Industry chambers hail rural sector focus

The industry chambers have hailed the state Budget which was presented in the Assembly today by finance minister K Rosaiah.

The state chapters of Federation of Indian Chambers of Commerce and Industry (Ficci) and the Confederation of Indian Industry (CII) welcomed the focus on irrigation, agriculture, employment generation, health, education and poverty alleviation.

Ramesh Datla, chairman of the Confederation of Indian Industry-Andhra Pradesh, said that the focus on developmental and infrastructural spending on one hand and development of human resources on the other was a welcome move by the state government.

"The state Budget reflects a revenue deficit of Rs 1,970.50 crore which is 0.97 per cent of the gross state domestic product (GSDP) and the fiscal deficit is estimated to be Rs 7,569.99 crore which is around 3.74 per cent of GSDP. It is a cause of concern," Datla said.

He, however, added that a 21.15 per cent increase in plan outlay was heartening. "Alternative method of funding power subsidy has to be worked out," he said.

C Parthasarathy, chairman of Ficci's Andhra Pradesh council, said that the initiatives toward development of agriculture, rural development and education showed the state government's commitment to development of agriculture and social sectors in the state. Agriculture is going through a difficult state of affairs and the government's attention to it was timely, he said.

He also had a word of praise for the state government for allocating a higher plan outlay at over Rs 1,500 crore as compared to Rs 1,200 crore allocated last year. He acclaimed the state government for increased allocations for irrigation, education, tourism and infrastructure development.

With regard to the industry and allied sectors, Parthasarathy said the government had paid attention to development of basic industries and rehabilitation of sick industries.

He, however, said that the state government should constitute a high-powered committee to suggest ways and measures to attract new investments and also to address various issues of concern to the industry.