The Hindu Business Line : CII-Kerala hails Budget proposals

Kochi, July 7 CII-Kerala has said that the Union Budget is reform-oriented and would propel revival of the economy with more thrust on infrastructure and rural development.

Mr M.S.A. Kumar, Past Chairman, said that allocation of Rs 25 crore for the campus of the Aligarh Muslim University in Malappuram is highly appreciated.

He said that increase in infrastructure investment to over 9 per cent by 2014 and hike in JNNURM allocation by 85 per cent would give a boost to infrastructure development, both in the urban and rural sectors.

The allocation under NREGS increased by 144 per cent to Rs39,100 crore would give a fillip to the increased economic activity in the rural sector, he added.

The CII Chairman, Mr Sanjaya Mariwala, said that the abolition of FBT and scrapping of surcharge on personal income tax are a positive change for the industry. CII had called for maintaining the peak customs duty in light of adverse global conditions.

CII Vice-Chairman, Mr P. Ganesh, felt that while the Budget has made significant allocations in important areas such as infrastructure, education, employment and power sectors, some changes expected in corporate tax did not happen.

The employment exchange online is a welcome step. The increase in allocation of 23 per cent on NHAI would be beneficial for the construction and automotive sector.

The Government announced loans at a subsidised interest rate of six per cent for farmers who pay their dues on time, which is one per cent less than what others would get, which is a positive move. Tax exemption for women and senior citizens is a positive move made by the government. However, the increase in excise tax from 4 per cent to 8 per cent on many goods may adversely affect some sectors.

CII also appreciated the steps taken on education, especially to reduce female illiteracy by half in three years. Interest subsidies for economically weaker students, including in vocational education, provision for Mission in Education through ICT and setting up of polytechnics as well as central universities in all districts will help add to India’s human capital.

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