Sanjay Bhatia, MD, Hindustan Tin Works
It is, overall, a good budget because the government has reiterated its commitment towards reduction in the fiscal deficit, focus on food sector, thrust on food processing and reduction of the post-harvest food wastage. Setting up five more food parks is indeed welcome and will benefit agro industries in a big way.
The government has announced a number of noteworthy social schemes on education, health, infrastructure and clean energy, but the right delivery system needs to be ensured so that the money reaches the target population.
Reduction in surcharge from 10–7.5% will leave more money in the hands of corporates for further investment and growth.
Increase in the excise duty from 8% - 10% and a rise in duties on petroleum products would have an inflationary impact on goods across the board.
The government's move of providing concessions for infrastructure, while simulteneously increasing the peak rate of excise duty in steel and cement, goes against the infrastructure projects. The metal packaging industry is grateful for the rise in the excise duty on OTSC Cans, as this would result in correcting inverted duty structure and help the industry in tackling the huge balance in the Cenvat account.
Overall, it is a predictable budget, with virtually no surprises.
