Budget evokes mixed response among Industries

Chennai, Feb 28 (UNI) The Union Budget presented by Finance Minister P Chidambaram today evoked mixed response in Tamil Nadu, with several industry bodies terming it as ''disappointing'' and some others terming it as a ''good one''.

While industry bodies like the Southern India Chamber of Commerce and Industry (SICCI), Confederation of Indian Industry (CII), Federation of Indian Chambers of Commerce and Industry (FICCI) and Murugappa group, expressed disappointment, the Federation of Indian Export Organisation (FIEO), Manufacturers' Association for Information Technology (MAIT), TVS electronics and Asia motorworks termed it as a 'good budget'.

CII President R Seshasayee said the budget fell short of expectations on Corporate Taxes and described focus on education and agriculture as most appropriate.

''Sound economic management at the macro level is a key feature of the Union Budget'', he said, complimenting the Finance Minister for adherence to fiscal targets.

''Mr Chidambaram has presented a great progress report for the economy. The macro-economic management has resulted in strong positive position in the fiscal space, restricting revenue deficit to 1.5 per cent and fiscal deficit to 3.3 per cent for the year 2007-08'', he added.

SICCI President S Ramanathan said the Budget was overall 'disappointing' and 'not growth-oriented'.

He said the main area of disappointment was the increase in tax on dividend given by mutual funds.

On the Health sector, he said "while allocating more money to eradicate polio, Mr Chidambaram should have also sanctioned more money to control AIDS in the country." MORE UNI