‘Aggressive, forward looking, growth-oriented Budget'

The Union Budget 2011 presented in Parliament recently was dubbed as aggressive, forward looking, and growth-oriented by the speakers at a ‘Budget talk' organised by The Hindu-Business Line in association with Tata Photon at P.B. Siddhartha College of Arts and Science here on Wednesday.

A panel of eminent speakers from diverse fields including, taxation, banking, agriculture and industry gave a quick overview and analysis of the Budget.

Stating that the Union Government articulated its commitment to fiscal consolidation, infrastructure development and agriculture growth they felt that the Budget looked very positive from the macroeconomic point of view in general and agricultural and infrastructure sectors in particular.

Fiscal consolidation was a must for complementing monetary policy efforts to tame inflation, more particularly food price inflation. And, it became imperative for the Government to focus on measures to tackle the rising demand and stagnant production in the agricultural sector, they felt.

Axis Bank Vice-President and Circle Business Manager, Mr N. Parthasarathy, said that two significant announcements — the insurance legislation and voting rights of foreign investors — were made in the Budget. Removing the cap on voting rights of shareholders would encourage foreign promoters and investors to invest higher amounts. Secondly, the insurance legislation would increase the FDI limit to 49 per cent from the current 26 per cent, he said.

Investments in R&D

Agri Gold Exims Ltd Managing Director, Mr Mani Sharma Avva, pointed out that the investment in research and development (R&D) was meagre as only 0.5 per cent of the GDP was earmarked for it, while developed nations were spending 2-3 per cent. Incentives should be given to the private sector for their participation in procurement, storage and distribution activities, he said, adding, agriculture planning and crop diversification were required.

The Confederation of Indian Industry Vijayawada Zone Chairman, Mr Y.V. Krishna Mohan, said that the move to cash subsidy for petrol and kerosene to BPL families is a bold move. It would remove the inefficiencies and plug loopholes in the public distribution system, he felt.

The Southern India Regional Council of Institute of Chartered Accountants of India, Vijayawada branch Chairman, Mr P. Subbarayudu, said the Budget laid down a constructive road map for economic growth and has taken steps to align the existing tax structure with the proposed GST and DTC framework.

Siddhartha Academy Secretary, Mr S. Venkateswarlu, College Business Administration Department Head, Mr Rajesh C. Jampala, PG Centre Director, Mr K. Krishnamurthy, The Hindu Regional General Manager, Mr K. Chandrasekharan, also spoke.