New Delhi, Mar 16: Union Finance Minister Pranab Mukherjee on Friday, Mar 16 tabled the much awaited Union Budget 2012 which received mixed response from the people of the nation. After citing the finance ministry's proposal to raise income tax exemption limit to Rs 2 lac, it seems that the UPA government has tried to make Indians happy, though it has failed to impress the India Inc. which has showed its disappointment with the budget.
One of the first thing that popped up in the mind following the budget is - central government and Congress have ditched the nation with this union budget. Pranab Mukherjee's budget might have been aimed to woo the voters to win upcoming Lok Sabha election in 2014. However, it would be difficult for UPA to shield their 'series of corruption' with their attempts to coax the public with the budget.
India Inc. has already claimed that higher excise duty and service tax proposed in the Budget would hurt growth. BSE Sensex closed at 210 points lower and NSE Nifty too ended lower. [Highlights of Union Budget 2012]
The finance minister proposed raising the income tax exemption limit for individuals to Rs 2 lakh per annum from Rs 1.80 lakh. Unveiling the Budget proposals for 2012-13 in the Lok Sabha, he also increased the limit to Rs 10 lakh under the 20 per cent tax slab. The current limit is Rs 8 lakh.
Mr Mukherjee, while detailing his budget 2012, said that increasing the exemption limit is a move towards implementation of the Direct Taxes Code (DTC). The Standing Committee of Parliament that has scrutinised the DTC Bill had suggested raising the tax exemption limit to Rs 3 lakh.
UPA government has been suffering from several difficulties and pressure from key allies such as Trinamool Congress and DMK, extended the misery of Congress whose dream to rule Uttar Pradesh has been shattered following the result of the recently concluded assembly elections. Congress' misery started during Bihar election 2010 and it has been continuing till the date. Meanwhile, Janata Party chief Subramanian Swamy also expressed his interest to join NDA. The news must have rubbed salt on UPA and Congress' wounds. Now, Congress and UPA government have to come up with some potential solution which can help the government to retain its reign in the country post election 2014.