Industry heads and analysts disappointed as budget didn't touch on stimulus package and goods & services tax, nor on direct and indirect taxes
Industry heads and analysts disappointed as budget didn't touch on stimulus package and goods & services tax, nor on direct and indirect taxes
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In the Hot seat: India's acting finance minister Pranab Mukherjee talks to the media after presenting the interim budget at the Parliament in New Delhi yesterday pic/AP |
Bangalore Inc didn't exactly let out a whoop of joy over yesterday's interim budget especially since there was no word on the eagerly-awaited stimulus package.
N N Upadhyay , president of Bangalore Chamber of Industry and Commerce (BCIC), told MiD DAY that he was disappointed.
"The interim budget is a vote-on-account exercise. So you don't expect a great deal. But considering the current state of industry, and going through the disturbances the manufacturing, textile and financial services are undergoing, the industry needs a stimulus," he said.u00a0
"After the election code of conduct is introduced, the government will not be able to announce anything for another three to four months. The centre has itself said that India has lost five lakh jobs in the last quarter. To keep industries running, the government should have announced some stimulus," he said.u00a0
He added that the government's non-planned expenditure was three times more than the planned expenditure. He, however, was happy with the increased allocation for drinking water, rural schemes and approval of 37 infrastructure projects.
"All this shows that the government wanted to please the aam aadmi," he said.
The Confederation of All India Traders (CAIT), the apex body of the trading community in India, said there were no announcements to strengthen domestic trade.
B C Bhartia, national president, and Praveen Khandelwal, secretary general, CAIT, said loads of subsidies would burden the common man with taxes.
"Taxes should be reduced during a slowdown but nothing has been done. There are no steps to ensure more liquidity in the economy. There are no concessions for the realty, steel, automobile, textile and infrastructure sectors. An economic package was needed for the export sector since it had seen a downfall of 17.1 per cent in the last nine months of the current fiscal year," they said.u00a0
The trade leaders said that there was not a word on the goods and services tax in the budget, despite the government's assurance that it would be implemented by Aprilu00a0 2010.
In totality, the budget seems to be a lofty document of declarations, they said.
Status quoGaurav Dua, head of research at Sharekhan, said the budget had nothing for the industry and markets.
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"The finance minister has maintained status quo on the direct and indirect tax structure. Moreover, the fiscal deficit estimates of 6 per cent for 2008-09 at the centre is higher than the street expectations and indicates higher stress on the overall fiscal situation," he said.
