peoples views on budget

7/30/2019 Peoples Views on Budget

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http://www.thehindubusinessline.com/opinion/columns/s-s-

tarapore/article1497897.ece?homepage=true

The Union Budget for FY2012 is a growth oriented budget that seeks to build on

Indias strengths and to address the challenges that we face. In line with this

approach, the budget seeks to build on our growth drivers through infrastructure

and social sector development, address challenges of food inflation and of fiscal

management and to promote inclusive growth.

Overall, the budget focuses on areas requiring significant investments, while

seeking to take forward the process of fiscal consolidation. The priority accordedto achieving greater economic inclusion and addressing the challenges that we

face will stand the economy in good stead as it reverts to a sustained high growth

path.

The budget has highlighted some challenges in the Indian economy which need to

be tackled urgently. One challenge is fiscal consolidation ensuring stability of the

growth process. The budget has moved into inflation control mode by focusing on

management of the supply side and being in sync with a tightening monetary

policy. The thrust to rice producing Eastern region, pulses, coarse grains, edibleoils and vegetables along with support for storage and transportation will improve

agricultural supplies.

The FM has thus presented a finely nuanced budget against the background of

growth gaining traction but inflation also getting more entrenched while material

economic and policy risks abound in the global economy. The budget has sought to

give a fillip to the growth momentum, catalyse investment in infrastructure, power

and rural sectors, while at the same time ensuring fiscal consolidation. In sum, the

budget is development oriented with a range of growth promoting initiatives.

Neeraj Swaroop, regional chief executive, Standard Chartered Bank

This was an important Budget as the Indian economy is facing a variety of socio-

economic issues which needed to be addressed. The finance minister has touched

upon several key issues such as the fiscal deficit, infrastructure development, and


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social spending. It has also supported growth by not raising taxes and raising the

exemption limit on personal income. For the financial sector, steps to raise the

limit on foreign institutional investments in infrastructure bonds and to allow these

institutions to invest in domestic mutual funds are hugely positive for encouraging

international capital flows into India.

Sajjan Jindal, VC and MD, JSW Steel:

Finance Minister has struck a fine balance between growth and inflation and has

also given a strong indication of continuing on the reform path. FM has rightly

resisted the temptation to increase the excise duty thereby giving out positive

signals to the industry and to the India growth story.

FM has shown the courage to tackle the root cause of the malaise of black money.

Habil Khorakiwala, chairman, Wockhardt:

The budget has a major focus on agriculture, infrastructure, education and bankingand finance but it is a disappointment for healthcare which is a key sector that

requires a major thrust from the government. The decision to implement 5% tax on

hospital and diagnostic services will make healthcare more expensive.

The lower fiscal deficit target is commendable. The cut in many import duties can

act as a step to check inflation. The GDP target of 9% looks good and realistic

given the growth.

Pharmaceuticals

The pharma industry was not very happy with the Budget proposals. It was

expecting lots of incentives and tax reliefs for the future growth and to be

competitive in the domestic as well as overseas markets. The industry now hopes

for some relief measures to be included before the passage of the Budget.

Vinita Singhania, president, Cement Manufacturers Association and MD, JK

Lakshmi Cement:

From the perspective of the cement industry, the budget has been quite a

disappointment.The disappointment gets compounded because the Finance

Minister in his speech had mentioned relief to the cement industry by way of

changing the basis of levying of excise duty. Govind Shrikhande, CCA and MD,

Shoppers Stop


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This was supposed to be a transition budget as explained by the honorable finance

minister. But looks more like a `khatta` budget. Although it has a lot of

announcements on GST, DTC, UDI- it has very little to show for the retailindustry.

Sandeep Reddy, MD, Gayatri Projects

The finance minister`s budget for 2011-12 is expected to boost investment in theinfrastructure sector, which will trigger economy on a growth trajectory to achieve

9% of growth rate.

The proposal to introduce special infrastructure debt funds to attract foreign

financing in infrastructure will certainly help the robust growth of infrastructure

sector in the days to come.

P Kishore, managing director, Everonn Education

We congratulate the finance minister for increasing the allocation for education

sector by a good 24% to Rs 520.57 billion and that of Sarva Sikha Abhiyan by

40% at Rs 21 billion will give the much needed boost to the education sector.

Education forms the backbone of economic development.

Peter Kerkar, director, Cox and Kings

The increase in service tax for air travel will not have a major impact ontravel as the travel industry is growing at double digits and the hike is minimal

especially for domestic travel. Air fares have been climbing for the last three

months due to increase in fuel prices, but this has not deterred passengers from

travelling.``

Kiran Majumdar Shaw, chairman and MD, Biocon

The Minister has totally excluded the promising Biotechnology sector, failing to

make provisions for the funding the industry requires. No steps have been taken to

enable scientific and technological advances or boost innovation.

This Budget has not taken any imaginative decisions that can make a difference to

India, its citizens and its industry. I would rate this budget no higher than 5.5 on a


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scale of 1 to 10. The UPA government will have to do a lot more to supercharge

India and enable inclusive growth.

SANJAYA BARU: The finance minister himself claimed that this was not a Budget speech in

which he was coming forward with major initiatives as such but he was making use of the

opportunity of an improved growth performance to manage his fisc, reduce the revenue andfiscal deficit, to bring about transparency in tax administration and to initiate steps toward tax

reform and introduction of goods and services tax as well as financial sector reforms, and

hopefully a greater opening up of the economy with foreign funds flowing into infrastructure and

mutual funds.

It meets my expectations, but not my hopes!

PARTHASARATHY SHOME: I think at the broader macro level, I would say that the way theprojections have been made in terms of GDP, its quite optimistic, or rather unexplained.Because, if I look at how 2010-11 turned out, the rate of growth of agriculture was at so high a

level that it is completely out of any trend on agricultural growth rates. this is a bit of a rosy

picture in terms of our future growth.

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