While acknowledging that this was an interim budget, industry was expecting policy measures to stimulate growth, given the difficult economic scenario.
Real estate association, Promoters Builders Association of Pune (PBAP), said it was expecting the Interim Budget to be more than a vote-on-account, as "the times are challenging and special measures are needed to be taken" to help employment and growth.
PBAP President Lalit Kumar Jain, in a statement, said he was dissapointed with the Interim Budget.
Gaurav Dua, Head-Research, Sharekhan Ltd, echoed these views, saying the budget failed to implement measures to provide further stimulus to economic growth through fiscal concessions to specific industries.
"The finance minister has maintained status quo on the direct and indirect tax structure. Moreover, the fiscal deficit estimates of 6% for 2008-09 are also higher than street expectations," He said in a statement.
Dun & Bradstreet said Pranab Mukherjee stuck with the conventions of an interim budget and did not announce any policies to trigger revival of the economy from the current slowdown.
"Although the outlay on certain infrastructure projects have been increased, it is doubtful if this would be enough to kick-start investment at the required levels," Kaushal Sampat, COO, Dun & Bradstreet India, said in a statement.
He added: “In line with our expectations, the fiscal deficit has surged and stands at around 7.8% of GDP in FY09 (including off-budget liabilities). Although the high fiscal deficit has potential risks for the economy in the future, it is inevitable given the need for substantial increase in Government expenditure and the limited scope for revenue mobilisation."
Counterview
DHL Express seemed satisfied with the Interim Budget, saying it was delivered more in keeping with the overall long term sustainable growth in keeping with the inclusive growth agenda.
"For us, as part of the logistics sector, the impetus in Infrastructure development is a positive step forward. Under the PPP mode, nearly 54 central sector infrastructure projects that cover airports, roads, ports and railways have been given in principle approval," Malcolm Monteiro, SVP & Area Director – DHL Express, South Asia, said in a statement.
