The Hindu : Karnataka / Bangalore News : The verdict: by and large a people-friendly budget

Online edition of India's National Newspaper
Friday, Jul 09, 2004

Karnataka

Karnataka - Bangalore

The verdict: by and large a people-friendly budget

By Our Staff Reporter

BANGALORE, JULY 8. Certifying the Union Budget as good, Pavithra Baligar, a housewife from Koramangala, said it had brought relief to farmers. Besides, the increase in the limit for taxable income was good, she said. Another housewife from Koramangala, Sumathi Srinivas, felt the reduction in computer prices was welcome, as it would help in the spread of computer literacy. However, she said, the steel prices going up did not augur well for consumers.

"I am happy that farmers are benefiting to a great extent. Tax exemption on widows' pension is a good move," was how Manjula Babu from Jayanagar analysed the budget. Shashi Bharadwaj, a writer and social activist, said, "it is a people-friendly budget — similar to the Railway Budget. Levying education cess on income tax is disturbing, as it will hit the salaried class.

There is no shortage of funds with the Centre for education. The Government should have found other reasons to levy a cess. The Government has taken steps towards helping women entrepreneurs and it is commendable." A bank employee, Ramakrishna, said the budget expected a growth of seven per cent to eight per cent and aimed at wiping out the revenue deficit by 2008-09.

"If they are able to achieve this, then it is no doubt a good budget. But for me, the main highlight of this budget is the provision given for senior citizens," he said.

Sanjeev, a businessman, was apprehensive about the budget. He said every year, the Government would come out with promises. "But what have we achieved in all these years. This Government is no different. After all, what can this Government do when it does not even know how long it will last. Forget achieving growth rate of seven per cent to 8 per cent, let them provide basic needs to the poor," he remarked. Another banker, Vasudev K., said the budget did not say much about banking sector reforms. "Confusion prevails over turnover tax. Thrust given to agricultural sector is well received. Over all, it is a well-balanced budget."

K. Pratap Singh, Business Development Manager, Binary Systems, and resident of Whitefield, said, "Exempting computers from excise duty will decrease its prices by about Rs. 5,000 and bring them within the reach of the middleclass. People, who wanted to buy television sets, can now go for computers and have the best of both the worlds, by equipping the computers with the TV tuner cards."

Rajesh, working in a private sector bank and resident of Kammanahalli, said, "I was busy in my work and I could not have a complete picture of the budget. But one thing that has delighted me is the doubling of income tax exemption to Rs. 1 lakh. This is a gift to the salaried class. I do not mind paying two per cent education cess, which is said to be used for improving education standard."

Jayaprakash, a manager of a coffee store chain and resident of Koramangala, said, "I was expecting a higher interest for the small savings such as GPF and PPF. This would have encouraged people to opt for small savings. It is not surprising to see the reduction in the prices of computers and mobile phones. Prices of these electronic goods have been on a gradual decrease every successive year."

"This time, the Government felt the need to address the fundamental issues of the Indian economy by giving importance to doubling the agricultural growth rate. It is good to know that the interests of senior citizens too have been addressed, thereby helping in their old age," felt Mallappa, an elderly person. A retired teacher, Raghupathi, said the idea of imposing two per cent cess on all payable income for primary education and mid-day meal showed the Government's commitment to basic education.

Anand Herur, a freelance writer and resident of Padmanabha Nagar, does not mind paying the additional two per cent cess on income tax towards education but wants a proper monitoring of the funds and avoiding its misuse. "The local bodies do collect education cess on property tax, but it is hardly used fruitfully. The collection is shown on paper and that is it."

K.R. Ramanathan, scientist and resident of Vidyaranyapura, said, "Increase of a mere one per cent in the interest paid on the small savings of senior citizens is not adequate. The income from their deposits is subjected to tax deduction at source. Therefore, the gain for the senior citizens is not much. The income from deposits of veterans should not be taxed at all." For Satvik, a student, the reduction in price of computers was a welcome step, as it would increase their affordability. He found the two per cent cess a good move to boost primary education.

Here is how R. Renu, an engineering graduate, analysed the budget: "The provision to give higher amount of loans for higher education (Rs. 7.5 lakhs) without collateral security is a good measure. It will make the professional courses affordable for the students, particularly those from the middleclass. The likely decrease in the prices of computers will also help the students."

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