New Delhi, Feb 28 (UNI) Targeting the 'Aam Aadmi' though lacking in substantial reform measures, Finance Minister P Chidambaram today raised the threshold for exemption in personal Income Tax by Rs 10,000, but hiked the education cess by one per cent, increased the allocation on social sectors and provided succour to small service providers and small scale industry.
In the General Budget 2007-08- the fourth of the UPA government- presented in the Lok Sabha, Mr Chidambaram raised dividend distribution tax to 15 per cent, but enhanced deduction in respect of medical insurance premium under section 80D to a maximum of Rs 15,000. In the case of senior citizen, this deduction will be for a maximum of Rs 20,000.
Mr Chidambaram also raised defence spending to Rs 96,000 crore from the last year's level of Rs 89,000 crore.
The allocation for education has been raised by a hefty 34.2 per cent and health by 21.9 per cent. Besides, a number of new initiatives have been announced to improve the growth rate of the sagging agriculture sector.
Minorities, landless labour and Scheduled Castes and Scheduled Tribes also find a place in Mr Chidambaram's fourth budget.
The Budget gives relief of Rs 1,000 to all assessees, including women, by hiking the exemption limit.
The threshold limit of exemption in case of all assessees has been increased by Rs 10,000 and consequently in the case of women assessees this limit has been hiked from Rs 1,35,000 to Rs 1,45,000, also giving the fair sex a relief of Rs 1,000.
In the case of senior citizens, the threshold limit has been hiked from Rs 1,85,000 to Rs 1,95,000, a relief of Rs 2,000.
The education cess has been increased from 2 per cent to 3 per cent helping Mr Chidambaram to garner an additional Rs 5,300 crore.
Mr Chidambaram's budget drew mixed reaction. While the stock market plummetted by a whopping 540 points, the corporate sector was tongue-in-cheek about the budget. They lauded the attempts of the Finance Minister to hike spending on social sectors, but bemoaned the hike in dividend distribution tax and education cess.
Prime Minister Manmohan Singh said the Budget has a clear anti-inflationary stance and would strengthen the rural economy.
The opposition found inflation a point to hammer the Government and accused it of not having enough growth measures in the Budget.
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In the General Budget 2007-08- the fourth of the UPA government- presented in the Lok Sabha, Mr Chidambaram raised dividend distribution tax to 15 per cent, but enhanced deduction in respect of medical insurance premium under section 80D to a maximum of Rs 15,000. In the case of senior citizen, this deduction will be for a maximum of Rs 20,000.
Mr Chidambaram also raised defence spending to Rs 96,000 crore from the last year's level of Rs 89,000 crore.
The allocation for education has been raised by a hefty 34.2 per cent and health by 21.9 per cent. Besides, a number of new initiatives have been announced to improve the growth rate of the sagging agriculture sector.
Minorities, landless labour and Scheduled Castes and Scheduled Tribes also find a place in Mr Chidambaram's fourth budget.
The Budget gives relief of Rs 1,000 to all assessees, including women, by hiking the exemption limit.
The threshold limit of exemption in case of all assessees has been increased by Rs 10,000 and consequently in the case of women assessees this limit has been hiked from Rs 1,35,000 to Rs 1,45,000, also giving the fair sex a relief of Rs 1,000.
In the case of senior citizens, the threshold limit has been hiked from Rs 1,85,000 to Rs 1,95,000, a relief of Rs 2,000.
The education cess has been increased from 2 per cent to 3 per cent helping Mr Chidambaram to garner an additional Rs 5,300 crore.
Mr Chidambaram's budget drew mixed reaction. While the stock market plummetted by a whopping 540 points, the corporate sector was tongue-in-cheek about the budget. They lauded the attempts of the Finance Minister to hike spending on social sectors, but bemoaned the hike in dividend distribution tax and education cess.
Prime Minister Manmohan Singh said the Budget has a clear anti-inflationary stance and would strengthen the rural economy.
The opposition found inflation a point to hammer the Government and accused it of not having enough growth measures in the Budget.
MORE UNI
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