Chennai, Feb 1 (PTI) Tamil Nadu's ruling DMK on Saturday dubbed the Union Budget as aimed at getting political mileage in states like poll-bound Bihar and said the income tax exemption does not encourage savings.

DMK spokesperson TKS Elangovan said the Budget appeared to be aimed at certain states. The last budget made generous allocations to Bihar and Andhra Pradesh and states including Tamil Nadu were ignored, he alleged.

"This time round, since the election is due in Bihar this year, they are targeting Bihar and announcing schemes for that state in the Budget itself. I have doubts if the BJP is doing this to come to power in Bihar (on its own); defeat Nithish Kumar," Elangovan told PTI.

The personal income tax exemptions, though appear to be concessions, do not encourage savings and the Centre is aiming to "usurp" taxes from the ordinary people through other ways; like by increasing GST for commonly used commodities. PTI VGN ADB

Income tax exemptions criticised as failing to encourage savings and shifting tax burden via indirect taxation. The spokesperson criticised the Budget as politically targeted toward certain states and argued that personal income tax exemptions do not promote savings, contending these concessions may be offset by increased indirect taxes on commonly used goods, shifting the tax burden onto ordinary citizens.