Union Budget a balanced one : ICCI

Kochi, Feb 28 (UNI) The Indian Chamber of Commerce&Industry today termed the Union Budget 2007-08 as a balanced one with thrust to agriculture with emphasis on rural development and relief to vital segments of the economy besides generating employment opportunities.

In a statement here, Chamber President K Retnan said the Budget, which was presented by Finance Minister P Chidambaram, has also taken care of needs of sectors like health, education and infrastructure.

The Chamber hoped that out of Rs.10,667 crore provided in the Budget, adequate funds would be available for the speedy completion of important projects in Kerala including Kochi-Mudurai by-pass (NH49).

The proposed scheme for the modernisation and technology upgradation of the coir industry covering five coir producing states including Kerala was good, but the budget allocation of Rs 22.50 crore needs to be suitably enhanced to have the desired result, the chamber added.

The Budget has also hinted that the Government would soon place similar financial mechanisms like tea fund for rejuvenating coffee, rubber, spices, cashew and coconut plantations, which would be of particular benefit to Kerala provided there was a realistic fund allocation, Mr Retnan added.

The Chamber noted that the raising of income tax limit in the case of personal taxation as well as service tax limit would provide relief to a good number of assessees.

Meanwhile, the Cochin Chamber of Commerce&Industry appreciated Indian economy's growth at 9.2 per cent this year.

The Chamber praised the proposal to use part of the forex reserves, which stand at 180 billion dollars, for infratructure finance.

It also lauded the Government's commitment to increase spending on the social infrastructure or services and to provide access to social services and the social safety net.

The Finance Minister has put an additional burden on tax payers investing in stock markets by raising divident distribution tax from 12.5 per cent to 15 per cent. While the excise cut on petrol and diesel was welcome the Chamber was sceptical on the benefits reaching the consumers in the light of the recent reduction in prices of petrol by Rs 2 a litre and diesel by rs one per litre.

For Kerala, the special focus on the growth of tourism and related infrastructure was a welcome initiative. Moreover, the special financial mechanisms for replantations, to be put in place for coffee, rubber, spices, cashew and coconut were most timely, the Chamber noted.

The special purpose tea fund to rejuvenate tea production and the announcement of a scheme for modernisation and technology upgradation of the coir industry would benefit the state.

UNI