Baghel dubs budget disappointing, BJP calls it revolutionary

The ruling Congress in Chhattisgarh termed the Union Budget as "disappointing", while the BJP hailed it as a "revolutionary" step that ensures a bright future for the country.

Finance Minister Nirmala Sitharaman Friday presented the maiden budget of Modi 2.0 government that proposes to hike tax on petrol and diesel and raise the import duty on gold, among other measures.

The budget levied additional surcharge on super rich and brought a tax on high value cash withdrawals as Sitharaman sought to spur growth with reduction in corporate tax and sops to the housing sector, startups and electric vehicles.

Slamming the budget, Chief Minister Bhupesh Baghel said, "This budget is very disappointing. It has failed to provide any relief to the middle class, farmers, youth, women and minorities."

"Hike in cess on petrol and diesel will increase the prices of these fuels, thereby triggering inflation. Middle and lower class will be adversely affected with this move," he claimed.

 

The budget for 2019-20 neither provided any income tax relief to the middle class nor suggested steps to deal with the issue of unemployment, the Congress chief minister said.

Baghel said no concrete steps have been taken in the budget to double the income of farmers and used a popular idiom -- "Oont ke muh me jeera" (a small amount of cumin seeds in a camel's mouth) -- to describe the hike of Rs 65 in minimum support price (MSP) for paddy by the Centre on Thursday.

He criticised the Centre for proposal of Public Private Partnership (PPP) model for Railway projects in the budget.

"Indian Railways is one of the biggest institutions in the world which provides large-scale employment. But now people may lose jobs in Railways after introduction of PPP model," he said.

There is no mention of any special scheme in the budget for development of Naxal-affected districts in Chhattisgarh, the CM said.

Ten districts of the state have been marked as "aspirational districts", but no provision of fund has been made for their development, Baghel added.

Meanwhile, former chief minister and BJPs national vice-president Raman Singh welcomed the budget, describing it as "revolutionary" that promises a bright future for the country's.

"The steps taken by the Centre for the banking and financial sector will strengthen the economic structure of the country and put India among the world's leading economic powers," Singh said.

He termed the provisions of the budget as a symbol of universal welfare of the society and expressed confidence that under the leadership of Prime Minister Narendra Modi, India will become a powerful, self-respecting and prosperous nation.

Singh welcomed the provisions made with regards to improving taxation and those related to education and research sectors.

Sitharaman, the first full-time woman Finance Minister, proposed measures to ease liquidity crisis facing shadow banking sector (NBFCs) and providing Rs 70,000 crore capital to public sector banks while seeking to raise additional resources through privatisation of some PSUs.

In a relief to tax payers, she provided for an additional deduction of Rs 1.5 lakh on interest paid on loans borrowed up to March 31, 2020 on purchase of a house up to Rs 45 lakh.

Corporate tax on companies with turnover of up to Rs 400 crore has been slashed to 25 per cent from current 30 per cent. Presently, the lower tax rate is applicable on companies having a turnover of up to Rs 250 crore.