AIADMK says budget short of expectations, DMK guarded

 Ruling AIADMK in Tamil Nadu on Saturday said the Union Budget has fallen short of expectations though it welcomed some initiatives while its arch-rival DMK chose a guarded response saying implementation of several proposed schemes has to be watched.

PTI| Updated: Feb 28, 2015, 22:42 PM IST

Chennai: Ruling AIADMK in Tamil Nadu on Saturday said the Union Budget has fallen short of expectations though it welcomed some initiatives while its arch-rival DMK chose a guarded response saying implementation of several proposed schemes has to be watched.

"Our hopes and expectations have not been fully met, we have to say that the budget has fallen short of expectations," AIADMK General Secretary Jayalalithaa said.

She, however, welcomed AIIMS for Tamil Nadu, initiatives like Mudra Bank, National Investment Infrastructure Fund, abolition of Wealth Tax and measures to check black money.

The AIADMK chief praised Finance Minister Arun Jaitley for having made a "brave attempt" against heightened expectations and for eschewing a "big bang" approach.

"We expect that catchy announcements would receive greater substance through policies, programmes, and budgetary allocations," she said.

Both Jayalalihtaa and Karunanidhi termed no change in personal income tax rates as disappointing.

On the crucial GST issue, the AIADMK chief criticised the Centre for giving "no incentives" to encourage the states to join the GST regime, such as compensation.

She described benefits to corporates in direct taxes as "appearing regressive," and expressed displeasure at cut of 39.64 per cent, in Central assistance for states.

Steps to rationalise subsidies should not mean reduction in the benefits accruing to the poor through such subsidies, she cautioned.

Though the 14th Finance Commission has increased the states' share to 42 per cent, the Centre has found "numerous ways" to claw it back, she alleged.

DMK patriarch M Karunanidhi in a guarded response said, "the budget has been dubbed as growth and investment oriented, however, a line should be drawn on opening up India to MNCs and ways should be found for healthy growth."

Welcoming AIIMS for Tamil Nadu and initiatives like Mudra Bank and Nai Manzil, he said though such schemes are welcome, "we have to wait and watch on its effective implementation."