FM SCROES 7/10 MARKS IN ASSOCHAM SURVEY ON BUDGET
19th March – 2012
Finance Minister scored 7/10 marks from 200 CEOs in a Quick Survey conducted by Associated Chambers of Commerce and Industry of India (ASSOCHAM) in their assessment of the Budget proposals 2012-13 on Indian industry.
Over 78% of CEOs appreciated the large allocations made to health care, education, agriculture and rural sectors out of budgeted central plan allocations.
Representatives of cement and real estate industry criticised the FM for increasing excise duty, after the recent hike in the rail freight. This they felt, would raise cement prices and would hurt construction companies and would have adverse impact on infrastructure.
Also increase in the service tax rate from 10% to 12% will raise costs for developers who are already reeling under high input costs and increased burden may be passed on to end users. This depressed the Finance Minister's score margins.
Yet 75% of CEOs patted Finance Minister for presenting an investment-friendly budget which they feel will ensure inclusive growth by adequately attacking concerns of most vulnerable sections of society.
The CEOs that appreciated budget the most, comprised representatives from small scale, pharmaceuticals, commodities, agriculture, aviation and consumer durables industry, says ASSOCHAM Secretary General, Mr. D. S. Rawat who released the survey here today.
Majority of the CEOs have noted that higher central plan allocations of Rs.6,51,509 crores have been allocated for social sector particularly, health and education should not only take care of the weaker sections of society in integrating them with mainstream, but also ensure investments with inclusive growth, said Mr. Rawat.
Over 80% of CEOs have admired the FMs proposal for allowing ECB up to $1 billion to help meet immediate funding needs of aviation sector. FM also proposed full exemption from customs duty and countervailing duty to aircraft spares, tyres and testing equipment. This long standing demand of the sector regarding these exemptions would boost India's nascent maintenance, repair and overhaul (MRO)
Agriculture, education and health were three sectors that laid down neglected in priorities of previous governments, got sufficient nurturing of Finance Minister for 2012-13 with adequate sops and will lead to enhancement of their contribution to national GDP and subsequently to its growth and eventually amount to eradication of poverty, further felt the 80% of CEOs.
About 56% of CEOs, however, felt that the Finance Minister failed to enthuse the IT & ITES sector, which is considered the poster boy of the Indian economy. The sector seemed to have been disappointed with a host of issues such as uncertainty over implementation of direct tax code, goods & service tax, further increase in service tax and no reduction in Minimum Alternate Tax (MAT).
Over 78% of CEOs appreciated the large allocations made to health care, education, agriculture and rural sectors out of budgeted central plan allocations.
Representatives of cement and real estate industry criticised the FM for increasing excise duty, after the recent hike in the rail freight. This they felt, would raise cement prices and would hurt construction companies and would have adverse impact on infrastructure.
Also increase in the service tax rate from 10% to 12% will raise costs for developers who are already reeling under high input costs and increased burden may be passed on to end users. This depressed the Finance Minister's score margins.
Yet 75% of CEOs patted Finance Minister for presenting an investment-friendly budget which they feel will ensure inclusive growth by adequately attacking concerns of most vulnerable sections of society.
The CEOs that appreciated budget the most, comprised representatives from small scale, pharmaceuticals, commodities, agriculture, aviation and consumer durables industry, says ASSOCHAM Secretary General, Mr. D. S. Rawat who released the survey here today.
Majority of the CEOs have noted that higher central plan allocations of Rs.6,51,509 crores have been allocated for social sector particularly, health and education should not only take care of the weaker sections of society in integrating them with mainstream, but also ensure investments with inclusive growth, said Mr. Rawat.
Over 80% of CEOs have admired the FMs proposal for allowing ECB up to $1 billion to help meet immediate funding needs of aviation sector. FM also proposed full exemption from customs duty and countervailing duty to aircraft spares, tyres and testing equipment. This long standing demand of the sector regarding these exemptions would boost India's nascent maintenance, repair and overhaul (MRO)
Agriculture, education and health were three sectors that laid down neglected in priorities of previous governments, got sufficient nurturing of Finance Minister for 2012-13 with adequate sops and will lead to enhancement of their contribution to national GDP and subsequently to its growth and eventually amount to eradication of poverty, further felt the 80% of CEOs.
About 56% of CEOs, however, felt that the Finance Minister failed to enthuse the IT & ITES sector, which is considered the poster boy of the Indian economy. The sector seemed to have been disappointed with a host of issues such as uncertainty over implementation of direct tax code, goods & service tax, further increase in service tax and no reduction in Minimum Alternate Tax (MAT).
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