New government at Centre will reverse damage: Jayalalithaa

CHENNAI: Hoping that a new government at the Centre would reverse the 'damage' caused by UPA rule, Tamil Nadu Chief Minister Jayalalithaa today said the concessions announced were done with an eye on general elections.

Reacting to the budget, she said it would not lead to economic recovery and neither contribute to stability or growth.

Stating that the fiscal concessions announced were short-term sops (till June 30 2014), she said it was done purely with the general elections in mind.

"Fortunately, it is only an interim budget. A new Central government will undoubtedly do what is necessary to reverse much of the damage caused by the ten years of UPA rule and truly put the country on a path of high growth."

Citing inclusion of rice as an 'agricultural produce' now and its exemption from service tax, Jayalalithaa said it was the Finance Minister "undoing his own discriminatory act."

Though this was an interim budget, the Finance Minister had "deviated from convention" by making announcements for excise duty cuts on items like capital goods, automobiles, mobile phones, till June 30, 2014, she charged.

"There is nothing in the interim union budget for the people of Tamil Nadu to cheer about."

The increase in outlays in the social sectors has been achieved by "mere accounting jugglery" of converting untied central plan assistance to States into additional central assistance and centrally sponsored schemes of the Centre, she alleged.

"The highlight of the budget was again the continued disruption led by members of the UPA themselves in the Lok Sabha."

In his reaction, DMK president M Karunanidhi said certain features of the budget like exclusion of rice from service tax, concession on interest on education loan, likely reduction in the prices of mobile phones were welcome.

"Though the budget did not have concessions to the expected level, it is welcome to a certain extent," he said.