CII for checking rising fiscal deficit

A CII delegation today called on Uttaranchal Chief Minister N D Tiwari and submitted a pre-Budget memorandum stressing on the urgent need for controlling expenditure and raising revenue to check the rising fiscal deficit.

Some of the key recommendations that have been spelt out in the document include urgent need for earnest measures to control revenue deficit, necessity to improve physical infrastructure both for Industry and tourism, reduction in stamp duty rates and early implementation of the draft APMC Act.

The Budget session of the Uttaranchal assembly begins on March 22.

Expressing concern over the rising fiscal deficit, the memorandum pointed out that during April-October 2005, the revenue expenditure rose by 21 per cent over the same period last year.

Specific recommendations on infrastructure included better air, rail and road connectivity for Uttaranchal and infrastructure in and around the upcoming industrial and tourist hubs. The widening of the Delhi-Dehradun National Highway and establishing 4-lane connectivity between Kumaon and Garhwal regions within the state should be accorded high priority, the memorandum said.

It pointed out that although the New Industrial Policy of the government grants industry status to tourism, the sector in practice has not started receiving the benefits of the same. For example, the sector was still being charged commercial power tariffs, and not lower tariffs applicable to the industry. To promote tourism in the state, CII further recommended simplification of rules, lowering of bar licence fee, having local representation on the Uttaranchal Tourism Development Board and above all the physical infrastructure.

To facilitate a conducive environment for industrial growth, the memorandum recommended creation of adequate and appropriate infrastructure in the industrial estates. The single-window system should be strengthened and should facilitate not only the initial approvals to set up the project, but also look into the requirements of obtaining further licenses necessary to commence production, it said.

Elimination of Inspector Raj is another key recommendation of the memorandum. To that effect, a common and transparent inspection should be carried under all pollution and labour laws once a year as per advance schedule and with prior intimation, it said.

Acknowledging the pivotal role of agriculture in the state's economy, CII has suggested finalisation of the APMC Act. In order to help leverage the state's rich bio-diversity and the presence of all major climatic zones, the memorandum makes specific recommendations on floriculture, tea plantations, herbal and medicinal plants. It has also made recommendations on infrastructure for the food-processing sector.

The memorandum also made specific recommendations for the IT, biotechnology, power, paper & pulp and agro/food processing sectors.

The chief minister gave his assurance to the CII Uttaranchal State Council that the state government will consider the recommendations submitted by the CII. Earlier, the delegation also met Chief Secretary M Ramachandran and submitted the memorandum to him.

The CII delegation, which presented the memorandum, comprised Hemant K Arora, chairman, CII Uttaranchal State Council, and Lovelena Mody, vice-chairperson, CII Uttaranchal State Council.