Industry hail emphasis on infra,Capex; mixed reactions from trade, tourism, labour unions

Aurangabad, Feb 1: Finance Minister (FM) Nirmala Sitharaman presented the union budget 2021-22 on Monday. The budget this year is significant as it was rolled out amid the adverse situation caused by the year-long Corona crisis. It was a tightrope walk for the FM and the team planning the budget. While the industries have broadly welcomed her endeavour, there have been mixed reactions from others. Lokmat Times spoke to people from different walks of life to know that they think about the budget.

Only empty promises delivered

Imtiaz Jaleel

MP, Aurangabad

There were huge expectations from the union Government but it delivered only promises. There was no relief to farmers and individuals or no big relief to small and medium scale industries which suffered huge loss due to the Corona pandemic. The budget decisions aim at appeasing people of states where elections are due like Tamil Nadu, Assam and West Bengal. The indifferent attitude towards Maharashtra was seen as the BJP is out of power. The benefit to private players of their choice continues.

Nothing in budget for common man

Dr Bhalchandra Kango

Senior AITUC and Communist Party of India leader

After the Corona crisis last year, it was expected that the government will think of out of the box ideas. However,the budget presented today has nothing for the common man, farmers and labourers. We condemn this completely pro-privatisation and pro-corporate budget. It is beyond our understanding that an amount of Rs 20,000 crore is to be spent on a new bank and the existing IDBI Bank is to be scrapped. Moreover, 74 per cent disinvestment will be done in the insurance sector which will be dangerous for institutions like LIC.

Studious and well-planned exercise

Mukund Kulkarni, Chairman, Confederation of Indian Industries (CII): Against the backdrop of the Corona Crisis, this is a studious and well-planned budget. The impetus has been given to the expenditure on infrastructure which will lead to development of roads and railways. Even the gas pipelines have been planned. The customs duty on the MSME-Agro industries has been increased which makes the local industries more competent. However, there is not much for the hospitality, education and entertainment sectors. The industries will be benefitted in the long run.

City auto component sector will gain

Kamlesh Dhoot

President, Chamber of Marathwada Industries and Agriculture

In the past two-three months, the government has tried to bring economic reforms despite Corona situation. Hence, not much was expected from the budget. Still, this budget can be said to be the one with long-germ vision. The expenditure on the infrastructure is the highlight. The auto-component sector in Aurangabad will definitely benefit through the policy for scrapping old vehicles. The MSME sector has been taken care of by increasing the customs duty. Something should have done for exports and tourism sector.

Extensive capital expenditure mooted

Abhay Hanchnal

President, Marathwada Association of Small Scale Industries and Agriculture: The budget has provision for extensive capital expenditure, which will be beneficial for the industries.After the Corona crisis, the industries gained momentum from November onwards. The expenditure proposed in the budget for the infrastructure will boost the industries. Moreover, the budget appears to be transparent as the FM has clearly indicated at the fiscal deficit of 9.5 percent. However, there needs to be more clarification about the scrapping policy of the old vehicles.

Disappointing budget for traders

Jagannath Kale

President, Aurangabad Zilla Vyapari Mahasangh: More than 8 crore traders across the state had gone through distress due to corona for the entire last year. It was expected that the Government will consider the woes of the traders and provide relief to them. However, there is nothing substantial for them in this budget. It was expected that they would be given relief in the taxes and loans at lesser interest. There is nothing for farmers and traders in this corporate-centred budget.

Tourism has been neglected

Sunit Kothari,

Industrialist

Tourism was the first to get impacted in this pandemic and will be the last sector to revive, post the pandemic. Several tourism bodies had made pre-budget memorandums and representations to the FM. Tourism got absolutely no relief in this budget. The humongous direct and indirect employment opportunities that tourism creates and the multiplier effect that it has on India’s economy is seldom understood and appreciated. It’s the only medium to bridge the gap between the rich and the poor.

No wavier of fees for filing returns tax late

CA Ganesh Shilwant

(Chairman, Institute of Chartered Accountants of India, Aurangabad branch):

Senior citizens above the age of 75 years having only pension and interest income have been exempted from filing of Income Tax Returns. The tax exemption has been given for affordable housing projects, but how many projects are going on and will benefit because of this tax exemption is questionable. There is no announcement for waiving late fees for delayed filing of various tax returns

because of Covid. No measures or mechanism have been announced for control of the increased petrol and diesel prices.

Infra, agri & health sector-centric

CS Paresh Deshpande (Chairman, Institute of Company Secretaries of India, Aurangabad Chapter):

Considering the Covid-19 pandemic and the challenges faced by the Government, the Finance Minister has done commendable balancing act and attempted to address the trust deficit across a host of sectors.

The FM has assured stock market investors by abolishing Dividend Distribution Tax and revamping of the Corporate Tax Structure. It will improve the return on investment for the foreign investors here. This may be called as ‘infrastructure, agriculture and health sector centric-budget.’ It is empowering each and every citizen of the country and taking the nation on path of being Aatmanirbhar Bharat.

