Jaitley tables a growth-pro budget!

Arun Jaitley’s first full fledged budget seems like a pro-growth budget with a few populist schemes announced. The government pleased the poor with cheap insurance and pension schemes. At the same time, the government stressed on making business easy by decreasing the corporate tax from 30% to 25%, making various permissions and approvals easy.

The Budget did not have any change in the existing Income Tax slabs. However the finance minister gave some relief to the tax payers by increasing transport allowance from 800 to 1600, increasing pension funds exemption from 1 Lakh to 1.5 Lakh, introducing Tax free investment bonds, Health insurance premium exemption increased from 1500 to 25000 etc. However the common man will be burdened by the increase of service tax from 12.36% to 14%. Finally, the budget is less on freebies or apparent price falls but is keen on giving few indirect benefits. The focus is mostly on strengthening the economy.

Coming to the benefits of both the Telugu States, there are no special allocations to the both the states. Andhra Pradesh was given an IIM which was already announced last year and Telangana is given AIIMS which was promised earlier. Qutub Shahi Tombs in Hyderabad are recognized as heritage sites that should be protected and are allotted funds. Finance Minister promised special finance assistance to Andhra Pradesh along with Bengal and Bihar but the amount is not mentioned.