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Indian Industries Association (IIA) said the Budget would not improve the economic condition of UP, since most of the expenditure had been allocated for unproductive and populist activities.
Industry contributes 24% to the Gross State Domestic Product (GSDP) of UP, which is almost equal to the contribution of agriculture. Yet, direct budgetary provisions for promotion of industry, especially small scale, was nil, IIA lamented.
Yesterday, chief minister Akhilesh Yadav, who also holds the finance portfolio, had presented the Budget of Rs 2,21,201 crore.
“Although, the state had already announced Infrastructure & Investment Policy 2012, Food Processing Policy 2012, IT Policy 2012 & Solar Energy Policy 2012, yet we could not find any budget provision to fulfill the promotional announcements made in these policies,” the chamber said.
For example, provisions of Rs 400 crore had been announced for populist Solar Energy Rickshaw Scheme, but there was no provision for incentives in the Solar Energy Policy for setting up solar energy power plants.
IIA president Jugal Kishore said provision of Rs 26,141 crore for Infrastructure and
Rs 11,732 crore for energy sector would indirectly help industry to some extent, but these provisions are negligible compared to the demand and the size of UP.
Meanwhile, Assocham Northern Regional Development Council Chairman Lalit Khaitan lauded Yadav for managing fiscal deficit within 3% of the GSDP despite “meeting his populist commitments to the voters.”
He welcomed the budget saying it would encourage inflow of fresh private investments, spur job creation, create infrastructure and promote industrial sector.
The projects announced in the budget should be strictly implemented and monitored and the government should continue focusing on infrastructure development, improving the power scenario by adding capacities and creating conducive environment for setting up nuclear power plants in UP, he said.
