The Hindu : Karnataka News : The budget has something for everyone, says CII

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Friday, Jul 18, 2008
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Karnataka

Karnataka

The budget has something for everyone, says CII

Special Correspondent

Budget has comprehensive vision for State,
says FICCI
Rs. 1,800 crore for Bangalore’s infrastructure
is inadequate

Bangalore: The two major bodies representing industry, the Federation of Indian Chambers of Commerce and Industry (FICCI) and the Confederation of Indian Industry (CII) have welcomed the Karnataka Budget for 2008-09.

Rajeev Chandrasekhar, MP and president, FICCI, said the budget “has a comprehensive vision for the State” and for “transforming the State.” He pointed out the budget’s emphasis on the primary and secondary sectors was “long overdue.”

S. Viswanathan, Chairman CII-Karnataka, said: “The budget has something for everyone — agriculture, education, infrastructure, industry, employment or the differently-abled.” He welcomed the announcement of a new industrial policy and the formulation of a new textile policy. He hoped that the formation of a special industrial zone would be actualised soon.

Mr. Viswanathan also welcomed the procedural changes in filing Value Added Tax (VAT) returns. However, he pointed out that the outlay of Rs. 1,800 crore for Bangalore’s infrastructure was inadequate. The CII also argued for the speedy implementation of the Nanjundappa Committee report so that there is balanced regional development in the State. The proposal to increase power generation capacity by 1,000 MW is inadequate, he said. The tourism sector has been ignored, he added.

Federation of Karnataka Chambers of Commerce and Industry (FKCCI) president D. Muralidhar termed the budget as an “inclusive” exercise. He welcomed the higher growth rate target of 10 per cent, pointing out that unless growth was stepped up it would not be possible for the state to meet its targets for the Eleventh Plan. He also welcomed the textile policy to promote the garment manufacturing sector, which has great employment potential. The concessions to IT and BT units set up in Zone 1 and Zone 2 taluks are a welcome move, he added.

Arvind N. Burji, president, Karnataka Small Scale Industries Association (KASSIA), said the budget had “reached its expectations.” In particular, the KASSIA welcomed the emphasis on agriculture, the move to provide grants to privately-run high schools and aid to 37 Industrial Training Institutes in the State. It also welcomed the reduction in penalty on delayed filings of VAT returns from 10 per cent to 5 per cent. However, it urged the Chief Minister to exempt small-scale units from having to deposit 50 per cent of the disputed tax while filing an appeal. Mr. Burji said the failure to apply a uniform VAT on all industrial inputs was a negative aspect of the budget.

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