The manifestos of political parties have increasingly begun to resemble economic stimulus packages, with the Bharatiya Janata Party today promising tax relief to the salaried and total exemption from income tax for the armed forces and central para-military personnel.
The party, if voted to power after the forthcoming general elections, will abolish tax on interest earned on savings and the Fringe Benefit Tax on companies as well as employees. It will seek to lower interest on housing loans to boost the sagging fortunes of this sector.
The Congress manifesto, released on March 25, committed itself to massive public spending on employment programmes, the social sector and on schemes related to farmers.
The BJP, on its part, remains steadfast in its long-standing commitments to building the Ram temple at Ayodhya, abolishing Article 370 of the Constitution (which gives special status to Jammu and Kashmir), and having a strong anti-terror law.
There is also a promise to provide rice at Rs 2 a kg to those below the poverty line, bettering the Congress’ promise of Rs 3 a kg. It remains opposed to Foreign Direct Investment in retail.
The party promises to exempt income up to Rs 3 lakh from tax, double the current limit of Rs 1.5 lakh. For women and senior citizens, this figure will be Rs 3.5 lakh.
Both the parties say they will bring BPL families under the ambit of the Antyodaya programme, which entitles the poorest of the poor to 35 kg of grain at very low prices. The BJP will introduce food coupons to ensure proper delivery of grain.
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About the party’s promise to waive income tax for the armed forces and central para-military personnel, its prime ministerial candidate L K Advani said: “This is our tribute to the valiant soldiers, who have been always ignored.”
These forces constitute some 2 million voters. The BJP also promises to address their long-pending demands by setting up a new pay commission and implementing the one-rank-one-pension plan.
The party said it would unleash a massive infrastructure plan to generate employment and introduce a “low-tax, low-interest regime” to enable the common people to have more money at their disposal.
The manifesto promised reservation in jobs for the economically weak in the upper castes and sought to attract the corporate sector by its plans for the sectors of power, roads and information technology.
| WAR OF CLAIMS (A comparison of manisfestos) |
| EMPLOYMENT |
| CONGRESS: To extend employment guarantee scheme |
| BJP: Job creation through public sector investments in infrastructure |
| FOOD SECURITY |
| Congress: BPL families to get 25 kg rice/wheat per month at Rs 3/kg |
| BJP: BPL families to get 35 kg rice/wheat per month at Rs 2/kg |
| FOR FARMERS |
| Congress: Interest waiver for farmers who repay loans on time |
| BJP: Waive agricultural loans and set a maximum ceiling of 4 per cent for agricultural loans |
| MANUFACTURING |
| Congress: Enterprises in manufacturing (like energy, transport and telecom) to remain in public sector |
| BJP: Will give fillip to manufacturing sector by easing credit availability |
| SOCIAL SECURITY |
| Congress: Social security for households headed by a single woman, disabled or elderly; urban homeless; released bonded workers; primitive tribal groups; and dalits |
| BJP: Social security net for women; disabled and the elderly; tribals and dalits |
| DIRECT TAX |
| Congress: — |
| BJP: Will abolish FBT; ESOPs and MAT tax regime will be rationalised & made equitable. |
| INDIRECT TAX |
| Congress: To introduce GST from 1 April 2010 |
| BJP: CST to be abolished; GST will have tax rate of 12-14 per cent |