The Institute of Company Secretaries of India (ICSI) welcomes the development oriented budget of the new Government boosting the economy through renewed emphasis on infrastructure, agriculture, rural economy and exports for ‘inclusive growth’. The government has set for itself a target of
Increased allocation of funds to infrastructure sectors such as energy, highways, railways, urban infrastructure etc. will stimulate the over all economic growth and will insulate the Indian economy from global recession. The setting up of National Gas Grid is right step to ensure availability of much needed energy for industrial growth. The increased allocation of funds to highway and railway projects will help the timely completion of the projects which will have chain benefits to the economy.
The abolition of much awaited Fringe Benefit Tax (FBT) will augment the financial resources of the corporate entities and will reduce the burden in complying with the provisions thereof.
The initiatives taken for export sector like setting up of Rs.4000 crore Fund for micro, small and medium enterprises, increased allocation for Market Development Assistant Scheme and extension of tax holiday under Sec. 10A and 10B of the Income Tax Act by one year will go long way to lift Indian exports.
The emphasis on agriculture and rural development will certainly boost the rural economy which in turn will enhance consumption capacity of agrarian sector giving further impetus to economic growth.
Government has shown its commitment towards tax reforms by assuring that Central Government will play a catalytic role to facilitate the introduction of Goods and Service Tax by 1st April, 2010.
Over all the budget is aimed at ‘demand led growth’ and has emphasized on ‘inclusive growth’ which is a welcome approach and the Hon’ble Finance Minister should be congratulated for the same.