International BusinessChambers' Reaction: PHD Chambers: No big-ticket reforms
PHD Chambers: No big-ticket reforms
Terming it as an "expenditure Budget", the PHD Chamber pointed out that such focus would create purchasing power in the hands of the poor which, in turn, would stimulate growth in the economy. Satish Bagrodia, President, PHD Chamber, said that the Budget was on expected lines, reflecting the government’s commitment of satisfying the aspirations of the aam aadmi. He said, “There is considerable emphasis on public expenditure to fulfill our developmental priorities.”
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The Chamber was, however, disappointed that there were no radical expenditure cuts and no concrete step were taken to improve the delivery mechanism. Bagrodia said, the fiscal deficit may result in credit squeeze for trade and industry. He further said, the steep rise in the Minimum Alternate Tax from 10 per cent to 15 per cent of book profits is a matter of concern.
Tthe government should have announced the phasing out of Central Sales Tax in the next year, according to PHD Chamber officials. Also that provision should been made to clear the outstanding and future liabilities of TUF.
Bagrodia further said the Budget has lost the opportunity to carry forward second-generation reforms which are urgently needed in the scenario of global slowdown. There are no big ticket reforms on FDI, rationalization of subsidies, or even disinvestment, he added.
On the positive side, PHD Chamber was pleased with the government’s thrust on agriculture and rural devlopment. Bagrodia said, “There is a jump in expenditure in agriculture which is critical for improving farm productivity and rev up purchasing power of the rural populace. Similarly, a step up in investment in both physical and social infrastructure would go a long way to stimulate demand in the economy.”