Letters to the editor dated February 1, 2021

From a bird’s eye view, the general Budget looks good as it focusses on healthcare, innovation and R&D infrastructure and transportation networks.

Surprisingly, Tamil Nadu got a sizeable allocation towards Metro Phase II and for improvement of Highway network. However, from the taxpayer’s point of view, it is a lacklustre Budget as there is no announcement on any categories of rise in the income ceiling limit, standard deduction or towards exemption in 80CC, etc.

Chennai

The Union Budget, though does not propose any shocks, one needs to wait and watch for the impact of the cess on petrol and diesel.

The Finance Minister should have come out with a tax-free instrument to give focus on health spending, which also would have helped the common man.

The proposal to privatise two public sector banks is surprising considering that just recently one private sector bank was rescued by a public sector bank and another by a foreign bank.

There need not be any euphoria over the Sensex clocking a gain of over 2,000 points, as it is only recouping the losses of over 4,000 points of the previous week.

Bengaluru

On first reading of the Budget, it seems extremely ambitious expenditure and infra weighted one. This cannot be faulted in these post-pandemic times. Credit must go to the government’s market friendly “hands off tax meddling” resolve. No wonder the Sensex has soared.

We now need innovative, energetic and an persuasive PM-FM combine that considers States as confidants and not adversaries for mobilising matching revenue collection and coordinated implementation.

Navi Mumbai

The Budget will certainly bring more cheer to the markets as it is friendly to all. The emphasis is on spending on infrastructure, Tailways and heathcare. The Finance Minister has not ventured into a corona cess though it is not out of place now.

With the economy improving, higher GST collection is expected and a balancing act is proposed with funds raised through disinvestment and tax collections. The government is also encouraging monetisation of assets through REITs and INVITs. As spending is the focus it has to be front ended so as to bring economic benefits through the year.

The need for another exclusive Development Financial Institution is not clear as the earlier versions have failed. Simplification of personal income tax could have been initiated and tax rates at higher slabs reduced to encourage compliance

Mumbai

The Finance Minister’s decision to go for a paperless Budget is welcome.

Further, the Finance Ministry proposes to promote its activities through extensive outreach programmes across various social media channels and PIB News Website, resulting in effective communication and better outreach.

Bengaluru

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