Industry & Economy
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Budget
Growth-oriented Budget: FAPCCI
Our Bureau
Hyderabad
,
March 1
THE Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI) has said the Union Budget for 2005-06 was a good attempt at addressing both growth and welfare objectives.
Mr O.P. Goenka, President, termed the Budget "growth oriented."
Addressing a press conference here on Monday, he said the country could not have sustainable economic growth without human development.
Welcoming the focus on health, family welfare and rural sectors, Mr Goenka said Mr Chidambaram wanted to make the Budget farmer-friendly by pitching for diversification to other crops like fruits, vegetables, pulses and oil seeds.
The special purpose vehicle for the development of infrastructure and the concessions given to pharma and biotech are welcome features. He commended the Minister for the assurance on the SME Development Bill.
Andhra Pradesh will benefit more from the Budget, as the State is strong in almost all the focus areas announced by the Minister.
The ailing sugar industry has been given an impetus. "Sugar will maintain its identity by retaining its sweetness and will not be bitter anymore," he said.
Mr Goenka also welcomed the move to reduce corporate tax from 35 per cent to 30 per cent. He, however, criticised the FM for reducing the depreciation rate from 25 per cent to 15 per cent. "This will discourage new investments and machinery," he said.
The 4-per cent additional countervailing duty on IT items is a retrogressive step. "This doesn't conform to international standards," he said.
"We expected the Government would come out with substantial disinvestment. This didn't happen," Mr Goenka said.
Mr G. Jayaraman, Chairman of the All India Manufacturers' Organisation (AIMO - AP), said it was an employment-oriented Budget with thrust on inclusive economic growth.
The definition of small-scale sector has been widened. He welcomed the rationalisation of taxes both for individuals and corporates.
Both AIMO and FAPCCI are not happy with the 0.1-tax on withdrawals of Rs 10,000 or more in a single day. "This is an unfair attempt to stigmatise legitimate withdrawals from legitimate deposits as black money. This provision should be scrapped," Mr Jayaraman said.
Not electrifying: "It is not electrifying as far as the power sector is concerned," Mr Y. Harishchandra Prasad, Managing Director of Lanco Kondapalli Power, commented.
Keeping in view the Electricity Act, the industry expected that the Government would focus on transmission and generation sectors.
"We can produce power at cheaper costs in the North-East and transmit the same to the power-deficit States in the South. But this calls for heavy investments in developing distribution network," he said.
The Minister should have accorded priority status to the power sector.
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