Click to play videoNew Delhi: Chidambaram has fought quite a few fires with his budget – inflation, tax woes, and spurring agricultural growth.
But in attempting to please all, the Finance Minister came under fire from many quarters.
"If ploughmen keep their hands folded, even sages claiming renounciation cannot find salvation," said Chidambaram.
He also tried to send out the message that he and his Government cares about the common man.
"I wish to reiterate Government's concern over inflation," said the Finance Minister.
And some of his proposals are clearly aimed at battling rising prices.
He has proposed cuts in customs and excise duties in products such as:
- Edible Oils
- Food processing machinery
- Steel
- Cement
Agricultural outlay has been increased and the Rural Employment guarantee scheme has been extended to 330 districts. But there's also a dose of measured populism – the FM has raised Income Tax exemption limits.
"Without altering the rates, I am inclined to consider to give some relief to tax payers," said Chidambaram.
New tax exemptions are:
- The exemption limit has been raised by Rs 10,000 to Rs 1,10,000
- For women assesses the limit will be Rs 1,45,000
- For senior citizens the limit is Rs 1,95,000
- The exemption limit on bank cash transaction tax has also been raised to Rs 50,000
But what the Finance Minister gives, he also takes away.
"I propose to levy additional cess of 1 per cent on all taxes to fund secondary education," said Chidambaram.
The Finance Minister's budget seems to be trying to everything for everyone – he's allocated more money to social sector schemes, tried to fight inflation and has tried to give middle class Indians more money in their hands.
The budget is being criticised by the Left and the right but Chidambaram has the approval of his boss.
"We are moving in a set direction. That itself should be an assurance that inflation will not be allowed to get out of hand," said Prime Minister Manmohan Singh.
The UPA has made quite a few promises but the key to good governance is implementation, and that's going to be the litmus test for this Government.
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