Union Budget lacks focus, presented by govt in confusion, says TDP

HYDERABAD: Telugu Desam Party president N Chandrababu Naidu dubbed the Union Budget as one lacking "focus, vision and direction", and presented by "a government in confusion".

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"The Government of India is caught in a state of confusion (because of political factors). The Budget too lacked focus, vision or direction. It is uninspiring," Chandrababu said, talking to reporters at his residence here.

The Budget was not positive for the growth or for the development. It was only intended to loot people further and the hike in service tax was a case in point, the former Chief Minister said.

Virtually every sector, barring 17 in the negative list, would now attract service tax at an enhanced rate of 12 per cent. Reduction in subsidies from two per cent of the GDP to 1.7 per cent only meant that prices of fertilisers and petro products would shoot up in the coming days, leading to escalation of prices of all commodities, the TDP chief said.

"Budget is clearly against the farmers and the agriculture sector. There is no mention of the implementation of Swaminathan Committee or Hooda Committee recommendations. Given the allocation of Rs 75,000 crore towards food subsidy, it is unlikely that the Centre will enact the legislation on food security this year," Chandrababu said.

Increase in the income tax exemption limit by a meagre Rs 20,000 would provide no relief to the salaried class, he said. "More people will fall in the tax net now which can lead to harassment and corruption (by IT authorities). The government should have rationalised the tax structure so as to check evasion."