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Raise external debt-GDP ratio to 25 pc: CII
Our Bureau
New Delhi
,
Nov. 14
Raise external debt-GDP ratio to 25 per cent and the proportion of R&D expenditure to one per cent of GDP, the Confederation of Indian Industry (CII) has demanded.
In its pre budget memorandum, the chamber has also demanded infrastructure bonds to be issued as also taxing more services as a way of generating resources.
The chamber is in favour of non-merit subsidies to be redirected to productive uses and the subsidies to be reduced by Rs 15,000 crore in 2007-2008.
"We are not against the system of subsidies, but they should be granted where they are put to productive uses, for example in agriculture," said the CII President, Mr R. Seshasayee, while releasing the memorandum.
To create an infrastructure in the country, the chamber has mooted raising the gross capital formation in infrastructure to 11 per cent by 2011-12.
The chamber also mooted creation of a Central R&D fund for the use of small and medium enterprises.
This fund would be contributory in nature and the Government should put in initial corpus.
The private sector should voluntarily contribute and get 200 per cent tax deduction on contribution, according to the chamber.
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