Interim budget likely to focus on job creating sectors
Faced with an extraordinary circumstances following global financial meltdown, the government is likely to focus on labour intensive and export oriented sectors in its interim budget on Feb 16 to protect jobs.business Updated: Feb 08, 2009 13:31 IST
Faced with an extraordinary circumstances following global financial meltdown, the government is likely to focus on labour intensive and export oriented sectors in its interim budget on February 16 to protect jobs.
The interim Budget to be presented by External Affairs Minister Pranab Mukherjee, who is currently holding the charge of finance portfolio, may not contain any major policy decision, but it could cut certain indirect taxes to address the urgent concerns to arrest economic slowdown.
"Alleviating job losses should be the government's priority. Demand for exports has gone down, so sectors like gems and jewellery, textiles etc need to be revived so that more jobs can be created," Prime Minister's Economic Advisory Council Chairman Suresh Tendulkar told PTI.
Tendulkar further said that fiscal space of the centre is limited due to growing subsidies adding that public expenditure has also increased.
Crisil principal economist D K Joshi said indirect taxes may be slashed in the interim budget, but he does not expect any cut in the direct tax.
Joshi said construction, automobiles and export oriented sectors might get some benefit from the budget.