The Hindu : `Budget contains innovative schemes'

Online edition of India's National Newspaper
Friday, Feb 13, 2004

Tamil Nadu

Tamil Nadu

`Budget contains innovative schemes'

By Our Special Correspondent

CHENNAI, FEB. 12. Welcoming the Tamil Nadu Budget for 2004-2005 in general, various organisations said the Government had not made any announcement regarding reliefs sought by industry and trade.

New schemes have not been announced to solve the crisis facing cotton textile mills, powerlooms and handlooms. As the price of cement had gone up, the construction industry was affected. The working class will ignore the budget, which was being passed without discussion, the general secretary, All-India Trade Union Congress, S.S. Thyagarajan, said.

The Confederation of Indian Industry welcomed the initiatives regarding business deregulation, establishment of a Technology Development Centre and a Knowledge Industry Township. The new scheme for the hosiery industry, wherein nine per cent of tax collected will be refunded on inter-State sale of hosiery products was a welcome step. The confederation urged the Government to consider extending the scheme to other products manufactured in the State.

The National Confederation of Small Industry said small and tiny enterprises expected a larger outlay from out of the enhanced Plan outlay of Rs. 8,001 crores.

The Madras Chamber of Commerce and Industry described it as a "people-friendly plan that seeks to leverage on its advantages for the economic growth of Tamil Nadu." The All-India Tax Payers Association said it was "friendly and welfare-oriented." The association welcomed the proposals to waive land tax and electricity and abolish agricultural income tax, lay quality roads and encourage the Information Technology industry.

The budget contained a number of innovative schemes for accelerated economic development, the Southern India Chamber of Commerce and Industry said. The single window system and simplification of forms would greatly help the business community.

The Hindustan Chamber of Commerce said the budget was `pragmatic.' The measures to tackle drought was a step in the right direction.

"The budget would be welcomed by all sections of society. This was the best budget that could be expected under the prevailing circumstances," the Tamil Chamber of Commerce said.

`Expectations belied'

The Tamil Nadu Chamber of Commerce and Industry said expectations that the budget would contain several essential tax concessions had been belied. The Government had turned a deaf ear to the plea for removing resale tax and additional sales tax.

The Planters Association of Tamil Nadu termed the budget as "people-friendly and development-oriented." The abolition of agricultural income tax on plantations came at a time when planters were worried about their future.

The Tamil Nadu Retired Government Employees Association and Retired Officials Association said the budget was `disappointing' as there was no announcement with regard to the unpaid pension benefits.

The Tamilnadu Vyabarigal Sanga Peravai and the Tamil Nadu Vanigar Sangankalin Peravai have said the budget was disappointing. The Government did not say anything regarding reliefs sought by the trade.

Plastic industry disappointed

Describing it as innovative in many aspects, the Chennai Plastics Manufacturers and Merchants Association said the industry was disappointed as the `set-off' facility against entry tax imposed during the last budget on plastic raw materials such as low-density polyethylene and polypropylene had not been extended to manufacturers.

The Federation of Associations of Small Industries of India said assurances of uninterrupted and quality power supply to industry and to small scale industries to get ISO certification were welcome.

Criticising the budget, the Tamil Nadu Vivasayigal Sangam said the Government had not announced any scheme for drought relief or regarding drought-hit areas.

After announcing various schemes and that the budget was tax-free, the Government should have stated how it would fulfil the plans.

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