Having dashed hopes of increasing up State revenues by announcing a green tax or a generation tax on hydropower, the ruling Congress is a disappointed lot whereas BJP has hailed the announcement of an IIM for Himachal and increasing of income limits from taxation for a growing middle class in the Union Budget.
Former Chief Minister Prem Kumar Dhumal termed it a balanced Budget that had shown concern for the aam aadmi, the farmer, worker and industry.
“Increasing the income tax limit from Rs2 to Rs2.5 lakh, PPF deposits from Rs1 to Rs1.5 lakh and exempting interests on home loans from Rs1.5 to Rs2 lakh gives immense relief to the common man,” said Dhumal.
Chief Minister Virbhadra Singh termed the Budget ‘disappointing which was not upto expectations’.
Himachal should have got preference in the Budget for organic farming, disaster management, development of a tourism circuit, extension of the rail network and an industrial package on the patter of North-Eastern States but there is nothing, said the Chief Minister.
“What is most disappointing, the Budget has not even announced some effective steps to curtail rising prices that are affecting the common man the most,” he added.
A meeting with Finance Minister Arun Jaitley on July 5, where the Chief Minister impressed upon him the need for expanding the rail network in the hill State and extension of an industrial package that was curtailed by the previous UPA Government has found no mention in the rail or general Budget.
Questioning the allocation of Rs1,000 crore for one-rank-one-pension scheme for ex-servicemen, Virbhadra said that this scheme was approved by the UPA Government but it required higher level of funding than the provisioning made.
Raising the fiscal deficit from the earlier target of 4.1 per cent to 4.5 per cent would mean more borrowings that would further increase prices, he added.
The chief minister and BJP state president Satpal Satti found common ground in giving a thumps-up for the announcement of an IIM
for the state.
“Opening of an IIM will establish news norms in management studies,” said Satti, “that will help in making the State into an educational hub.”