Budget: Prescriptions and wishlists
Last updated on: February 28, 2011 09:21 IST
Image: Pranab Mukherjee.
Photographs: Reuters
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. . . .
Budget: Prescriptions and wishlists
Image: The Parliament.
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. . . .
Budget: Prescriptions and wishlists
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. . . .
Budget: Prescriptions and wishlists
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 . . .
Budget: Prescriptions and wishlists
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
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. . . .
Budget: Prescriptions and wishlists
Image: The India Gate.
Photographs: Reuters
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. . . .
Budget: Prescriptions and wishlists
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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