The budget presented by Chief Minister V. Narayanasamy for the fiscal 2017-18 falls short of growth and has failed to address vital issues including schemes to mitigate poverty and address unemployment, former Member of Parliament M. Ramadass has said.
In a statement, he said the Puducherry economy had suffered the adverse effects of an unprecedented drought in agriculture and demonetisation which find no mention in the budget.
The budget should have announced sustainable programmes of enhancing productivity, production and employment in agriculture through area expansion. But there are no indications of this in the budget.
The budget is silent about the growth in industrial production last year after the announcement of new industrial policy. The implications of GST on industrial growth and revenue of the government have not been carefully assessed and no remedial action has been envisaged in the budget in the event of adverse effect of GST.
The Budget has proposed an outlay of ₹6,945 crore out of which four components, namely, salaries, pension, debt service and procurement of electricity (described as non productive and non plan expenditure) would consume ₹4,438.74 crore leaving a balance of ₹2,506.26 crore for implementation of schemes.
Even this paltry sum would be available only if the Government of India grants ₹1,411 crore, market provides a loan of ₹1,151 crore and the Government of Puducherry raises an internal revenue of ₹4,445 crore.
The government is constrained to traverse only an uncertain path and the goal of prosperous Puducherry would remain a distant possibility and announcement of schemes without the backing of certain financial outlay would only mar the sanctity of the budgetary process, he said.
CII upbeat
The Confederation of Indian Industry has welcomed the budget 2017-18 as it focused on industrial development in the State. In a release, R.D. Shrikanth, Chairman of CII, Puducherry, said the budget laid greater importance on ease of doing business through e-governance in administration, fast track clearance and self certification in obtaining clearance/ licenses and development of MSME sector and make Puducherry a preferred industrial investment destination.
The announcement on encouraging Foreign Direct Investment and promoting software parks, pharmaceutical formulation, apparel parks, food processing industries and automobile ancillary units is a welcome move.
He also appreciated the government for its support towards implementation of Goods and Services Tax which would pave way for a robust economic growth.
“The CII would like to work closely with the government for overall socio-economic development in the State,” he said.
