Budget growth-oriented, but Telangana got raw deal

Red Hills: Stating that the union budget as growth oriented one, the Federation of Telangana Chambers of Commerce and Industries (FTCCI) president Ramakanth Inani said that Telangana State received a raw deal.

Ramakanth said that overall, the budget was growth oriented with focus on infrastructure, healthcare, road transport and agriculture and allied sectors but the Telangana State received raw deal as in previous budgets and no major projects were granted for the State.

He said that Finance Minister Nirmala Seetharaman presented the budget amidst lot of expectations and hope among various sections of the society. To give a boost to infrastructure creation, the allocation for capital expenditure is increased by 34.5 per cent to Rs 5.5 lakh crore compared to previous budget, mainly for roads and railways. This will help create a large number of employment opportunities and demand generation for goods and services.

The announcement of Atmanirbhar Swasth Bharat Yojana with Rs 2 lakh crore for health sector was a welcome measure as it would help strengthen health infrastructure at various levels – primary, secondary and tertiary health institutions. Measures like infusion of Rs 20,000 crore into public sector banks and setting up companies to manage bad debts for banks would surely provide scope for increase in credit disbursement helping MSME sector and consumers in general. "We expected an extension of the PLI scheme to few other sectors but there is no inclusion of additional sectors in the scheme. We welcome the government decision not to increase taxes or imposing any Covid related cess, which the Industry feared despite the revenue deficit, but it is disappointing to note that no additional exemptions are given to taxpayers in the times of crisis," said the FTCCI president.

Inani further said that extension of tax holiday for one more year for affordable housing projects and rental housing projects would boost real estate and construction sector giving a fillip to employment generation.

Tax holiday extension for one more year to start-up companies would incentivize the entrepreneurs. The proposal to provide relief on advance tax liability on dividend income is a relief to investors.

Inani observed that announcing a vehicle scrapping policy to tackle the problem of air pollution will help auto manufacturing and their ancillary units. Proposal to hike FDI limit to 74 per cent from 49 per cent will see more foreign players enter the sector and consequently competitiveness. The proposal to consolidate provisions of SEBI Act, Depositories Act, Securities Contracts Regulation Act and Government Securities Act into a single code will simplify the procedure and brings in more transparency," he added.