KCCI calls it an eco-agri budget

Mangalore, March 1: The Union Budget has evoked mixed reaction from industry representatives here.

G.G. Mohandas Prabhu, president, Kanara Chamber of Commerce and Industry (KCCI), said that the Union Budget was an “eco-agri” budget. Its emphasis on agriculture and focus on cold chains was a far-sighted thought made by Union Finance Minister Pranab Mukherjee. The concessions to electric vehicles (EVs) would limit country's dependence on fossil fuels.

The Central Excise rates had been maintained, which was welcome. Industry circles expected an increase. However, nothing had been mentioned about tax, he said. About 130 items had been brought under the Central Excise (of a nominal 1 per cent). Implementation of direct taxes from April 2012 and the tabling in Parliament of the Goods and Services Tax (GST) Bill was welcome. The budget could have been more liberal on Income Tax, he said. The fiscal deficit of 4.6 per cent of the GDP indicated a robust economy.

B. Madhava, secretary, Dakshina Kannada district unit of the CPI(M), welcomed the doubling of the “miserably-low” salary of “anganwadi” workers. Connecting the wages of those working within the National Rural Employment Guarantee Scheme (NREGA) to the consumer price index was welcome, he said.

The Income Tax exemption for the middle classes and the proposal to reduce eligibility age for pension from 65 to 60 were good initiatives, he said.

But the budget was insensitive to the problems of the common man, according to him.

The Finance Minister's speech expressed concern over price rise but said nothing about controlling it. Strengthening of PDS was assured by political parties (that 35 kg of rice at the rate of Rs. 2 per kg would be given to each nuclear family) but never implemented, he said.

B.A. Nazeer, president, Kanara Small Industries' Association (KSIA), Baikampady, welcomed the implementation of Direct Tax Code (DTC) from April 1, 2012, and the introduction of Goods and Services Tax (GST) Constitution Amendment Bill in the present session of Parliament.

The proposal to enhance IT exemption limit by Rs. 20,000 was marginal compared to the high inflation rate. Excise duty could have been reduced to 8 per cent to stimulate the manufacturing sector particularly SSIs.

The SSIs' demand of increasing Central Excise limit to Rs. 3 crore had been ignored. No encouragement to SSI sector had been proposed, he said.