The Hindu Business Line : 'Centre must focus on rural economy'

THE trade and industry associations have asked the Union Government to focus on strengthening the rural economy and infrastructure in the General Budget to be submitted on Thursday.

The Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI) expected that the Union Budget would be pro-agriculture and pro-employment.

Speaking to Business Line on expectations from the first Budget to be submitted by Dr Manmohan Singh Government, Mr O.P. Goenka, President of FAPCCI, wanted the Government to announce support to agro-based industry. "We expect the Government to announce special schemes for generating employment in the rural sector. We also seek schemes to rehabilitate sick industries," he said.

He, however, asked the Government to clarify its stand on disinvestment.

Mr Ramesh Datla, Chairman of Confederation of Indian Industry (CII-AP), wanted the Government to focus on strengthening rural infrastructure. "We want the Government to make construction and concreting of village roads a major priority for the current fiscal," he said.

Asking the Government to take measures to boost rural housing, Mr Datla felt that rural housing loans of banks as well as housing finance companies should be counted as a part of the priority sector loans and advances.

Also, the rural housing portfolio of banks and housing finance companies should be accorded infrastructure status under a variation of Sections 80IA and 80IB of the Income Tax Act.

The CII also wanted the Government to allow private companies to invest in wasteland development.

Mr Datla also wanted the Government to reduce Corporate Tax rate from 35 per cent to 30 per cent and do away with the surcharge of 2.5 per cent. He asked the Government to ensure the implementation of Value Added Tax (VAT) with effect from April 1 next.

Mr G. Jayaraman, Chairman of All-India Manufacturers' Organisation (AIMO - AP), felt that both Dr Manmohan Singh, Prime Minister, and Mr P. Chidambaram, Finance Minister, would continue the reform process they had initiated. "We want the Government to reduce Corporate Tax," he said.

Mr B.V. Rama Rao, President of Federation of Andhra Pradesh Industries (FAPI), sought the UPA Government to enforce a uniform power tariff across the country. He asked the Finance Minister to reduce interest rates in order to make the local entrepreneurs to compete with the global players.

More Stories on : Budget | Rural Development | Economy | Andhra Pradesh

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