Mr. J.R. Bangera, President, FKCCI, broadly welcomes the Union Budget for the year 2012-13. He appreciated the emphasis given to Rural Development, Agriculture and Irrigation. FKCCI welcomes Central Government’s initiative in bringing Food Security Bill and Nutrition Augmentation Programme which provides for nutrition to the down trodden.
FKCCI has welcomes the special importance given to Infrastructure and Industry, Coal and Power, Civil Aviation wherein investments will be through PPP mode and allowing ECB for a limited period, which would create employment opportunity for 10 crores. FKCCI welcomes the infusion of capital of Rs.18,000 crores to Public Sector Banks and also revival of RRBs. Capital Market has been given a boost by reducing STT by 20%. FDI investment in Civil Aviation with 49% is appreciable. Reforms brought in double taxation avoidance agreements with Foreign Treaties, to track more disclosures of black money held by the citizens of this country, is a welcoming move. Enhancement of exemption of investments in infrastructure projects, in house R&D, Scientific Research Institutions will drive the investments for the economic growth. Mr.Bangera appreciated the emphasis given to skill development and employment which would add the much needed skilled man power for the industry. In the context of industry, Mr.Bangera welcomed the special mention of assistance to the MSME sector in the Budget.
FKCCI is glad that a time plan has been set for the introduction of GST by August 2012 and bringing negative list in Service Tax by removing cumbersome and ambiguity in the provisions of the Act and also simplifying the procedure for filing Central Excise and Service Tax in one page. Further, the procedure for claiming refund of Central Excise, Service Tax, Customs by the exporters have been simplified.
FKCCI is concerned that the rollback of Central Excise and Service Tax Tariff allowed as Stimulus Package during economic recession may add to inflationary measure. FKCCI is also concerned with the high fiscal deficit of 5.1% in 2012-13.
Summing up FKCCI, feels that the Budget has been a fairly balanced one in the given economic situation.
J.R. BANGERA
