The Union Budget has received mixed response from the salaried class.
R. Pandi, Associate Professor, Government Arts College, expressed displeasure over implementation of Direct Tax Code and ‘limited benefits' to genuine tax payers. Though the Standing Committee had suggested raising the tax exemption limit to Rs.3 lakh, Finance Minister Pranab Mukherji had failed to satisfy the common man and also the salaried class by raising the exemption limit to Rs.2 lakh but at the same time he had taken away the little benefit by across the board two per cent hike in excise duty and service tax.
The proposal for a credit guarantee fund to enhance credit flow to education sector was good. Another important announcement seemed to be the establishment of ultra small branches to extend banking facilitiesin those habitations having population in excess of 2,000.