Chandigarh,Sanjay Pahwa: Terming the Union Budget 2011-2012 to be ‘growth-oriented’, R K Saboo, Past President, PHD Chamber, complemented the Finance Minister for presenting a very balanced budget. He said that the budget was on the expected lines, showing continuation of reforms trajectory.
The FM has hinted at taking progressive policy actions in the key areas of delivery of subsidies, allowing FII, boosting infrastructure development during the course of the year. The substantial increase introduced in social sector has been given a substantial boost. Though he cautioned, “…to what extent these shall be implemented, is to be seen”. The healthiest sign, he said, was the reduction of fiscal deficit from 5.5 per cent to 5.1 per cent.
Vikram Sahgal, Chairman, Chandigarh Committee, PHD Chamber said that the focus on the removal of production and distribution bottlenecks for perishable items — fruits and vegetables, milk, meat, poultry and fish and an increase in infrastructure allocation by 23.3% may help reduce output gaps and stimulating infrastructure development, he added.
He said that the FM has shown the intention to address issues of inflation, growth and black money, “it is to be seen how the government does so”.
Sh Satish Bagrodia, Past President, PHD Chamber said that the FM had done quite a balancing act with the kind of existing constraints of inflation on one side and the expectations of masses on the other. “It was expected that his budget would lay stress on three key areas: manufacturing, infrastructure and agriculture. Rightly so, the FM did lot for infrastructure and agriculture, but failed to announce anything for the manufacturing sector.
Bagrodia said that the FM’s effort to plug leakages in the subsidies is a welcome step.
Dalip Sharma, Regional Director, PHD Chamber said, with credible measures for improving investment climate, strengthening infrastructure and fiscal consolidation, right allocations have been made in social sector which would ultimately put India on growth trajectory.
He said the budget aimed to reduce the fiscal deficit from the present 5.1 percent to 4.6 per cent and to 3.5 per cent in the next three years and increase the GDP growth rate from the present 8.75 per cent to 9.45 and ten per cent.
The increase in FII capital inflow limits as a measure to boost infrastructure funds is a positive move, however, not enough steps have been taken to undo the current decline in FDI. The value of FDI from Apr-Nov FY11 has reduced by 27.2% from the corresponding period in the last fiscal. Similarly, the recent decrease in growth in manufacturing sector to 5.6% in 3Q FY11 should have been given more emphasis, he said.
Amarjit Goyal, Senior Member, Managing Committee, PHD Chamber said the CST has not been reduced as expected by industry all over. Sudha Sharma, IRS, Retd., said that “the delivery system needs to be put in place”.
CAPTION: Sh R K Saboo, Past President, PHD Chamber, commenting on the Union Budget 2011-2012 during the Union Budget meet held by PHD Chamber at PHD House, Chandigarh. Also seen in the picture are: Ms Sudha Sharma, IRS, Chief Commissioner, Income Tax (Retd.), Sh Satish Bagrodia, Past President, Sh Amarjit Goyal, Member, Managing Committee, PHD Chamber, Sh R S Sachdeva, Co-Chairman, and Sh Dalip Sharma, Regional Director, PHD Chamber.