India Inc doesn't buy govt's GDP forecast

Corporate India seems to disagree with the government's gross domestic product (GDP) growth estimate of 8.1 per cent for the current fiscal (2005-06).

In a snap poll conducted by the Confederation of Indian Industry, 89 per cent of the respondents "" chief executive officers (CEOs) from organisations across diverse sectors "" opined that the GDP would clock a growth rate of about 7.7 per cent this fiscal.

The poll revealed a major concern for the lack of adequate infrastructure as 77 per cent of the CEOs voted in favour of directing more than 3 per cent of all public expenditure towards the creation of infrastructure facilities.

On the hot topic of the fringe benefit tax, about a third of the CEOs felt that the tax would be done away with, while 53 per cent hoped that the Budget would "simplify" it. About 67 per cent felt that the surcharge on income tax, which was raised to 10 per cent, was likely to remain unchanged, while 22 per cent saw its possible withdrawal in the Budget.

Opinion was divided on the issue of wealth tax too, with 53 per cent of the CEOs predicting that it would be eliminated on account of the huge cost of collection.

As much as 83 per cent felt that a time-bound roadmap for the implementation of fully-integrated goods and services tax (GST) would be spelled out this time.

Fiscal responsibility and budgetary management (FRBM), 70 per cent said, was a necessary criteria for sustainable high growth.