New Delhi (PTI) In a pro-poor, pro-rural budget, Finance Minister Pranab Mukherjee on Monday raised personal income tax exemption by at least Rs 10,000, abolished IT surcharge and Fringe Benefit Tax, while focusing on jobs, cheap food for poor and loans for farmers.
In a budget that fulfills a number of Congress' poll promises while battling the pressures of global slowdown, Mr. Mukherjee focused on infrasturutre and agriculture sector to push economic growth to nine per cent.
The industry welcomed the budget, saying it is a job well done given the trying circumstances, but had reservations on the hike in Minimum Alternate Tax and absence of details on disinvestment programme. The stock markets reacted strongly and tanked about 900 points on the issue of 6.8 per cent fiscal deficit, the highest in 18 years, and lack of sops for areas like housing, steel and infrastructure.
Mr. Mukherjee raised the personal income tax exemption by Rs 15,000 for senior citizens (above 65 years) and by Rs 10,000 for others including women and abolished FBT that would help employers in giving more benefits to employees.
The budget, providing for an expenditure of Rs 10.20 lakh crores, kept the corporate tax, customs, excise and service tax rates unchanged but changes in specific duties would make gold, silver and textile products costly, while making LCD TV and branded jewellery cheaper.
It also provides for 25 kg rice and wheat for poor at Rs three a kg, a guaranteed minimum Rs 100 a day rural job, a national electronic job exchange and over Rs 71,000 crore provision for the social sector scheme.
