Regional chambers hail Rajasthan Budget

"This is a futuristic, forward-looking budget," R K Poddar, the CII's Rajasthan State Council chairman, said while reacting to the Rajasthan budget, presented by Chief Minister Vasundhara Raje here on Wednesday.

He said the budget had taken into consideration all aspects, which will prove to be fruitful for the growth and development of the economy of Rajasthan. "Stress on education through expanding the scope of the mid-day meal scheme will enhance the literacy rate in Rajasthan," he said.

The CII said that the formation of income tax free Mid Day Meal Trust will surely increase the contribution of general public and industry for the cause.

Increasing the scholarship of girls for their involvement in agri education is a welcome step. Social aspects like health, nutrition, safe drinking water and steps to reduce infant mortality rate have been well taken care of.

Chairman CII Rajasthan State Council expressed happiness over state government agreeing to some of the recommendations of CII given in the pre budget memorandum. Introduction of VAT from April 1 2006 was desirable for the overall growth of the industrial sector in the state. Removal of cess levied on captive power production is a noteworthy step. Withdrawal of cess on captive power for the industry in the state will provide relief to the industry and help in bringing investments to the state. Permission to produce power from lignite is a welcome step. CII has also welcomed the removal of entry tax on the raw material for electronic goods, 50% reduction of sales tax on establishment of auto part units would attract more investment in this field. The only thing missing in the budget - 06 is the announcement of the new industrial policy for Rajasthan.

CII has also welcomed the government's approach to strengthen the thrust areas of growth like tourism, water, road connectivity, handicrafts, etc. Increasing total outlay from Rs 24.8 crores to Rs 50.03 crores for tourism industry will help increasing the tourist footfall at places of historic importance. CII now is eagerly waiting for the new hotel policy, which state government will announce by May 2006.