Interim budget a major disappointment: PHD Chambers
The PHD Chambers of Commerce and Industry described the interim budget presented by Pranab Mukherjee as a “major disappointment for the industry”. The industry was expecting measures from the government to rejuvenate the economy to overcome the slump in demand slump arising out of the current global meltdown. While the PHD Chamber appreciated that tax measures should be left to the presentation of the full Budget, it stated that the 4 percent concession in excise announced as part of first stimulus package to stimulate demand, should have been continued beyond March 2009.
“Trade and industry was looking forward to a bold stimulus package which not only takes a proactive stance to keep the growth momentum going but also sends out a strong message that the Indian economy has the resilience to tackle the difficulties arising out of global turmoil”, said Mr. Satish Bagrodia, President, PHD Chamber.
“Industry was expecting targeted sector specific tax incentives to kick-start segments such as housing, steel, cement, consumer durables, and passenger cars etc which have high output and employment intensities. The fiscal deficit is also too high and may result in credit squeeze for trade and industry”, added Mr. Bagrodia.
Nevertheless, the continuation of 2 per cent interest subvention on labour intensive exports and SMEs till September 2009 is welcome even though industry had recommended a 5% subvention to overcome the downbeat times. The increased social sector spending on Bharat Nirman and other flagship programmes on rural physical and social infrastructure are a positive for the economy for spurring demand. It is hoped that the schemes favour the targeted beneficiaries.
PHD Chamber organised an “Interim Budget Viewing Session” wherein senior members of Company Secretaries Association, Chartered Accountants Association, Bar Association, IT & Sales Tax Bar Association, ICWAI, Haryana Chamber of Commerce and Industry, Fasteners Association, Chandigarh, Mohali Industries Association, apart from academia, economists, bankers and industrialists from Chandigarh, Mohali, Panchkula and Derabassi participated.