New Delhi, Feb 29 : Finance Minister P Chidambaran has presented a comprehensive, balanced and growth-oriented budget, said Sunil Mittal, President of Confederation of Indian Industries.
The Finance Minister has managed to address the triple challenge of growth inclusiveness and sustainability very astutely, Mittal said. The budget proposals would go along way in building people and building India, he added.
The beneficiaries of the budget vary from farmers to industry to the average salary earner. And all this without making the budget fiscally irresponsible, said the CII release.
However, CII hoped that the expected proposals of the Sixth Pay Commission have been kept in mind while balancing the budget, since any provision for that did not seem apparent from the Finance Minister's speech.
The cornerstone of the budget has to be the obvious fillip that it would provide to consumption in the country and thereby pump up a demand led growth cycle.
This would supplement the neutral stance that the RBI has just indicated in the last Monetary Policy Review, said the CII release. This is very important if the economy has to maintain its current growth trajectory and move to a double digit one, Mittal said.
Stepping up budgetary allocation by 20 per cent and focus on improved access to healthcare along with setting up of SC/ST/minorities Development Finance Corporation are measures that would help build people of India, Mittal said.
The announcement of the setting up a non profit organisation for skills and a start up contribution of 1000 Cr from the government will go a long way in developing the skill sets in the country.
In addition, CII strongly welcomes announcement by the Finance Minister for setting aside another Rs 750 crores for upgrading another 300 ITIs.
Welcoming the industry stimulus package, Mittal said that the reduction of Cenvat rate from 16 per cent to 14 per cent was suggested by CII, and was therefore delighted that the Finance Minister has heard the plea.