Budget cold-shouldered Bengaluru: Pai

Maqsood Maniyar | NT

Bengaluru: Manipal Global Education (MGE) chairman and former board member of Infosys Mohandas Pai said that Bengaluru had been ignored in the budget. He added that this had been the case with union budget every year.

However, he maintained that he had been satisfied with it overall. Leader of the Opposition (LOP) in the Assembly Siddaramaiah had echoed similar sentiments, terming the absence of substantial funds for infrastructure projects in Bengaluru disappointing. “Bengaluru has been ignored as always by the union budget.

There is nothing for Bengaluru,” Pai said. “There is some allocation for Metro, which is very usual. There’s nothing special for Bengaluru. The Finance Minister (Nirmala Sitharaman) is from Karnataka (Rajya Sabha MP from the state), but despite being from Karnataka, apart from the Rs5,300 crore (allocation for the Upper Bhadra Project), there is nothing for Karnataka,” he added.

The city-based philanthropist said that he was well disposed to the budget. “Overall, it’s a good budget. It shows the economy is growing. Tax revenues are much higher than the budgeted figure. From Rs7.7 lakh crore, it has gone up to Rs30.4 lakh crore. Tax to the Central government has gone up to over 11 per cent,” Pai said.

“The Per Capita Income has gone to Rs1,97,000 from around Rs1,00,000 in 2014, which is very good. The GDP (Gross Domestic Product) is going from Rs113 lakh crore to Rs301 lakh crore by 2024. So the budget shows that tax revenues are up. Government borrowing is as per budget. Next year, it’s coming down to 5.9 per cent,” he added.

‘Not enough relief for middle class’

Pai said that the magnitude of relief for middle class could have been greater. “All social schemes have been funded. This includes the Awas programme (housing scheme for the poor). Overall it’s a good budget.

For the middle class, there are some small taxoffs, but they are very inadequate. It’s too small. This is because next year income tax collections are targeted at Rs 9 lakh crore. If the FM says I’m giving up Rs 35,000 crore, then four per cent is very small. This five, six slab arrangement is complex. They (Sitharaman) should have simplified it and done it in a bigger manner. She hasn’t done it, which is disappointing. Start-ups have got nothing except a few crumbs, which is of no use,” he said.

“There is something for everyone but for the middle class, it is disappointing,” he added. He said that reduction in custom duties was too little and would have minimal impact.

“They’re too small, starting at five per cent or 2.5 percent. They have normalised the duties. For instance, from 21 different tax rates, they brought it down to 13. It’s a good reform but is it going to swing the pendulum substantially? No. It is very marginal,” Pai said.