The chambers of commerce are of the opinion that the Finance Minister should have given more stress to the health sector and the demand for treatment of healthcare as infrastructure has been overlooked. The Indian Chamber of Commerce and Industry however has expressed the hope that the slew of measures announced by the Finance Minister will further push economic growth on the fast track. Several economists agree that it is not too populist. FICCI’s President Rajan Bharti Mittal says that the Budget is balanced and will sustain the growth momentum while giving main emphasis on agriculture and manufacturing.
However the Opposition has dubbed the Budget “futile” and “directionless” saying that it has given no relief to the common people affected by price inflation and nothing has been done to contain inflation.
Terming the Budget as “timid”, former NDA Finance Minister Yashwant Sinha said it is “completely devoid of reforms.”
CPI leader Gurudas Dasgupta says the Budget is “directionless” and does not reflect any seriousness on the part of the Government to address the issue related to unemployment or keenness to mop up additional resources and taxing rich people.
“It’s a nominal Budget with no direction. This is a directionless Budget in which no efforts have been made to raise additional resources and taxing rich people. No attempts have been made to increase employment in the Budget. It is a thoughtless exercise,” Dasgupta said.
The Opposition has some valid points while expressing their disappointment but the Prime Minister Dr Manmohan Singh, who is a noted economist turned politician, has come out openly to support the budget presented by the veteran politician. The Finance Minister had appointed him Governor of the Reserve Bank of India, the country’s, central bank in 1982 when he held the same portfolio under Indira Gandhi. It is the best budget considering all the factors and the problems facing the Indian economy in particular and the global scenario in general, the soft spoken Prime Minister has said.
The Finance Minister has defended his Budget by saying that it aims at sustaining economic growth, strengthening infrastructure, moderate rise in price particularly of agricultural produce and reduced social imbalances through inclusive development. The Budget is a transition toward a more transparent and result oriented economic management system in India. Developments on India’s external sector have been encouraging but continued high food prices have remained the government’s principal concern. He has not failed to admit that the trend reveals shortcomings in the country’s distribution and marketing system. It is true that the huge differences between wholesale and retail prices are at the expense of the remunerative prices given to the farmers and competitive prices continue.
It is appreciated that he has lowered income-tax exemption for the tax payers starting from the 1st of April, 2011, although it is not up to their expectation. He has proposed to increase the exemption limit for general category of individual tax payers by 20,000 INR to 1, 80,000 INR annually. This will provide a uniform tax relief of 2,000 INR of this category. It is also a good gesture on the part of the UPA Government to give some benefits to senior citizens. All Indian citizens who are 60 years of age and above will be treated as senior citizens and will get income tax relief. Their exemptation limit is being increased from 2, 40,000 INR to 2, 50,000 INR. However, they deserve some more concessions.
Anyway, those who are 80 years old and over will be brought under a new category called ‘Very Senior Citizens’ from the next financial year and will be given income tax exemption up to 5,00,0000 INR annually. This is a good beginning.
The Finance Minister has promised to the nation to usher in a Green Revolution in the eastern region where farmers mostly grow rice on small holdings and both yield and productivity are declining. He is justified in declaring that the Eastern region comprising Assam, West Bengal, Orissa, Bihar, Jharkhand, Eastern Uttar Pradesh and Chhattisgarh is being brought under the program to improve their rice production. For this purpose, 400 crore INR have been provided in the Budget. This program should be taken up more vigorously in the upcoming 12th Five Year Plan commencing next fiscal.

P.K. Chakravarty

 

Cheaper

·    Basic food

·    Stainless steel

·    Refrigeration system

·    Mobile phones

·    Agricultural machinery-Tractors

·    Cement

·    Gas dispensers

·    LED lights

·    Solar lanterns

·    Solar module cells

·    Hybrid fuel kits

·    Bio-based Asphalt

·    Printers

·    Paper

·    Battery driven vehicles

·    Home loans

·    Baby and Adult Diapers

·    Sanitary napkins

·    Homeopathic medicines

·    Soaparn/Raw silk

·    Cinematographic films

·    Ambulances

·    Non-branded Gold/Silver Jewellery

·    Medical syringes

·    Some Electronic components

·    Hosting Art Exhibitions

·    Equipment used in building roads and Highways

·    Pistachio nuts

·    Incense sticks

Costlier

·    Branded garments

·    Air travel (` 250 on international travel and ` 50 on domestic travel)

·    Gold

·    Hotel accommodation charging tariff above ` 1000

·    Air-conditioned Bars

·    Air conditioned private hospitals (Government hospitals exempted)

·    Life Insurance

·    Legal services