Office-bearers and members of Karnatak Chamber of Commerce and Industry watching the live telecast of Union Budget presentation in Hubballi on Saturday.
| Photo Credit: KIRAN BAKALE
The Union Budget presented by Finance Minister Nirmala Sitharaman on Saturday has received mixed reactions with the opposition describing it as ‘disappointing and pro-rich’, while ruling party leaders have hailed it to be ‘pro-development’.
Union Minister Pralhad Joshi termed the Union Budget as another step towards strengthening the ‘Vikasit Bharat’ vision of Prime Minister Narendra Modi. He said that the Finance Minister had allocated more funds for new and renewable sources of power generation and the proposal on the development of agricultural districts would greatly benefit the farm sector.
MLA Mahesh Tenginakai has termed the Budget ‘pro-people’, stating it focused on improving farmers’ income and making the country more ‘Atma Nirbhar’.
Nothing for State
MLA and Chairman of Karnataka Slum Development Board Prasad Abbayya has said that once again the Union government had meted out injustice to Karnataka. Despite Karnataka being the second highest tax payer, nothing had been given to the State. Instead keeping the elections in mind, Bihar had been allocated special grants, he has said.
The Communist Party of India (Marxist) has called the Budget as pro-corporate and pro-rich. Dharwad District Secretary of CPI(M) Mahesh Pattar has said that although the contribution of agriculture and allied sectors had increased to 16%, the allocation to these sectors had come down. Because of lack of employment opportunities in urban areas, reverse migration to villages had begun which was evident from the increase in the farming employment percentage increasing to 46.1%, he said. What was even worse that the allocation towards crop loss compensation had dropped, he stated, adding that farmers and labourers would hold an agitation on February 5.
Youth Congress leader from Hubballi Rajat Ullagaddimath said the Budget was disappointing as there was nothing for Karnataka, especially North Karnataka, although Finance Minister Nirmala Sitharaman was elected to the Rajya Sabha from Karnataka. The BJP leaders from Karnataka had failed to get the State its due in the Budget, he said.
The Karnatak Chamber of Commerce and Industry (KCCI) has welcomed the budget proposals on long-term loan scheme of up to ₹20 crore for Micro, Small, and Medium Enterprises (MSMEs), blueprint for creating 7.5 crore additional jobs in the MSME sector, and the increase in investment limits by 2.5 times as welcome moves.
Benefits to middle class
Speaking to presspersons in Hubballi on Saturday, KCCI president S.P. Saunshimath, Vice-President Sandeep Bidasaria and others termed it ‘promising’. They said, increasing the income tax exemption limit to ₹12 lakh, raising TDS limit on bank deposit interest income upto to ₹1 lakh and increasing the TDS limit on rental income from ₹2.4 lakh to ₹6 lakh per annum would largely benefit the middle class.
Prof. R.R. Biradar from the Economics Department of Karnatak University has said that priority had been given to poverty alleviation, quality education and healthcare, job creation, involvement of women in economic activities and increase in food production. As the Gross Domestic Product had decreased this year, giving priority to sustainable economic development, inclusive development, private investment and boosting consumption expenditure was a welcome move, he has said.
Another Professor of Economics from Karnatak University B.H. Nagoor has said that the Budget had introduced transformative changes compared to the previous ones. “A major focus is on the middle class, along with improvements in physical and digital infrastructure. The increase in income tax exemption limit is expected to boost consumption expenditure and drive economic growth. Additionally, the Budget introduces new initiatives in agriculture, digital infrastructure, and education. These measures are expected to strengthen the economy,” he has said.
Chartered Account Dhanapal Munnoli said that the increase in the income tax exemption limit, increased loan outlay for MSME sector and for farmers were welcome. However no scheme had been proposed for widening the tax net, he has said.
Chartered Accountant N.A. Charantimath has said that the Finance Minister had reduced income tax burden in recognition of admirable energy and ability of the middle class in nation building. The proposal would help the people with an annual income of ₹12 lakh to save up to ₹80,000 per year. For income upto ₹18 Lakhs, savings is estimated at ₹70,000 and for income over ₹25 lakhs middle income-tax payers would save ₹1,10,000 over the existing tax rates. The government’s theme ‘Trust First, Scrutinise Later’ would lead to a high level of tax compliance from the taxpayers, he has said.
Akhil Bharatiya Rashtriya Shaikshik Mahasangh (ABRSM) has welcomed the allocation of ₹1,28,650 crore for the education sector but has reiterated its demand for an allocation of 6% of GDP for the education sector so that all students received quality education.
Published – February 01, 2025 09:43 pm IST