A day after Finance Minister Arun Jaitley presented the Union Budget 2017, senior Congress leader P Chidambaram today claimed that the people have stopped talking about the budget within 24 hours of its release. Criticising this year’s budget the former Finance Minister said that the budget won’t have any impact on the upcoming assembly elections in the five states of the country.
With the presentation of this years budget, Finance Minister Arun Jaitley made it easier for small tax-payers by announcing the reduction of the tax rate of individuals earning between Rs 2.5 lakh to Rs 5 lakh to 5% from the current 10% which will also translate into an additional benefit of Rs 12,500 for tax payers even beyond Rs 5 lakh. However, Chidambaram slammed the government by stating that the policy would have been beneficial for crores of people if the current tax cut would have been imposed on indirect taxes. Claiming that government there is an acute distress in the farm sectors, Chidambaram said that the best way to boost demand is to cut indirect taxes.
The former Finance Minister further stated that the budget had no mention of the strategy or policy to revive private investments and flagging growth. He also took a jibe at the Narendra Modi government over the implementation of the demonetisation policy and claimed that the farmers, micro and medium businesses had been most affected following the initiation of the ban on notes. He said that the Finance Minister had also missed to address the issue during the budget. Chidambaram also stated that the negative impact of demonetisation will be felt in 2017-18 and 2018-19 as well.
In a major announcement during this years Union Budget, FM Jaitley declared that political parties continue to received funding from anonymous sources, and hence reduced the maximum donation that a political party can receive in cash is Rs 2,000 from any one source. He added that no transaction of more than Rs 3 lakh will be permitted in cash.