New Delhi: Indian industry on Wednesday expressed disappointment over Finance Minister P Chidambaram's Budget for 2007-08, raising concerns on lack of measures to increase productivity and for losing an opportunity to provide relief to the corporate sector.
"This Budget is disappointing as there has been no steps announced to increase productivity in agriculture, electricity and other sectors which are not producing up to their potential," R Sesashayee CII President said.
He pointed out since revenues from peak customs and excise were increasing, this could have been a time to reduce excise duty to 20 per cent, if not 15 per cent overall, which would have been in line with Kelkar Committee Report.
Managing Director Ashok Leyland, R Seshasayee, said that the budget was beneficial for health, education and rural sector. "Economic measures however, need to be resolved by policy measures," he added.
Hero Honda MD Pawan Munjal said, "No big reforms, it was a populas Budget with focus on Bharat Nirman, agriculture and healthcare. No direct focus on the auto sector."
FICCI President Habil Khorakiwala said a wrong signal has gone to the corporate world as the government has increased cess and dividend distribution tax.
Bharti Enterprises CMD Bharti Mittal said, "The budget had a rural-agri thrust. Although there were no concrete provisions for corporate India, it is doing well at this point in time.It addresses the need of the current time.
"One does not understand how the multiple taxes should be charged. I think the feeling of the chamber is that the Finance Minister has lost an opportunity of providing relief to the corporate world," Khorakiwala said.
Congress MP Rahul Bajaj says that the budget could have been bad but under the given situations it is good: "In the present circumstances, from the corporate point of view it would have been a very bad Budget, but it is not. Baring the divident distribution tax, it is a very good Budget."
RSP MP Abani Roy says that the Budget should satisfy the people of the country. If the Finance Minister is able to rein in the markets then the budget is good.
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