The Hindu Business Line : Lacklustre Budget?

The Budget seems to be disappointing all round as it fails to enthuse any particular sector much. The scholarship for students and job promises for physically handicapped through subsidising the employers may have social responses. But the Finance Minister disappointed the income-tax payers by simply increasing the threshold limit by Rs 10,000 and compensating a part of the gains by raising the educational cess to 3 per cent.

On the one hand, the government urges the need for domestic savings and investments, but fails to offer any budgetary support to those who come forward for this. The uncertainty in tax relief offered to cement companies by pegging the price per bag to Rs 190 will not bring any cheer to the industry. Instead, such proposals may cause confusion and counter-productive effects.

Reduction of Customs duty across the board may make the importers happy. But one does not understand how this would help arrest of price rise for the benefit of common man.

C. P. Velayudhan Nair

Kochi

To nobody's benefit

The Finance Minister has failed to satisfy the needs and aspirations of the `Aam Aadmi'. The contentious issue of inflation is untouched as measures such as the imposition of service tax on commercial rentals will only increase costs for all, whether neighbourhood grocer or large retailer.

Industry and consumers were expecting a cut in excise duty on FMCG products and daily use products but they have been left untouched and instead the peak Customs duty rate has been brought down.

The changes in direct taxes are cosmetic and irrelevant. The only upside for the small-scale manufacturing sector is the raising of SSI Exemption to Rs 1.5 crore.

Sushil Mehra

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