The Hindu : Karnataka / Bangalore News : A balanced, pro-middle class Budget, feel Bangaloreans

Online edition of India's National Newspaper
Wednesday, Mar 01, 2006

Karnataka

Karnataka - Bangalore

A balanced, pro-middle class Budget, feel Bangaloreans

Staff Reporter

People in city happy with P. Chidambaram's proposals

Bangalore: No shocks and some pleasant surprises. This was what a cross-section of Bangaloreans had to say about the Union Budget that was presented by Finance Minister P. Chidambaram on Tuesday.

Sunil Sanghi, general manager of a software firm, said: "The reduction on certain items under the Fringe Benefit Tax is welcome, but with the income tax ceiling remaining the same, the net pay may not really go up. It is a pro-urban Budget."

Tushar and Harry, BPO employees, said that the higher taxes on cigarettes may not affect habitual smokers as they do not mind paying more. It is good that medicines will cost less. The increase in allocation for biotechnology research is good news, they said.

Priya, a software professional, said: "The unchanged income tax rates means people can continue with their savings and investment plans. Along with the reduction in tax on smaller cars, petrol should have been made cheaper."

Roy, an executive in a real estate firm, said: "Budget promises are rarely kept. Even if taxes on some items are cut, others may go up and the cost of living will remain the same. The Bangalore-Chennai Expressway will drive the economy with faster transport of goods. The 4,000 MW power project for coastal Karnataka with private sector participation may spell good for the State."

Sheik Mehmood, a businessman, said: "It is a people-friendly budget... the State Government has been asked to cut taxes on liquefied petroleum gas, and kitchenware will cost less. But nothing has been said about petrol prices. Those in rural areas seem to have been overlooked,."

R.C. Chugh, a BSNL employee, said: "This budget really benefits the middle class. Prices of small cars, CFL lights, kitchenware and LPG stoves are all set to come down. For me, the cut in fringe benefit taxes means more money each month."

Most people felt that the needs of urban consumers were taken into account by Mr. Chidambaram while also looking after the interests of the rural economy. They felt it is quite balanced.

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