CHANDIGARH, June 1: The maiden budget of the BJP-led government today evoked mixed reactions in the city, with some residents terming it "good" for the common man and others showing skepticism over the impending price rise and inflation.Most residents Newsline talked to termed the Union Budget a soft one, with Finance Minister Yashwant Sinha facing the allegation of "not putting in much for the long-term".Bachitter Singh, an architect, terms the budget "positive and progressive". It will not only help generate more resources internally, but also help garner foreign investment through NRIs. The common man will continue to suffer though, as the concessions granted would be balanced by a hike in certain essentials.Chitranjan Aggarwal, a practising chartered accountant, feels the budget is neither populist nor hard as it manages to stir growth and not shake the economy out of slumber. "Sinha is trying to boost the economy by spending more on the core sectors of economy as he is trying to leverage growth through the infrastructure sector," he says. "As usual, though he promises to bring an end to the licence raj, it seems a utopian dream".But, for the common man, the tax reliefs are cosmetic and nothing substantive has been done to weaken the impact of sanctions and to support the depressed equity markets, he adds. Chaman Lal Sharma, an Income-Tax advocate, terms the budget a good one. He feels that the increase in the I-T slab limit and standard deduction will help the common man, but for the upper class some saving clause could have been incorporated. He welcomes the efforts to rope in more assesses, which will help garner more tax revenue ultimately. Vijay Mahajan, a reader in Economics at Punjab University, termsthe budget a "soft" one, even as it does not have not of concession for the common man. "It is one presented under political compulsions, against the economic requirement of a tough budget." The budget, he says, aims at wooing the NRIs and broadbase the I-T payers by following the "saral, samadhan and samman" slogan. He allays fears on increasing the actual fiscal deficit against the one projected. "It seems the FM has resorted to indirect protectionist measures by increasing import duty to safeguard the interests of domestic manufacturers". The common man, will, however, feel the blunt of the budget as no significant I-T relief has been given and the revised pay structures will make him to pay a part of his increased pay towards I-T. The burden of increase in petrol prices, tyres, postal charges and others will encroach upon his purchasing power, he strongly feels.Sanju Verma, a housewife, feels the budget is good for the common man as "not too many taxes have been imposed. Though for the salaried class, the increase in tax limits has not been much". She fears that the increase in defence allocation, which was required in the present scenario, would result in a rise in prices.Sanjna Singh, a working woman, also welcomes the budget and terms it "good overall", if the claims of the government of keeping inflation under control are to be believed. "Petrol prices will have a direct effect on us, as prices of essentials will increase. Tax increase on cigarettes is welcome as it would also discourage smoking. Relief for NRI investment is also welcome as it would ward off possible negative effects of sanctions, she felt.Ramesh Sharma, a shopowner, fears it would have an overall impact on spiralling prices. He says the middle-income group with limited resources will be largely affected, even as the hike in cigarettes would not be much as those who have to smoke will do so, come what may. Rahul Sharma, a company executive, also fears a rise in inflation. "Rates of all general commodities will rise to make life for the common man even more difficult". It is a good budget for the industry, though, he added.
