The Hindu Business Line : Fiscal deficit must be kept under control: GMCI

THE Greater Mysore Chamber of Industry (GMCI), while commending the Budget presented for the year 2004-05 for showing a modest surplus, has expressed concern over the increase in fiscal deficit from 3.54 per cent to 4.26 per cent. It reflected that the fiscal prudence measures were not adopted adequately.

The coalition Government needs to carefully pursue the objective of keeping in check the fiscal deficit, particularly by reining in non-plan expenditure and salary expenditure, said Mr S. Chandrasekhar, President of GMCI.

In his reaction to the Budget proposals, hesaid the proposal to remove the four per cent concessional tax on diesel and other petroleum products used for captive power generation would be a burden on the industry.

"Adding insult to injury, the Finance Minister has simultaneously raised the sales tax on diesel by 2.5 per cent to 20 per cent. GMCI's plea for removal of electricity tax on captive power generation has also fallen on deaf ears", he said.

The steep increase in ST on computer software and hardware and electronics was a retrograde step and it defeats the Government's promise made in the Common Minimum Programme to encourage the information technology and biotechnology sectors.

"The Finance Minister has very rightly carried forward the process of rationalisation and simplification. The welcome features of the Budget relate to higher allocation for rural and agro-related programmes with specific emphasis on higher allocation for healthcare, education, and drinking water", Mr Chandrasekhar said.

The Finance Minister should examine some of the anomalies and introduce corrective steps while piloting the Finance Bill in the Legislature, he said.

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