Though Union Finance Minister Arun Jaitly’s union budget fails to create any euphoria among people of Andhra Pradesh, who have been looking forward towards generous assistance from the Centre for the development of the state, it gives a great relief to the farmers in Amaravati capital region.

The budget has has come forth as a relief for the farmers who parted away with their lands to Amaravati in the land pooling scheme. It may be recalled that responding to Chief Minister Chandrababu Naidu’s appeal farmers have handed over 33,000 acres of land under unique `land pooling’ system for the capital region.

Arun Jaitley announced that the Capital gains tax would be exempted for persons whose land was pooled for the creation of Andhra Pradesh capital. However, this exemption would be applicable only to those who held lands during the time of state formation on June 2nd, 2014 and had participated in the state government’s Land Pooling Scheme.

Since a year, Chief Minister Chandrababu Naidu had been trying to convince the Centre on the issue and the farmers who have been subjected to huge taxes due to the surge in land prices can be exempted.

Meanwhile, there are some apprehensions in some political circles that this move would only help the farmers to encourage transfer their lands to corporate houses, than keeping holdings with them for the benefit of their families and livelihood.