No shocks

There are no shocks; that is a positive aspect of the Budget for 2010-11. Perhaps, that is why the stock market has responded positively initially. The salaried class will definitely welcome the gesture of increasing the basic exemption limit for income-tax by Rs 20,000, though it is very small in the present era of continuous price rise in all commodities.

Likewise, reducing the age criteria for senior citizens from 65 years to 60 years is welcome and will bring in uniformity with the classification being followed by banks.

Rewarding prompt repayment of farm loans by offering 3 per cent interest concession to agricultural borrowers is a welcome move. This will encourage farmers to stick to repayment, thereby ensuring smooth flow of farm credit thereby activating agricultural sector.

Providing 1 per cent interest subsidy to housing loans up to Rs 15 lakh (project cost up to Rs 25 lakh) will bring in smile on the face of several home aspirants. If the builders and developers too, reduce the price so as to benefit the millions of aspirant of low cost houses, housing sector, definitely will get a stimulus.

B. N. Bharath

Bangalore

Too meagre

In view of the unabated inflationary pressures, the Finance Minister's proposal of raising the tax exemption limit from Rs 1.60 lakh to Rs1.80 lakh appears too meagre. When the money value is eroding so fast, such a piecemeal approach on this vital matter affects the fixed-income earners, especially the salaried class. There is a need to review the tax exemption limit so that the disposable income left with the salaried class, especially in the lower and middle levels, is adequate to manage the family budget.

Overall, though, Mr Mukherjee has achieved a fairly good balancing act in the midst of several contradictions in the economic system.

H. M. Dash

e-mail

Hopes belied

The Budget is unrealistic. It has not responded to the aspirations of the aam aadmi . No concrete action plan has been proposed for the reduction of prices, checking inflation, seizure of black money, etc. Moreover, the sops given for more cold storages to be set up will only benefit the same bunch of wholesalers (otherwise called ‘black-marketers').

The concept of cash subsidy for kerosene, etc., is just a myth, thanks to the corrupt political administration.

Though a small increase in the income-tax slab for the salaried class has been proposed, the same has not been passed on to the women's work-force.

The statement on introduction of Bills to further liberalise insurance, banks, pension, etc., are also against the wishes of the working classes. The statement is also a self contradiction to the Prime Minister's and the Finance Minister's claims made during the recession period that “our fundamentals are strong because of the presence and dominance of the public sector in the Indian financial sector”.

J. V. L. N. Murthy

Vijayawada