Budget 2016: Congress gives thumbs down to union budget

The oppposition party, Congress on Monday gave a thumbs down to the Budget proposals for 2016-17, saying most of the proposals would lead to a shrinking of the Indian economy.

"The budget presented by the Finance Minister is high on rhetoric, flawed on comparisons. It is bereft on any ideas, it lacks imagination. It constrains the freedom of the central bank and in totality it is a dead scud," Congress leader Manish Tewari said.

"The markets have given the budget thumbs down, so therefore, Finance Minister has revealed a piece of rhetoric which would ultimately contribute in shrinking the Indian economy," he added.

Finance Minister Arun Jaitley on Monday presented the General Budget for the next fiscal, amid concerns over stagnating growth, the state of government finances and stuttering pace of reforms.

"I am presenting the budget when the global economy is in crisis," Jaitley said in his opening remarks, adding that India, however, remained the bright spot in this gloom, turning difficulties into opportunities.

He said India's growth has expanded 7.5%, despite slowdown in exports, even as inflation had eased, bringing big relief to the general public. He also said foreign exchange reserves were robust.

While making no change in personal Income Tax slabs in the Union Budget 2016-17, Finance Minister Jaitley announced additional tax relief of Rs 50,000 for first time home buyers for up to Rs 35 lakh loan provided house cost does not exceed Rs 50 lakh.

Jaitley also announced to hike House Rent Allowance (HRA) deduction limit from Rs. 24,000 to Rs. 60,000 per annum for rent payers.