BJP says Budget fails to meet challenges of recession

New Delhi, Jul 6 (PTI) Dubbing the Union Budget a
"damp squib", the Bharatiya Janata Party (BJP) Monday said the
government has failed to come up with a concrete plan to boost
investment and generate employment to meet the challenges of
recession.

"The Union Budget has proved to be a damp squib
although it promised a better deal in the recently released
Economic Survey," BJP President Rajnath Singh said in a
statement.

"The government could not come up with any concrete
programme to boost investment and create employment
opportunities in core sectors like agriculture, exports,
industry, power and highways to meet the challenges of a
deeper recession in our economy," Singh added.

Echoing similar sentiments, party's Deputy Leader in
Lok Sabha (Lower House of Indian Parliament) Sushma Swaraj
said the Budget is "incapable" of generating extensive
economic activity or attracting investment into the country.

"The Budget admits that the fiscal deficit has moved
up from 2.7 per cent to 6.8 per cent. This disturbing figure
is an understatement," Swaraj told reporters.

She also described the Budget as "lackluster and dry",
saying the government has missed an opportunity to
"aggressively" address the economic slowdown and provide
growth-oriented incentives in infrastructure and housing.

"There was a great buzz created by the government
regarding big ticket reforms to be introduced in the Budget.
But, it did not come up with anything worth mentioning on this
front. By putting economic reforms on the backburner, the UPA
government will not succeed in realising the dream of 7 or 8
per cent rate of GDP growth in the current challenging
environment," said Singh.

The BJP also criticised the Budget for failing to
provide any "significant indication" of rise in infrastructure
investment.

"Infrastructure creation has been a major casualty
during UPA-I. The Budget, either through public investment or
fiscal means, does not give any significant indication of rise
in infrastructure investment," Swaraj added.

She said that while it was expected that the housing
and real estate sector would receive incentives from
Finance Minister Pranab Mukherjee, "he preferred a status quo.
The housing sector could have helped the economy in these
times as it could have generated employment and provided
fillip to the economy."

But, the Opposition party welcomed the introduction
of one-rank-one-pension scheme in Armed Forces and abolishing
of the "much discredited" Fringe Benefit Tax and Commodities
Transaction Tax.

Swaraj said tax concessions provided for electoral
funds would help in electoral reforms. PTI NAB
RAI