The Hindu Business Line : A damp squib, say Opposition parties

New Delhi, July 6 Opposition political parties termed the Union Budget as a damp squib and lacklustre on the grounds that the proposals were inadequate in meeting the challenges of the economic recession, growing job losses and declining purchasing power of the masses.

In a statement issued on Monday, Mr Rajnath Singh, BJP National President said, “The Budget has proved to be a damp squib although it promised a better deal in the Economic Survey. The Budget was expected to provide stimulus to the ailing sectors of our economy, relief to common man and outline a clear agenda for development. But the Government could not come up with any concrete or clearly defined programme to boost investment and create employment opportunities in core sectors.”

“Although the Government has increased the income-tax exemption limit by Rs 10,000, this step will hardly provide relief to people given higher level of commodity prices,” he added. The BJP, however, welcomed the withdrawal of fringe benefit tax.

Inadequate: CPI (M)

The Communist Party of India (Marxist) said that the Budget was grossly inadequate. “The total expenditure is slated to increase by a mere 2 per cent of GDP, essentially to meet non-developmental expenditures such as interest payments and implementing Sixth Pay Commission recommendations. Therefore, this Budget neither provides a stimulus for growth nor meets the needs of “inclusive growth” for the aam aadmi.”

“The series of direct and indirect tax concessions in the wake of the global economic crisis has led to the tax revenue foregone reach as much as Rs 4.18 lakh crore in 2008-09. Rather than withdrawing these concessions to enable greater resource mobilisation and spending in critical areas, the Finance Minister has chosen to extend these concessions for 2009-10,” CPI(M) said.

Clerical exercise

Ms J. Jayalalithaa

AIADMK chief Ms J. Jayalalithaa described the Budget as weak and dismissed it as a “clerical exercise reflecting the continuity of a visionless government.”

She said in a statement AIADMK had favoured total abolition of income-tax for the salaried classes. “At the very least, an increase in the IT exemption limit to Rs 5 lakh was warranted. But this is not to be,” she added.

AIADMK, however, welcomed the decision to provide below poverty level families with 25 kg of rice or wheat every month at Rs 3 a kg.