Bonus for allies, none for rivals, nothing for K'taka!

New Delhi, NT Bureau: Prime Minister Narendra Modi’s newly formed government presented an annual budget in Parliament that raised spending to generate more jobs and spur economic growth, while aiming to appease coalition partners it needs to stay in power.

In her budget speech Tuesday, Finance Minister Nirmala Sitharaman said the government is focused on driving domestic growth through jobs, training and small businesses.

India’s inflation rate is stable and moving toward the gover nment’s 4 % target, she said, while the economy grew at a sizzling 8.2% rate in the last fiscal. More than a decade after he first took office, Modi is under pressure to generate jobs to sustain growth.

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The Centre revised slabs for the new income tax regime. Income tax rates, always one of the most closely-watched elements of the budget, will be significantly revised, Ms Sitharaman announced, changes that the government estimates will save taxpayers an average of Rs17,500 annually.

Unemployment emerged as one of the biggest talking points at this year’s general election with many analysts suggesting the BJP’s underwhelming performance stemmed from disillusioned workers unable to find jobs.

On Tuesday the finance minister introduced three employment-linked incentive schemes aimed at boosting jobs in manufacturing and other key sectors.

• Customs duty on gold, silver, platinum and mobile phones reduced.
• Angel tax on startups for all classes of investors goes.
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• Three employmentlinked schemes to be launched.
• `1.48 lakh crore for education, employment, skill provided.
• Special package of `15,000 crore for Andhra Pradesh to build the capital.
• Centre to boost water, and waste management in 100 large cities through bankable projects.
• `26,000 crore allotted to Bihar for infrastructure projects.

'KURSI BACHAO BUDGET'

The Centre announced financial support and several infrastructure projects for Andhra Pradesh and Bihar. The BJP formed the government at the Centre with the help of Bihar’s ruling Janata Dal (United) and Andhra Pradesh’s Telugu Desam Party, among other members of its NDA.

The Centre announced social and infrastructure funds for AP, with a backward region grant for three districts. It has allocated Rs 15,000 crore assistance for capital city Amaravati.

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For Bihar, Sitharaman announced support for the development of the Patna-Purnea expressway, Buxar-Bhagalpur highway, improved road connectivity in Bodhgaya-Rajgir-VaishaliDarbhanga and an additional two-lane bridge over river Ganga in Buxar at the cost of Rs 26,000 crore. The Opposition termed the Budget as a "kursi bachao budget."