FTCCI terms budget as balanced one, addresses industry needs

: The Federation of Telangana Chambers of Commerce and Industry (FTCCI) on Saturday said the Union Budget is balanced and addressed the needs of all sections of society - farmers, women SHG groups, salaried class, individual tax payers, MSMEs and companies.

The Finance Minister (Nirmala Seetharaman) has considered majority of the concerns expressed by industry and given major reliefs like: increasing the turnover limit from one crore to five crore for compulsory audit, abolition of dividend distribution tax for companies, bringing smaller NBFCs under SARFAESI Act, FTCCI president Karunendra S Jasti said in a statement.

The budget has reduced the loan size from Rs one crore to Rs 50 lakh for applicability of SARFAESI Act, extension of debt restructuring facility for MSMEs till March 2021, extension of tax holiday for developers of affordable housing by one year, Jasti said.

The theme of the budget, based on the three aspects of Aspirational India, Economic Development and Caring Society, is aimed at giving equal importance to welfare, well-being and development, he said.

The government has more or less succeeded in addressing all three - by giving enough impetus - agriculture, irrigation and rural development, he said.

The expenditure on infrastructure projects is essential to revive the economy facing recessionary trends, he said.

The changes in personal income tax slabs and rate cuts are welcome step and help improve the purchasing power in turn leading to increase in consumption demand, Jasti said.

But the net effect of the reductions can be known only after examining the exemptions and deductions removed/retained, he said.

Chairman of Dr Reddys Laboratories Ltd Satish Reddy said he is happy to see healthcare continuing to be an integral part of the governments key priorities as per the Union Budget.

But, there is disappointment in some quarters with expectations of the industry not being met, as the budget was seen to be an opportunity to announce bold reforms, he said.

The industry had high expectations of this budget as it was seen to be an opportunity to announce big, bold reforms given the state of the economy. On that count, there is a degree of disappointment in some quarters as expectations have not been met, he said.

Reddy, who is president of the Indian Pharmaceutical Alliance, said he is, however, happy to see that healthcare continues to be an integral part of the governments important priorities.

The announcement on the expansion of the Ayushman Bharat programme by setting up additional hospitals in tier 2 and 3 cities is a welcome move. Other measures in improving the healthcare infrastructure and capacity-building in the sector are also commendable, he said in a press release.

"I would have, however, liked to see a significant financial incentive to boost exports and improve the competitiveness of the pharmaceutical sector. I hope this will take shape with a new export incentive scheme," Reddy said.

The overall thrust on ease of doing business, regulatory simplicity and policy stability should help the pharma industry scale new heights, he added.