The management committee member of the Karnataka Chamber of Commerce and Industry and former president of Belagavi district Chamber of Commerce and Industr,y Satish Tendulkar, expressed disappointment over the Union Budget on Wednesday, stating that expectations of the trade and industry were not fulfilled.
In a release, he said increase in service tax in some areas was disappointing, there was no direct and immediate relief to trade and industry, expected relief for Firm Tax, Mutual Funds, Demating (of shares) and Income Tax did not come, and exemption not provided to foreign made Life Saving Drugs. Also no efforts made to promote much needed generic medicines.
However, a welcome aspect was that the small and medium industries would be benefited due to reduction of tax by 5%, which would help them sustain against the global recession. Reduction in tax slab would also help the middle class to some extent. The impetus given to agriculture sector was a welcome measure and the target of achieving 133 km road-length per day under Pradhan Mantri Gram Sadak Yojana would boost rural connectivity.
Political funding
Meanwhile, workers of different political parties welcomed the measures to make political funding accountable, but pointed out that politicians would certainly find new ways to get money. There are many politicians who are running educational institutions, including professional colleges where they collect huge donations in lakhs not from the candidate or from their family members but from a third-party. A similar ‘formula’ will help donor sto donate multiples of Rs.2000 (as restricted in the budget) through third parties or more than one person.
Our Bidar Special Correspondent reports:
B.G. Shetkar, president, Bidar Chamber of Commerce and Industry, is happy with some provisions of the Budget but is dissatisfied with the Finance Minister’s failure to bring back the vigour in the economy that has been affected by demonetisation.
The most significant announcement probably is setting up of skill development centres in 500 districts. This will make youth employable. The promise to increase funding to farming and irrigation will increase rural prosperity. Promises to build airports even in small cities and increased allocation to infrastructure development are encouraging.
However, the budget fails to impress the common man on taxation and other measures to boost production and consumption. The people’s expectations on income tax were very high, but the budget has disappointed them.
If the Finance Minister had reduced tax rates, compliance would have increased. He should have at least changed the taxation slabs. He has only halved the entry level tax rates. This will help people save around Rs. 10,000 per year. But there are no incentives to larger tax payers.
The budgetary plan to restrict all cash payments to Rs. 3 lakh is a bad idea. Traders will suffer. The limit should have been fixed at around Rs. 10 lakh.
The government should have increased public funding on infrastructure and human resource development on a large scale.
