The commerce, industry and manufacturers in this region today welcomed the Union budget presented by Finance Minister, Pranab Mukherjee in the Parliament, particularly the introduction of Goods and Service Tax by April 2011.
Talking to reporters, Mahendra Ramdass, president of Indian Chamber of Commerce and Industry, however, said the increase in the petroleum products would have cascading effect on every articles, which would result in inflation.
Welcoming the reduction of sucharge on companies to 7.5 per cent from 10, Mahendra hailed increase in personal income slabs, which in long term would benefit middle class.
Jayakumar Ramdass, president, Southern India Engineering Manufacturers' Association (SIEMA) also welcomed the announcement on fiscal deficit, which would be seen at 4.8 per cent and 4.1 per cent in 2011-12 and 2012-13 respectively.
Welcoming the proposed increase in income tax slabs, reduction of surcharge on companies and 10 per cent service tax, Jayakumar hailed national social security fund created for workers in unorganised sector with allocation of Rs 1,000 crore.
The finance minister could have postponed the two per cent hike in excise duty to next year and expressed dippointment for not announcing skill development programme for engineering sector, Jayakumar said.
Saying hike in petrol price would lead to inflation, he said SIEMA was disappointed over not announcing technology upgradation fund for engineering sector and expected reduction in bank interest rates for MSMEs.