GUWAHATI: The Federation of Industry and Commerce of North Eastern Region (FINER) lauds the Union Budget 2019-20 stating that the budget proposals are based on long term goals and primarily aimed at achieving US$ 5 trillion GDP in the next five-year period.
“ Focus is on Infrastructure , connectivity in terms of Railways, State Roadways and Waterways will not only boost economic activity but will give a much needed boost to generating employment in the country .The Govt announcement that it will invest Rs100 lac cr in next five years in infrastructure will enhance investor sentiment and clearly promises large employment generation .Emphasis on Act East Policy will naturally augment infra and connectivity of the North east region with the ASEAN countries,” a FINER Communique informed.
Make in India, with particular emphasis on MSME sectors and Startups, defence manufacturing, electronics and blue economy are some of the hall marks of the vision for the decade as enumerated in the budget.
Having made considerable progress on ‘ease of doing business’, focus is now being given on ‘ease of living for the citizens of the country which is a paradigm shift in the approach of the government. Considering the enormous human resources in the country, a new education policy which is being planned, will not only continue to produce world class talents but also work towards making India a preferred destination for education to attract foreign students as well.
Govt intends to facilitate easy finances to MSME sector by expeditious sanctioning of loans which will be a major step. The Banking sector is being helped with a Rs 70 th crore reacapitalisation fund, which shall directly impact availability of funds to provide credit facility to industry.
Simplification of labour Laws by keeping only 4 labour codes and replacing plethora of existing laws will further contribute enormously to “ease of doing business “in the country. This is a step that will help both the workers as well as investors. Foreign Direct Investments are likely to increase in view of the steps to increase caps and restrictions in certain sectors.
Income tax deduction on interest on affordable housing being increased from 2 lacs to 3.5 lacs per annum will have a major social impact on the middle class.
Government intends to generate Rs 1.05 lacs cr from disinvestments of selected PSUs this year which will be utilized in infrastructure and socially targeted schemes.
However, FINER feels that imposition of Excise Duty and cess on petrol and diesel could have a cascading impact on travel and transport cost which possibly need to be reviewed.
Another encouraging feature of the budget is introduction of a Dispute Resolution cum Amnesty Scheme for resolution and settlement of legacy cases of Central Excise and Service Tax. This is a welcome step for clearing up huge pendency of appeals etc., and officials and the tax payers may concentrate on future business and revenues. Overall the budget is a welcome document and is expected to rejuvenate the economy, generate employment and attract investments.
