Budget 2015: Bihar CM Nitish Kumar praises Arun Jaitley for special grant
Special status for Bihar was one of his long-standing claims, and on Saturday, Kumar thanked the FM "for this gesture".
NEW DELHI: Poll-bound Bihar and politically volatile West Bengal were in for a bonanza in the Union Budget on Saturday, and Finance Minister Arun Jaitley promptly got a surprise pat on the back from Bihar chief minister Nitish Kumar. Kumar, a sworn political enemy of BJP, had raised a few eyebrows when he met both PM Modi and the FM on Thursday.
Special status for Bihar was one of his long-standing claims, and on Saturday, Kumar thanked the FM "for this gesture". "I had personally met Jaitleyji at his official residence, had submitted to him a memorandum detailing some of our demands," he said. Political commentators were quick to point that the preference given to these two states would help BJP in its negotiations with regional parties to soften their resistance to key bills in Rajya Sabha while it will also rejuvenate BJP’s political activities in these states.
Taking off from the recent recommendations of the Finance Commission about devolving larger share of tax revenues to states, Jaitley said on Saturday that "both Bihar and West Bengal are going to be amongst the biggest beneficiaries of the recommendations of the Finance Commission."
Jaitley announced a "special assistance to Bihar and West Bengal as has been provided by the Government of India in the case of Government of Andhra Pradesh". Bihar also stands to get another AIIMS, for which too Nitish thanked the FM.
The Budget promises AIIMS campuses to states like J&K, Punjab, Tamil Nadu, Himachal Pradesh and Assam—all states where the party is trying to expand or has allies who need to be impressed upon. For its own party-led governments, only three new National Pharma institutes have also been announced to be set up in Rajasthan and Chhattisgarh, apart from Maharashtra.
Special status for Bihar was one of his long-standing claims, and on Saturday, Kumar thanked the FM "for this gesture". "I had personally met Jaitleyji at his official residence, had submitted to him a memorandum detailing some of our demands," he said. Political commentators were quick to point that the preference given to these two states would help BJP in its negotiations with regional parties to soften their resistance to key bills in Rajya Sabha while it will also rejuvenate BJP’s political activities in these states. Taking off from the recent recommendations of the Finance Commission about devolving larger share of tax revenues to states, Jaitley said on Saturday that "both Bihar and West Bengal are going to be amongst the biggest beneficiaries of the recommendations of the Finance Commission."
Jaitley announced a "special assistance to Bihar and West Bengal as has been provided by the Government of India in the case of Government of Andhra Pradesh". Bihar also stands to get another AIIMS, for which too Nitish thanked the FM.
The Budget promises AIIMS campuses to states like J&K, Punjab, Tamil Nadu, Himachal Pradesh and Assam—all states where the party is trying to expand or has allies who need to be impressed upon. For its own party-led governments, only three new National Pharma institutes have also been announced to be set up in Rajasthan and Chhattisgarh, apart from Maharashtra.
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The limit of reduction of health insurance premium was enhanced from Rs 15,000 to Rs 25,000. For senior citizens this limit has been increased from Rs 20,000 to Rs 30,000.
"For senior citizen above the age of 80 years, not eligible to take health insurance, deduction is allowed for Rs 30,000 toward medical expenditure. Deduction limit of Rs 60,000 on expenditure on account of specified diseases is enhanced to Rs 80,000 in the case of senior citizens," Jaitley said.
Additional deduction of Rs 25,000 is allowed for differently-abled persons, increasing the limit from Rs 50,000 to Rs 75,000. It is also proposed to increase the limit of deduction from Rs 1 lakh to Rs 1.25 lakh in case of severe disability.
Jaitley also proposed to provide that investment in Sukanya Samriddhi Scheme will be eligible for deduction under section 80C of the income-tax and any payment from the scheme shall not be liable to tax.
Limit on deduction on account of contribution to a pension fund and the new pension scheme is proposed to be increased from Rs 1 lakh to Rs 1.5 lakh.
Additional deduction of Rs 50,000 will be allowed for contribution to the new pension scheme u/s 80 CCD increasing from Rs 1 lakh to Rs 1.5 lakh.
"For senior citizen above the age of 80 years, not eligible to take health insurance, deduction is allowed for Rs 30,000 toward medical expenditure. Deduction limit of Rs 60,000 on expenditure on account of specified diseases is enhanced to Rs 80,000 in the case of senior citizens," Jaitley said.
Additional deduction of Rs 25,000 is allowed for differently-abled persons, increasing the limit from Rs 50,000 to Rs 75,000. It is also proposed to increase the limit of deduction from Rs 1 lakh to Rs 1.25 lakh in case of severe disability.
Jaitley also proposed to provide that investment in Sukanya Samriddhi Scheme will be eligible for deduction under section 80C of the income-tax and any payment from the scheme shall not be liable to tax.
Limit on deduction on account of contribution to a pension fund and the new pension scheme is proposed to be increased from Rs 1 lakh to Rs 1.5 lakh.
Additional deduction of Rs 50,000 will be allowed for contribution to the new pension scheme u/s 80 CCD increasing from Rs 1 lakh to Rs 1.5 lakh.
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