax has been raised from the existing 12.36 per cent to 14 per cent. It shows the tilt of Narendra Modi government. Middle class and lower middle class will suffer,” he said
Odisha BJP K.V. Singhdeo, however, praised the Union budget saying it is an innovative pro-poor, development oriented, growth driven budget with special emphasis on women, children, youth and senior citizens.
“This budget brings in a paradigm shift introducing the idea of social security with rebates, concessions and allocations in insurance, pensions. Public spending on infrastructure has been increased. The tax reforms leave the consumer with more disposable income thus incentivizing him to spend,” Mr. Singhdeo said.
‘Our tax devolution will come down and involve a loss of around Rs. 4,600’
