Budget's heart is in the right place : Harpal Singh, Chairman, CII Northern Region

Focuses on Inclusive development, Infrastructure and Economic growth : CII

"The Union Budget 2010-11 has its heart in the right place. It lays down a good basis for a strong economy and a strong social fabric. The Finance Minister has taken care of the fiscal discipline by bringing down the fiscal deficit. There is laudable focus on Agriculture, Infrastructure, Environment friendly Technology & Products and Renewable Energy. More importantly the Union Budget gives a strong directional focus with the roadmap for implementation of GST and Direct Tax Code by April 2011", said Mr Harpal Singh, Chairman, CII Northern Region.

The Union Budget proposals for Agriculture & related industry are heartening, said CII Northern Region in its Press Release on the Union Budget 2009-2010 issued here in Chandigarh today. "These will enhance the productivity levels and provide greater engagement opportunities for the private sector players. Commitment for addressing of issues relating to opening up of the retail trade impetus provided to the food processing sector including the tax concessions, measures to reform fertilizer subsidy, focus on conservation farming and enhancing productivity of dry land farming would go a long way in strengthening the Indian agriculture sector. And since Agriculture is strong in Northern states, we hope Northern region will benefit", added Mr Hapal Singh.

The special focus on Women farmers is interesting, added Ms Charu Mathur, Regional Director, CII Northern Region. She added "It is in true spirit of inclusiveness that the Finance Minister has increased the plan allocations for Women, Children, Health, Education and the Backward Classes. The outlay on rural development has also been enhanced. We hope that the social fabric will be strengthened with this impetus".

Mr. Partap Aggarwal, Chairman, CII Chandigarh added "The good directional focus on Taxation with the roadmap for the GST and Direct Taxation Code laid down for April 2011 makes the Budget forward looking. The Finance Minister has left the indirect taxes mostly unchanged with continuation of Service Tax at 10% and a 2% increase in Excise Duty;- from 8 to 10%, (the Economic Survey had recommended an increase of 12 to 14%). The decrease in surcharge on corporate tax from 10 to 7.5% is a welcome step."

Mr Krishan Goyal , Past Chairman, CII Chandigarh Council however slammed the Union Budget for increasing MAT rate from 15 to 18% is certainly an unwelcome step. CII had asked for abolition of MAT. This will affect us adversely, he added.

On the personal Income Tax front the changes in the tax slabs have given the common man more disposable income. However, the fuel price rise may affect this disposable income adversely as it is likely to have a rippling affect in the economy, said Mr. Gunbir Singh, Chairman, CII Punjab.

For MSMEs, there could have been a stronger package. CII had asked the Govt for a MSME Exchange, streamlining of cost and availabilityoif credit and greater flexibility in labour laws said Mr. Ashok Tandon, Member CII Northern Regional Council. However, we welcome the step on doubling of the corpus for Micro Finance Development & Equity fund and capital gain exemption for small companies converting into Limited Liability Partnerships.

Ms Charu Mathur added that from the Northern Regional point of view, the state of Jammu and Kashmir has managed to get special focus on the budget with a Rs 500 corers allocation for small and micro power projects for Ladakh and a promise of employment to 2000 Kashmiri youth in Central Para-Military Forces. The areas to which green revolution is to be extended also includes Eastern UP. In addition Rs 1,200 crores provided for drought mitigation efforts in Bundelkhand region, which is largely in UP. Focus on Backward regions with enhanced allocation of Rs 7,300 crores towards the Backward Region Grant Fund will go a long way to work out an integrated development of these areas.

She however rued the fact that Ludhiana as the hosiery centre of the North in India has been neglected in the budget. "We welcome the package for Tirupur Textile Cluster (Tamil Nadu), we would have hoped for a similar rejuvenation package for Ludhiana Hosiery Cluster" she said.

Rural healthcare, strengthening of the Rural Regional Banks, decreasing the Mobile phone cost, all will move towards integrating Bharat into India, feels CII.

Source : Equity Bulls

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