Budget continues to spur growth, Mr Chandrasekhar

29 Feb '08

3 min read

FICCI President, Mr. Rajeev Chandrasekhar said that this is a balanced budget that has taken care of both the growth of the economy and the political compulsions of out time.

He added, “I am convinced that the budget will continue to spur growth and FICCI hopes that the Prime Minister's statement at FICCI's 80th AGM that 9% growth is achievable holds true.”

FICCI had recommended that for the common men and women of the country the income tax exemption limit be enhanced from Rs. 1.1 lakh to Rs. 1.5 lakh.

The Finance Minister has announced this and this will now give more purchasing power into the hands of people and boost consumption.

Industry had also requested that the government take measures to address the cascading affect of the Dividend Distribution Tax. In the budget, the Finance Minister has taken up this matter and the issue has been partially addressed.

FICCI hopes that as we go ahead further modifications will be made to completely waive the cascading affect of DDT on multi-layered corporates.

The Finance Minster's major step in promoting hospitals and the healthcare sector in tier 2 and tier 3 cities of the country is also a very positive move.

FICCI had urged the government to give a boost to the healthcare sector and now hopes that a further push will be given by granting 'infrastructure status' to the healthcare sector.

One of the major problems being faced by industry is the severe skill shortage across sectors and at all levels. In this context FICCI feels that the Finance Ministers announcement of setting up a non-profit corporation for promoting skill development with an outlay of Rs 15, 000 crores is a fresh, new idea whose time had come.

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