Jaitley's Budget Gives Tax Relief, Promises Higher Growth

NEW DELHI: Proposing to hike the tax exemption limit by Rs.50,000 for all individuals, Finance Minister Arun Jaitley Thursday presented the national budget for this fiscal with concerns over economic slowdown while promising bold corrective measures to unburden the poor from rising prices, revive investor confidence and cut excessive expenditure.

"People of India have voted decisively for change," Jaitley said in what was the maiden budget for himself and Prime Minister Narendra Modi's government. "Steps I unveil in the budget aim at 7-8 percent growth over the next three-four years, lower inflation, less fiscal deficit and a manageable current account deficit."

The finance minister said he proposed the tax exemption limit for individuals below 60 years at Rs.250,000, subject to parliament's approval, and Rs.300,000 for senior citizens. Deductions allowed under various heads such as investments in insurance, pension and house rent are also proposed to be raised by Rs.50,000 to Rs.150,000.

The minister said given the state of the economy today, high inflation, low growth and moderate rise in tax collections, the fiscal deficit target of 4.1 percent of India's gross domestic product set by his predecessor P. Chidambaram was a "daunting" task.