Jaitley promising the moon: Chidambaram

Congress leader P Chidambaram yesterday slammed the Union Budget, terming the promise of Rs500,000 for healthcare for poor families as “a big jumla (fake promise)”, and said there was “tokenism” on creating jobs and nothing to indicate rise in farmers income.There was also no tax relief to the average tax payer and no measures to boost exports Chidambaram said while expressing his disappointment about some major schemes having reduced outlays.“It is the last full budget of this government, and I should add ‘thank god for that,” the former Union finance minister told reporters here.Referring to the proposed national health protection scheme, he said it will entail huge expenditure but no money has been provided for it.“The promise of Rs500,000 per family for secondary and tertiary healthcare is a big ‘jumla’. The target group is 100mn families. Assuming each family will avail of Rs 50,000 - one tenth of Rs500,000 – the amount required per year will be Rs5tn,” he said.He said if the insurance companies will foot the bill, the estimated premium at Rs5,000 to Rs15,000 per family will require an outgo from Rs500bn to Rs1.5tn per year. “Is the finance minister serious?” he asked.The Congress leader said he did not hear any measures to boost exports. On the promise to increase the minimum support price (MSP) of crops 1.5 times, he said there were no details.“There is nothing to indicate that farmers real income will rise. The agriculture distress will continue and deepen,” he said.Stressing jobs were not being created, Chidambaram said that Finance Minister Arun Jaitley had no new ideas and “has fallen back on tried and failed Mudra scheme”.“Jobs are not being created. Industry, especially MSMEs, create jobs. Industrial GVA (gross value added) growth has declined from 9.8% in 2015-16 to 6.8% in 2016-17 to 2.7% in 2017-18,” he said.He said all fiscal deficits have crossed the budget estimates, while there was nothing in the budget to boost private investmentChidambaram said there is no tax relief to the average tax payer and only corporates with income up to Rs2.5bn get tax relief of 5%. For individuals, standard deduction is back but long term capital gains tax is also back,” he said.“For the middle class earner and saver, one cancels the other. Actually, by way of long term capital gains tax and 4% cess, the tax payers will pay the government Rs310bn more whereas the gain through standard deduction will only be Rs80bn,” he added.“The budget proposals should have been bold and radical. Unfortunately, they are a big let down... It is a defeatist budget.”Asked about the proposal to consolidate insurance companies, Chidambaram said he had no quarrel with that. “But let us go back to disinvestment - the ONGC (Oil and Natural Gas Corporation Limited) purchase of Hindustan Petroleum Corporation Limited is not strategic disinvestment. It is simply an accounting gimmick,” he said.Answering a question on GDP growth, he said the average growth for the whole year could be between 6.25% and 6.5%.“From 6.5% in 2017-18 to jump to 7.75% and so on in 2018-19, given this budget, I think, is pretty much not possible.”Chidambaram said inequality was growing and added that consumer will not get any relief on petrol and diesel prices as long as the BJP-led government is in office.Chidambaram said some major schemes that will get constant or reduced outlays were the Mahatma Gandhi National Rural Employment Guarantee Act, Pradhan Mantri Awas Yojana, National Drinking Water Mission, Swachh Bharat mission, National Health Mission, Mid-Day meal scheme, interest subsidy for short-term farm credit, northeastern investment promotion, price stabilisation fund and Gram Jyoti Yojana.