FNB News - Budget document of fiscal prudence; Would lead to economic sovereignty

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BUDGET

Budget document of fiscal prudence; Would lead to economic sovereignty

Monday, 14 July, 2014, 08 : 00 AM [IST]

Akshay Kalbag, Mumbai

The 2014-15 Budget, presented by financial minister Arun Jaitley, is a document of fiscal prudence, which speaks of the galvanisation of each sector of the economy to its best in the larger interest of the country, according to the Confederation of All India Traders (CAIT), the apex body of the trading community of India.

After a long time, the Budget is not a corporate document, but has made efforts to utilise optimum capacity of all the sectors of the economy. It would have been more better if the finance minister would have also announced a National Trade Policy for Retail Trade of India.

“However, the efforts spelled out in the Budget to liberate the trade and industry from the clutches of Inspector Raj, and simplification and rationalisation of the tax structure is a welcome step, and the Budget would lead to economic sovereignty,” added CAIT.

CAIT national president B C.Bhartia and national secretary general Praveen Khandelwal, while reacting on the Budget, said that the proposal to examine financial architecture for the micro-, small and medium enterprises (MSME) sector and for this purpose, Jaitley declared that the constitution of a committee comprising the finance ministry, MSME ministry and RBI, was a welcome step.

CAIT was demanding financial inclusion of this sector since a long time. They also lauded the declaration to form a high-level committee to interact with trade and industry on a regular basis for clarity in tax laws would be a major step in the direction of simplification and rationalisation of tax structure in the country.

“The announcement of early introduction of goods and service tax (GST) is also a welcome step, but the stakeholders should be consulted effectively, while drawing a roadmap of GST in India,” Bhartia and Khandelwal said.

Both Bhartia and Khandelwal said that serious declarations have been made in the Budget for skill development, which would provide much employment opportunities in the country.

The provision of E visa would boost business tourism in India. The declaration of setting up the Export Promotion Mission to bring all the stakeholders under one umbrella would further boost domestic exports and both trade and industry would be benefited.

The creation of a fund with Rs 10,000 crore for venture capital in MSME would strengthen the small- and medium enterprises (SME) fabric in the country.