The Hindu Business Line : Interim Budget lets down trade, public: TN chamber

THE Interim Budget presented by the Union Finance Minister, Mr Jaswant Singh, has belied the expectation of trade and industry and the public, the Tamil Nadu Chamber of Commerce and Industry has observed.

In a statement here, the Chamber President, Mr Rethinavelu, said that despite the euphoria generated on account of the much touted `feel good factor' on the GDP growth projections, the fact remained that the competitiveness of the indigenous industries is not strong enough to face global competition.

Stating that no worthwhile proposals have been announced in the Budget to reinforce the industrial sector, especially to resuscitate the small-scale sector, Mr Rethinavelu said that the present Rs 1-crore Central Excise exemption or concessional rate for those units availing themselves of Cenvat facilities does not provide any monetary benefit. There is every justification for enhancing the present Central Excise exemption limit for SSI units to at least Rs 3 crore and increase the clearance limit from Rs 3 crore to Rs 6 crore.

The indigenous edible oil and vanaspati industry is distressed by the non-removal of excise duty on branded and refined edible oil and vanaspati as it is akin to levying penalty for establishing a brand name and supplying hygienic and quality edible oil to the consumers.

Yet another sore pointt has been the non-announcement of a basic exemption limit for service tax. There is also no mention about the implementation of infrastructural projects such as Sethusamuthram Canal Project and the project for inter-linking of major rivers in the country, he added.

Observing that there are certain redeeming and welcoming features in the budget, Mr Rethinavelu noted them as the thrust given for Second Green Revolution, special packages for rejuvenation of sugar and tea industries and the announcement that sustained measures taken towards fiscal consolidation has resulted in a decrease in expenditure in revised budget estimates to the tune of Rs 11,143 crore compared to the earlier budget estimates.

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