Budget throws hints of socialism: Munjee

Mumbai, Feb 28 (UNI) The trade and industry in the financial capital of the country, by and large, felt that the Union Budget 2007-08 is a mixed bag, with an attempt by ''the Government not to disrupt the growth momentum,'' a dominant section also felt it also portrayed ''hints of socialism.'' Interacting at the CII-CNBC18 meet, after the presentation of the Budget by Finance Minister P Chidambaram, Nasser Munjee, Chairman of DCB Bank said ''The Budget has thrown hints of socialism with the Government interefering with the market (cement).'' Even though the Budget seeks to present a picture of excellent macro-management, it is disappointing on the infrastructure front and nothing on the PPP (public-private partnership) initiative, Mr Munjee said adding ''We need to leverage public money with the private entrepreneurship on which nothing concrete has emerged.'' Introduction of service tax on rentals Echoing on similar lines, Ashok Wadhwa, CEO of Ambit Finance and president of the Bombay Chamber of Commerce and Industry (BCCI) said ''at a time when the property prices are spiralling, the idea of charging service tax on rentals of commercial property will compound the problem.'' D R Rathi, CEO of Birla Cement, said the increase in excise duty on cement though seems an effort by the government to control inflation, the Government does not seem concerned over the inflation on raw materials.

''It is not going to serve the intended purpose of controlling inflation. What about inflation on the very inputs?'' The Budget perception among industry captains is that the priority seems to be inflation fighting to garner political support, support infrastructure spending and fiscal consolidation in that order.'' Fresh from defeat in two State elections that reflected voters anger about rising prices, the ruling Congress party slashed duties on a host of items in its annual budget to control inflation, now just below its highest in two years. The government already halted the launch of new futures contracts for wheat and rice on the commodity exchanges on Wednesday.

On the revenue front, the Budget proposals keep corporate tax rates broadly unchanged, raised the personal income tax exemption threshold and added one percent on all taxes to fund education.

UNI