Terming the Union Budget 2011-12 tabled by Finance Minister Pranab Mukherjee as "better than expected", CII Chairman and Executive Director of Mahindra and Mahindra, Arun Nanda, said it is in line with industry expectations.
Though Nanda said the government's commitment to bring down the fiscal deficit to 4.6 per cent is laudable, he said, "it was disappointing as the Finance Minister has not given a timeline as to when it would be able to achieve the same."
On the positive takeaways of the budget, Nanda said that though increased allocation of funds in infrastructure, health and agriculture reiterated the government's focus on inclusive growth, it could have focused more on education.
"The allocation in education could have been higher to give a major impetus to the sector," Nanda said.
The Finance Minister in his budget speech said that about 70 per cent of the Indian population will be of working age by 2025 and this calls for strong reforms in the education sector.
On the financial sector, Nanda said, "we welcome the tabling of the GST Bill, Companies Bill and other Bills for financial sector reforms in the current session of Parliament. Besides, lowering of tax rate on dividends received by an Indian company from its foreign subsidiary to 15 per cent is expected to help increase fund flows to India."
He expressed disappointment saying that "there could have been more anti-inflationary measures and greater focus on infrastructure."
