Interim Budget Echoes

Ahmedabad

It was not a full-fledged Budget, but just a vote-on-account. Overall, fiscal deficit is under control, which is very important and adds to the feel-good factor of the country.

This budget is going to help the market in the long run. Another important aspect is the merger of 50 per cent of the DA with basic salary for the government employees.

Such announcements should be made with caution as they would spiral the government expenditure and widen the deficit. Gujarat has more international presence than any other state in the country and the state should have been at least allocated an international convention centre.

Sanjay Gupta,
Chief Executive Officer of Adani Group

The finance minister has avoided playing to the gallery by not announcing too many populist measures in the interim Budget though it was expected.

But unfortunately, there is nothing much for the infrastructure projects including the special economic zones in the Budget. We expected the government to announce more fiscal incentives for the development of SEZs.

Lack of measures regarding the oil and gas sector has disappointed us. However, reducing tax on the shipping companies will help the shipping industry and strengthen the Sagarmala project initiated by the government. There is no announcement for the Ahmedabad Airport which lack in infrastructure.

Jehangir Cama,
Managing Director,
Cama Hotels

Gujarat has indeed been treated badly in the interim Budget. I believe minister Jaswant Singh has meted out a raw deal to the state. There has not been a single provision for a hospital, airport or a convention centre.

Cities like Hyderabad and some of the states have been given sops like international convention centres, while Gujarat did not get anything of that sort.

Others points mentioned in the Interim Budget are on the expected lines although I do not think there was any need for a further increase the income tax exemption limit stipulated. As an industrialist of Gujarat, I feel let down as absolutely nothing has been offered for the state in the Interim Budget.

A K Srivastava,
Managing Director,
Essar Power Ltd

The central government has a clear focus on keeping the power tariff low. Among the measures taken in the interim Budget, extending fiscal benefits from 2006 to 2012 is a step in the right direction.

This step of extending the fiscal benefits will go a long way in keeping the power tariff low. Extension of exemption of excise duties on residual fuel oils for generation of electricity with retrospective effect will also result in lower power tariff.

Cenvating the CVD for the power sector is also a welcome step in this direction. This initiative will bring down the capital cost of power generation projects down and hence lower the tariff.

S K Singh,
Chief General Manager,
State Bank of Saurashtra

The State Bank of Saurashtra has already been providing loans to the agriculture sector and the SSI sector at nine per cent, but this rate is for loans of up to Rs 50,000. Above the limit of Rs 50,000 , loans to these two sectors have recently been revised and fixed at 11 per cent.

We are meeting again in a day or two to work out revised rates of loans in detail. The new rates for loaning to the agriculture and small-scale industry sectors for different slabs will subsequently be finalised by us.

However, even before the finance minister's announcement of nine per cent rate of interest for the agriculture sector, we have been financing at a lesser rate and most of the borrowers fall in this bracket. The Budget is favourable.

M P Sinha,
Managing Director,
Steelco Gujarat Ltd

Although this was a interim Budget and not much could have been done, the government has done well to increase outlay for power and other infrastructure.

This will boost the steel industry and we welcome it. Also, the finance minister has announced the intention to target a fiscal deficit of 4.8 per cent, which is far below the projected figure. Given the constraints under which the interim Budget was passed, the announcements far exceed the expectations of the steel industry and the announcements made by the finance minister are welcome.

This is a good budget as far as the steel industry is concerned and it is praiseworthy that although a fiscal deficit of 5 per cent was projected, it, in fact, came down to less than that. It is a good sign for the overall industrial scenario.

Shreyas V Pandya,
President, GCCI

The budget failed to make any major announcements which would give an impetus to the trade and industry. However, once the new government comes to power, it would make all-out efforts to spur the growth of the economy.

It was just a vote-on-account and nothing much was expected out of it apart from certain anticipations of relief in the tax structures, which, however, the ministry did not change. The budget did not offer anything to trade and industry. Apart from mere extension of the packages for the industry in the Kutch region, the budget did not offer anything to Gujarat.

H R Pandey, president, Sanghi Cement

There was nothing specific in the today's budget. However, it shows that the government has understood the importance of reducing transaction cost by cutting down on customs and excise, which will have a great impact upon the economy in the long-run.

There was no anticipation of relief in the current tax structure. E-filing of returns would result in shorter processing time and relief to the assesses.

I feel that the current Budget will help the country achieve the targeted growth rate of around eight per cent and a two-digit growth rate for Gujarat.

Amit Goradia,
Chairman, State Council,
FICCI

The fiscal measures proposed by the finance minister would have a positive impact on the exports as the transaction cost would come down especially by e-filing of excise returns and self-assessment of customs clearance.

The cut in stamp duty by over 50 per cent would result in higher utilisations of funds by the private sector. Inflation would be 4 to 4.5%, within healthy economic growth.

Salary sops for central government employees could lead to inflationary pressure and have a snowballing effect on the state finances. There would be sustainable demand which ultimately would lead to higher level of growth and employment opportunities.