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Home arrow News arrow Govt. levys, taxes and budget arrow Focus of Budget 2010-11 should be to Bring Growth Back to 9%: Venu Sriniasan
Focus of Budget 2010-11 should be to Bring Growth Back to 9%: Venu Sriniasan Print E-mail
Written by Vivek   
Thursday, 07 January 2010
New Delhi: Mr Venu Srinivasan, President, CII, while presenting the key recommendations of CII to the Finance Minister, Mr Pranab Mukherjee, said that the focus of the budget 2010-11 should be to bring growth back to the 9% trajectory.

The CII President said that the stimulus package was just the right medicine that the economy needed and helped balance the growth imperative with that of keeping the fundamentals of the economy strong.

He highlighted to the Finance Minister that the industrial turnaround was at an early stage and investments had not picked up yet and therefore, needed special care to ensure that there is no “W” shaped growth phenomenon. However, looking at the pressure on the fisc in terms of the widening deficit the CII President mentioned at the meeting that the Finance Minister could consider an exit from the stimulus package provided it was gradual, calibrated and the end point of the exit coincided with the date of introduction of GST.

The CII President recommended the following measures for raising revenue:

 One, disinvestments upto Rs 40,000 crores could be targeted by the government. This would also ensure that the amount is spent on capital creation, which is the need of the hour.

 Second, a mechanism needs to be worked out by which a substantial Rs 50,000 crore from Rs 2 lakh crore, held up in various disputes and litigations for a long time, could be raised if a fourth of the disputes are resolved. A special tax court could be announced in the budget.

 Third, all services could be brought under the tax net, with a select list of negative items.

 Fourth and importantly, there is scope for increasing efficiency of funds spent on programmes.

He also highlighted the need for a smooth transition to GST, with the date for introduction being announced soon.

On the direct tax front the CII President suggested that no amendment with retrospective effect should be done. In addition, he highlighted the need for special ax incentives to enable industry to adhere to the challenges of climate change and emerging technology needs.

Highlighting the special requirements of SMEs, Mr Srinivasan requested that higher depreciation be allowed for the sector when investments are made into IT and other technologies.

 
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