Budget 2019 ‘bereft of any reforms’, belied expectations raised by Eco survey: Congress

New Delhi: Calling Union Finance Minister Nirmala Sitharaman’s maiden budget speech an “unusually opaque exercise”, senior Congress leader P Chidambaram Friday said the budget belied the modest expectations raised by the Economic Survey.
The former finance minister said Sitharaman’s speech was bereft of any reform and that there was no indication of any measures to attract greater private investment. Chidambaram further alleged that the budget has been prepared without listening to the voices of either ordinary citizens or knowledgeable economists. He also said Sitharaman has given no meaningful relief to any section of the people.
“On the contrary, the FM has increased customs duties on a large number of goods (protectionist), raised taxes on petrol and diesel (exploitative) and proposed extensive amendments to the Income Tax Act that will increase the tax and compliance burdens on the taxpayer,” Chidambaram pointed out. Continuing his attack on Sitharaman’s budget, Chidambaram said, “Has there ever been a Budget speech that does not disclose the total revenue, the total expenditure, the fiscal deficit, the revenue deficit, the additional revenue mobilization or the financial concessions? Has there ever been a Budget speech that does not disclose the allocations to important programmes like MGNREGA, Mid-day Meal Scheme, Healthcare etc. and to vulnerable sections like SC, ST, Minorities, Women etc.? We are shocked by this departure from the usual practice.”
He accused the Modi government of treating India as “one big state government”. “The Modi government has taken upon itself the responsibility to do things that are the right and duty of state governments. This is not cooperative federalism, it is an unequal partnership imposed by the Centre upon state governments,” he said. Taking a jibe at Prime Minister Narendra Modi, Chidambaram said the Prime Minister apparently believes that only he and his government can deliver basic public goods and services to the people. “We disagree; we think that states have the capacity to deliver public goods and services and it is not correct to reduce state governments to mere local administrations. Another grave infirmity in this approach is that the Modi government refuses to measure outcomes, refuses to take note of field reports and refuses to correct the exaggerated claims of success,” he added.
Although he termed the idea of Credit Guarantee Enhancement Corporation and the idea of a nationwide Gas grid and Water grid as interesting, Chidambaram said there are no details on it. Labelling the Budget 2019 to be “old wine in new bottle”, Congress leader Adhir Ranjan Chowdhury said it was just a repetition of “old promises”. “They (the BJP) are talking about a new India, but it is simply old wine in a new bottle,” Congress leader Adhir Ranjan Chowdhury told reporters outside Parliament, PTI reported. He added that no new initiatives were announced by the government.
The Modi government has tried to project India as an “El Dorado” (a place of fabulous wealth for all), but in reality, the pain of the economy is being experienced, he said. “There is no plan for employment generation, there is no distinct plan for giving any facilities to the agriculture sector, labour sector. This is nothing but a litany of old promises,” Chowdhury said.
In this year’s Budget, Finance Minister Nirmala Sitharaman hiked tax on petrol and diesel, raised import duty on gold, levied additional surcharge on super rich and brought a tax on high value cash withdrawals as she sought to spur growth with a reduction in corporate tax and sops to the housing sector, startups, and electric vehicles.
Highlights of the Buget
Tax deducted at source of 2% for cash withdrawals of over Rs 1 cr a year
Surcharge hiked on individuals with taxable income above Rs 2 cr
Effective tax rate on Rs 2-5 crore taxable income hiked by 3%
Effective tax rate on over Rs 5 crore taxable income hiked by 7%
Companies with turnover up to Rs 400 cr to pay 25% tax
Aadhaar, PAN interchangeable for filing income tax returns
To launch automated, faceless assessment of tax
To make pre-filled tax return forms available
Legacy dispute resolution plan to settle litigation in excise, service tax cases
Fiscal deficit for 2019-20 at 3.3% of GDP
Gross market borrowing pegged at Rs 7.1 lakh crore
GST collections pegged at Rs 6.63 lakh crore
Disinvestment target pegged at Rs 1.05 lakh cr
Dividend income from state-owned companies seen at Rs 57,486 cr
Dividend/surplus from RBI, financial institutions at Rs 1.06 lakh cr
Customs duty on gold, precious metals hiked to 12.5%, from 10%
Customs duty on stainless steel hiked to 7.5% from 5%
Special Additional excise, road cess on petrol, diesel hiked by Re1/litre
Tax deduction of Rs 1.50 lakh on e-vehicle loan interest
Extra Rs 1.50 lakh tax deduction on affordable housing loans
RBI, banks to absorb merchant discount rate at small shops
To impose basic excise duty on tobacco products (