Mixed reaction on budget in AP CII Chapter

Hyderabad, Feb 28 (UNI) The Confederation of Indian Industry (CII) Andhra Pradesh Chapter today expressed 'happiness' for allocating more funds to education and Agriculture in the Union Budget 2007-08, presented by unioin Finance minister P Chaidamabaram, and took exception for inadequate allocations to infrastructre sectors.

Speaking to newsmen here, CII AP chapter President G Vivekanand pointed out that the Finance minister has reduced the CST to four to three per cent even after the CII urged him to reduce to two per cent. The majority of CII recommendations were not considered in the budget.

Terming the 2007-08 budget as 'lukewarm budget', CII AP chapter executive Y Harish Chandra Prasad said the minister did not mention the regulator system of gas prices which is to be main component for gas power generation in the state.

'There were no sops for public transport systems in urban areas and negeleted the marchant power projects', he added.

Stating that the budget was a 'politically compromised budget', CII past President NJ Rao said the minister has not clarified on FDI's in rail market in the country and avoided disinvestment in PSUs.

CII AP Chapter former Chairman Manohar said the budget was 'disappointing' which nelgelcted the tourism sector with the allocations of Rs 520 crore only.

He urged the Finance minister announce 'tax holiday' to all upcoming 2,3 and four star hotels in the coutry.

UNI