CMA Parag Rane,

Chairman, Institute of Cost Accountants of India, Aurangabad chapter

Budget is economic vaccine

The Covid-19 pandemic has damaged the global economy with millions of jobs lost. In significant changes to the taxation process, budget announced the scrapping of income tax for senior citizens under certain conditions, new rules for removal of double taxation for NRIs and reduction in the time period of tax assessments among other measures. The budget also announced that the advance tax liability on dividend income shall arise after declaration of payment of dividend. Most importantly, tax slabs have not been tampered with.

Budget has many laudable steps

Gautam Sethiya, President, Tax Practitioners Association, Aurangabad

The budget is good for a number of reasons like exemption to senior citizens of certain categories from filing Income Tax Returns, reassessment from 6 years to 3 years in serious tax evasion cases, faceless Income Tax Appellate Tribunal hearings, tax audit of digital transactions from Rs 5 crore to Rs 10 crore and increase in limit from Rs 1 crore to Rs 5 crore in trusts (educational and hospitals).

However, no benefit has been given to individual taxpayers. 80 C deductions should have been increased to Rs 3 lakh, deductions for Covid- 19 hospitalisation for individual should have been given under section 80DDB.

Amrish Joshi,

Senior architect

Good for infrastructure development

The budget has many positive aspects like provision of Rs 1.41 lakh crore for Swachh Bharat mission, liquid waste management in 500 cities, Rs 2,217 crore for clean air in 42 cities, launching of 7,400 projects under the National Infrastructure Pipe, investment for improving national highways and infrastructure and railway and MSMEs. However, there was scope to improve manufacturing sectors.

No relief in duty for transporters

Fayaz Khan (President, Aurangabad Goods Transport Association): The budget is not up to the mark for heavy vehicles and transport. The transporters were expecting relief in duty in the budget because of the impact of Covid-19 pandemic on our business. The association has taken up the matter with the All India Motor Congress. The latter would hand over a memorandum to the central government. If the government does not take any action, the transporters will give a call for Chakka Jam.

Balanced budget, gives something to all

Deepak Baheti

Entrepreneur

I feel it is a balanced budget giving something or the other to all the sectors of society. In the post-pandemic situation, it promises to boost health, economical, agriculture and industrial sectors. The provision of roads and metro trains and other infrastructure development schemes would bring in more job opportunities. Relaxation in excise duty will help small scale industries to grow. Besides, the efforts to make India healthy, senior citizens, NRIs, the general public have got something. It’s a proactive and not a reactive budget.

LIC disinvestment not in interest of citizens

Rajendra Padalkar, Divisional Manager (Retired) Life Insurance Corporation: LIC is the biggest public sector unit under the control of the government. The motto behind the nationalization of the insurance business was to utilize the people’s money for the welfare of the people. Several government schemes are implemented through this money. However, the control of the government over this wealth will be limited due to the participation of the private players. The decision of the disinvestment in LIC is not in the interest of the employees and even the citizens.

Budget disappoints farmers

Dr Jitendra Dehade

(Working President, Maharashtra Congress Scheduled Caste Cell):

The budget is disappointing for farmers and does injustice to the State. The devastation and destruction of the economy has been repeated in today's budget. Favouring the selected capitalists' proposals for economic development, today's budget is not good for the development of Maharashtra. This is the kind of the budget that exploits the farmers financially and demoralises them, given the total crisis, last year.

Dr Rajesh Ragade

Director, Tourism Administration (Bamu)

Balanced budget for tourism and hospitality

The budget has an allocation of Rs 1008.83 crore for development of tourism infrastructure. Of which, Rs 668.72 crore is for tourism promotion and publicity and Rs 524.02 crore for overseas marketing. In the post-Covid scenario, it will help enhance the foreign tourist arrivals. The allocation of Rs 63.65 crore on Capacity Building Programme for Service Providers and Rs 138.65 crore for training and skill development will also be of great help. However, there is no package for tourism industry which suffered losses.

Budget to boost Aatmanirbhar Bharat

Vaibhav Chopade (Student): The budget has come at a time when all of us desire to give greater impetus to the economy. An aspirational, responsible and a growth-oriented budget. Several path-breaking initiatives by the minister will spur the economy and ensure that India grows extremely well for the rest of the decade. There are several measures for simplification of business and helping the common man. This Budget has a special focus on strengthening the agriculture sector and boosting farmers' income and brings several positive changes for individuals, investors, industry and infrastructure sector.

Disappointing budget for youth

Kailas Kharat

Educated unemployed

In the name of providing succour to farmers, the government introduced agriculture infra cess of Rs 2.5 per litre on petrol and Rs 4 per litre on diesel. The cess has also been imposed on pulses, lentils, cooking oil and fuel. It will burden the common man, whose struggle to recoup his financial condition is already underway, after Covid-19 pandemic. It is justified to collect cess on gold, silver and alcoholic beverages. The aspiring youths or educated employed have been disheartened.