Union Budget: Business bodies welcome budget allocation hike

GUWAHATI: Welcoming the Interim Budget 2019 -2020, Numaligarh Refinery Limited (NRL) director S K Barua said the increase of 21% in the allocation to the tune of Rs 58166 crores would help in ensuring speedy development of infrastructure in the northeast, including Sikkim.

“There is also an allocation of Rs 19,000 crore for construction of rural roads. Our industries in NE require substantial infrastructure support and this will help. Besides, a number of initiatives for growth in the farm sector have been taken. The Budget will increase the purchasing power of the middle class and will help boost consumption,” added Barua.

Budget analyst and former chairman of Federation of Industry and Commerce of North Eastern Region (FINER), RS Joshi, said the Budget is a well thought out exercise to assuage the distress in varied degrees of all sections of society. “A very smart move on the eve of general elections. Direct bank transfer (DBT) to farmers and direct tax benefits(DTB) to the middle class are going to have an impact on the upcoming Lok Sabha election. Except the corporate sector, there is some direct bonanza for every class of voters — farmers, workers and the middle class,” he added.

Assam Real Estate and Infrastructure Developer’s Association (AREIDA) president PK Sharma said there are numerous provisions in the Budget which directly and indirectly support the real estate industry. “Formal recognition in the Budget to reduce GST burden on homebuyers is a matter of satisfaction for real estate industry. Increasing the TDS on rental income threshold to Rs 2.4 lakh would make real estate an attractive investment option,” added Sharma.

Reacting to the Interim Budget, FICCI’s North East Advisory Council chairman Ranjit Barthakur said: “The focus on rural empowerment is a very welcome step and will go a long way in leveraging the strengths of rural India, be it support to farmers or focus on rural industries.” Indian Chamber of Commerce (ICC) said the Interim Budget was pro-growth and inclusive, with strong focus on social and physical infrastructure creation.

“The Pradhan Mantri Kisan Samman Nidhi, effective from December 1, 2018, will assist small and marginal farmers of the northeast. It has also promised INR 6000 per year for farmers owning upto 2 hectares of land. This will help in providing structured income support to poor landholders to procure seeds, machineries and other input requirements,” the ICC said.

The CII said the Interim Budget has done a fine balancing act between the economic compulsions of fiscal consolidation and catering to the imperatives of inclusive growth in an election year.