The Hindu : National : Industry calls it “a good wholesome Budget”

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Tuesday, Jul 07, 2009
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Industry calls it “a good wholesome Budget”

Special Correspondent

CHANDIGARH: Describing it as “a good wholesome Budget”, Confederation of Indian Industry (CII) Northern Region chairman Harpal Singh on Monday said that it made a very strong directional comments in terms of good economic principles and transparency and was citizen-friendly.

Echoing the opinions of captains of industry in North India, he said the Budget moved towards a “tax-friendly regime, seeking to broaden the tax base and aiming for better compliance”.

A congregation of top industrial leaders was organised at the CII Northern Region headquarters to analyse the budgetary proposals. Mr. Singh said though the increase in Minimum Alternate Tax (MAT) was unexpected as it would increase the tax burden on some sections of the industry, the key thing was that the Finance Minister had by and large not increased excise or service tax nor had he reduced Customs levies.

The CII noted that the northern region found focus through special attention to Chandigarh, two mega carpet clusters in Srinagar (J&K) and Mirzapur (UP) and a power-loom cluster in Rajasthan. Also the Rs.4,000-crore special fund to assist the banks and State Financial Corporations to increase lending to Micro Small and Medium Entreprises (MSMEs) would strengthen the much needed flow of credit to this section of the manufacturing sector.

The CII also appreciated the Budget’s soft touch through education and focus on women, senior citizens and the common man. On the issue of rising fiscal deficit, the proposal of initiating institutional reforms during the current year itself and returning to the Fiscal Responsibility and Budget Management (FRBM) Act targets at the earliest would ensure macro economic stability in the country.

Higher allocations for railways, highways, urban infrastructure, power, gas, irrigation and rural housing would have a huge multiplier impact on the economy, generate employment and generating income, it said.

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