The Hindu Business Line : India Inc lauds higher allocation for critical sectors

The President of FICCI, Mr Saroj K. Poddar, said that the emphasis on growth and investment is reflected in higher allocation for critical sectors, which should push up the growth rate in the near future.

He welcomed the Finance Minister's focused attention on creation of physical infrastructure in the form of roads, ports, airports and adding to power generation capacity as also on building social infrastructure by way of education, healthcare and rural empowerment.

Mr S.K. Poddar

However, Mr Poddar found the Budget wanting on the issues of disinvestments. He said that the Finance Minister could have pursued the policy of reforms of public sector undertakings.

The President of Assocham, Mr Anil K. Agarwal complimented the Finance Minister for presenting a growth-oriented Budget and said it would take the growth rate of GDP towards the10 per cent mark.

He welcomed the Minister's proposal to support education, micro credit, healthcare and agro sectors. But added that the Finance Minister should have restrained from increasing Service Tax from 10 per cent to 12 per cent till the Goods and Service Tax was brought in. He also said that not much had been done for the pharmaceutical and the power sectors that are key to achieve higher growth rate.

Calling the Budget "inclusive" President of Confederation of Indian Industry, Mr Y.C. Deveshwar, complimented the Finance Minister for increasing the budgetary allocation for social and rural sectors without introducing new taxes. This has been possible, he said, only through efficient tax administration and expanding tax base.

He lauded the Finance Minister's efforts to control the deficit situation.

The revenue deficit for 2005-06 has been contained at 2.6 per cent and the fiscal deficit at 4.1 per cent that are below the budget estimates of 2005-06.

The President of PHD Chamber of Commerce and Industry, Ms Sushma Berlia said that the Finance Minister missed the opportunity to reiterate Government's resolve to accelerate economic reforms. She also said that not much has been done for expenditure control by removal of non-merit subsidy.

The President of Indo-American Chamber of Commerce, Mr P. Prabhakar said that various proposals like reduction in excise duty on aerated water and reduction in customs duty for a wide variety of goods would give the right impetus to the Indian industry.