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Budget: Prescriptions and wishlists

Last updated on: February 28, 2011 09:21 IST

Budget: Prescriptions and wishlists

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BS Reporter in New Delhi

Prime Minister's Economic Advisory Council

  • Exit from stimulus.
  • 9.0 per cent growth in 2011-12.
  • Inflation at 7.0 per cent by March 2011.
  • Contain inflation by focusing both on monetary and fiscal policies and supply side management.
  • Pace of infrastructure creation has to be stepped up with renewed focus on the power sector.
  • Continue efforts to contain current account deficit at 2-2.5 per cent of gross domestic product and in parallel encourage flow of external investments into the country.
  • Greater attention to agriculture including on seed development, management of water and soil fertility and improving delivery system
  • Urgency in the implementation of goods and services tax.
  • Budgeted level of fiscal deficit and revenue deficit still beyond comfort zone.

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  • Image: Pranab Mukherjee.
    Photographs: Reuters
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    Budget: Prescriptions and wishlists

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    Economic Survey 2010-11

  • Better convergence of schemes to avoid duplication and leakage.
  • Private sector participation in social sectors.
  • Huge capacity addition in infrastructure in a time bound manner.
  • Urgent need to streamline land acquisition and environmental clearances for infrastructure projects.
  • Bringing parity between the compensation package admissible under the Land Acquisition Act, 1984, and that applicable to land acquisition under the National Highways Act, 1956.
  • Investment in building managerial and technical capabilities of executing agencies at par with the private sector.

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  • Image: The Parliament.

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    Budget: Prescriptions and wishlists

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  • Second Green Revolution with technological break-through in agricultural sector.
  • Prioritisation of targeted development of rainfed area and effective marketing links be ensured for better returns to the farmers.
  • Further improvements in the Mahatma Gandhi National Rural Employment Guarantee scheme.
  • Efficient taxation of goods and services by a new GST.
  • Need to explore avenues for increasing investment in infrastructure.

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    Budget: Prescriptions and wishlists

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  • Need for deepening of the corporate bond market.
  • FDI in retail.
  • Inflation continues to be a cause for concern.
  • Global economy on the upturn, to support growth momentum.
  • Trade deficit set to narrow.
  • Focus on Aam aadmi and higher funds for flagship programmes, implementation key to realizing the desired outcomes

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    Budget: Prescriptions and wishlists

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    Industry Chambers
    Confederation of Indian Industry

  • Encourage private sector participation through various tax measures, including 150% tax exemption on expense incurred on new technology and inputs.
  • Do away with the levy of MAT on infrastructure companies as it has diluted the incentives provided under section 80-IA to the sector.
  • Reintroduce of Section 10 (23G) of the Income Tax Act, which provided tax exemption of interest and Long Term Capital Gains in the hands of infrastructure capital companies.
  • Increase deprecation rates on plant & machinery from 15 percent to 25 percent and extending R&D incentives available u/s 35 (2AB) to all sectors.
  • FDI in multi-brand retail should be opened up, higher FDI should be allowed in the defense sector.
  • Early passage of Insurance Bill to raise the FDI limit from 26% to 49%.

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    Budget: Prescriptions and wishlists

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  • Develop a deep and liquid corporate bond market.
  • Continue with the existing peak rate of customs duty (10%). Status quo on the general rate of 10% excise duty and 
        10% services tax, since these are at par with the proposed Central GST rate of 10%.
  • Reduce CST from 2% to NIL, since no credit is available on this tax.
  • Reduction in the corporate tax rate from 30% to 25% together with abolition of surcharge and cess.

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    Budget: Prescriptions and wishlists

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    Federation of Indian Chambers of Commerce and Industry

  • No rollback of stimulus.
  • Abolish surcharge and education cess.
  • Reduce Corporate tax rate to some extent.
  • Remove cascading impact of Dividend Distribution Tax.
  • Rationalise the MAT as a specified percentage - 50 per cent - of basic corporate tax rate.

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  • Image: The India Gate.
    Photographs: Reuters
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    Budget: Prescriptions and wishlists

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  • Extend the period of profit-linked incentives provided for infrastructure and crucial sectors (including for developing industrial parks and for power generation), for some more time.
  • Make the investment-linked incentive really meaningful, by allowing the losses of specified business of the assessee to be set-off / carry-forward from his other profit-making businesses, instead of restricting it to only from his specified businesses.
  • Restore withholding tax exemption on interest payable on foreign commercial borrowings, as also the tax exemption of interest income of an infrastructure capital fund / an infrastructure capital company.
  • Peak customs duty rate of 10% needs to be retained for sometime more.
  • CST rate be reduced from 2% to 1% with effect from 1st April, 2011.
  • Extend tax holiday benefit for EoUs and undertakings involved in FTZs for another 2-3 years.


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