Stimulus for economy, hopes for the poor

  • 28/02/2005

  • Business Line (New Delhi)

The Finance Minister, Mr P. Chidambaram, has delivered on the expectations of almost all sections of the society. His Budget for 2005-06, presented to Parliament on Monday, has a welcome income-tax package for the middle class, a response to corporate sector's long-standing demand for lowering the tax rate, a renewed emphasis on infrastructure development, focused approach to industry segments which have high employment potential and a wholesome deal for rural India. All this, the Finance Minister has achieved without putting any significant additional burden on the people. His indirect tax proposals were broadly revenue neutral while the direct tax effort would yield Rs 6,000 crore. But, Mr Chidambaram's expectations of revenue buoyancy are very high. He expects a Rs 27,573-crore jump in corporate tax collections, a Rs 15,310-crore hike in income-tax collections, and almost Rs 21,000 crore increase in excise collections. In other words, tax compliance has to be high and the Minister intends to tighten the screws on tax leakages.