Economy

Budget funds for Kerala not enough, says trade body

Our Bureau Kochi | Updated on March 19, 2012 Published on March 19, 2012

The Kerala Chamber of Commerce and Industry was of the view that the funds allotted in the State Budget to various sectors and development schemes are not sufficient given the current financial recourses available in the State.

Mr K N Marzook, Chairman, Kerala Chamber of Commerce and Industry, pointed out that although there is an increase in the allotment of funds for various developmental activities in key areas such as agriculture, industry, tourism, IT, education and infrastructure, the demands for more resources is evident in these sectors.

According to the direction of Union Finance Commission, earnest efforts are taken to control the deficit in the Budget to less than 1 per cent. Special emphasis has been given for promotion of entrepreneurship and Public Private Participation, he said.

The introduction and promotion of additional skill development program, Rice Bio Parks, Coconut Bio Parks, Green House Projects, Development of Vizhinjam Terminal, Kannur airport, speed up the bye-pass projects in Kollam, Alappuzha and Wayanad Churam, Calicut Mono rail, Development study of Trivandrum-Kasargod High Corridor project – all these are indeed a welcome move.

The allotment of Rs 300 crore for development of infrastructure to attract investments in major cities, setting up of integrated check-posts in main areas and promotion of e-filing are to be commented, he said.

However, on the taxation sector, he said the increase of VAT from 4 per cent to 5 per cent and increase in the excise cess may create an adverse impact in inflation, even though the Finance Minister has reduced the VAT percentage in essential food commodities from 4 per cent to 1 per cent.

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Published on March 19, 2012
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