BHUBANESWAR: The Union Budget drew mixed response from the state government with chief minister Naveen Patnaik on Saturday welcomed initiatives like spending on agriculture and FDI in education while expressing concern over stagnant allocation under centrally sponsored schemes and shrinking of divisible pool.
Naveen apprehended that Odisha will lose around Rs 3,000 crore in the current 2019-20 financial year as the divisible pool of Central taxes has shrunk by almost 59,000 crore.
“We welcome initiatives like Krishi Rail and Krishi Udan for a seamless national cold supply chain. The PM-KUSUM to provide 20 lakh farmers with solar pump is a welcome move,” said Naveen in his reaction on the budget of the Narendra Modi government.
The chief minister also appreciated the announcement for a new education policy and foreign direct investment (FDI) in education sector.
As finance minister Nirmala Sitharaman announced abolition of dividend distribution tax (DDT) with a big boost to investment, Naveen lauded the move. He also welcomed introduction of concessional component tax.
“Odisha had requested for extension of concessional tax rates to cooperatives in line with corporate tax cuts. We welcome the announcement of concessional tax rates for cooperatives and increase of deposit insurance coverage from Rs 1 lakh to Rs 5 lakh,” said Naveen.
While announcing concessional tax rates for cooperative societies, the Union finance minister had announced that the cooperative societies play an extremely important role in our economy.
Though the cooperative societies are currently taxed at a rate of 30 per cent with surcharge and cess, they will not be taxed at 22 per cent with 10 per cent surcharge and 4 per cent cess, said official sources.
The chief minister expressed concern over poor allocation for strengthening drinking water Naveen said a national priority.
“Allocation of 11,500 crore nationally against an approved plan of Rs 3.6 lakh crore is too little. In fact Odisha spends about Rs 3600 crore in drinking water,” Naveen said adding almost all allocations under the centrally sponsored schemes have been stagnant.
As the Sensex dropped by almost 1000 points after the budget announcement, Naveen said the trend shows that there is a huge scope to take several measures as Sensex is an indicator of investor confidence.
The chief minister said investor confidence is important for attracting investment and to spur growth which is the biggest challenge now. “This will have a huge impact on job creation and livelihood options for our youth,” Naveen added.
The budget got thumbs up from the industry fraternity of the state. Chairperson of FICCI Odisha State Council, Monica Nayyar Patnaik said, “Various measures announced by the government will strengthen India, individuals and industry. The personal income tax reduction would help putting more money in the hands of people.”
J B Pany, co-chairman, ICC Odisha State Council said the decision to set up investment clearance cell to facilitate investors investment advisory, land bank and facilitate clearances is appreciable.
Naveen apprehended that Odisha will lose around Rs 3,000 crore in the current 2019-20 financial year as the divisible pool of Central taxes has shrunk by almost 59,000 crore.
“We welcome initiatives like Krishi Rail and Krishi Udan for a seamless national cold supply chain. The PM-KUSUM to provide 20 lakh farmers with solar pump is a welcome move,” said Naveen in his reaction on the budget of the Narendra Modi government.
The chief minister also appreciated the announcement for a new education policy and foreign direct investment (FDI) in education sector.
As finance minister Nirmala Sitharaman announced abolition of dividend distribution tax (DDT) with a big boost to investment, Naveen lauded the move. He also welcomed introduction of concessional component tax.
“Odisha had requested for extension of concessional tax rates to cooperatives in line with corporate tax cuts. We welcome the announcement of concessional tax rates for cooperatives and increase of deposit insurance coverage from Rs 1 lakh to Rs 5 lakh,” said Naveen.
While announcing concessional tax rates for cooperative societies, the Union finance minister had announced that the cooperative societies play an extremely important role in our economy.
Though the cooperative societies are currently taxed at a rate of 30 per cent with surcharge and cess, they will not be taxed at 22 per cent with 10 per cent surcharge and 4 per cent cess, said official sources.
The chief minister expressed concern over poor allocation for strengthening drinking water Naveen said a national priority.
“Allocation of 11,500 crore nationally against an approved plan of Rs 3.6 lakh crore is too little. In fact Odisha spends about Rs 3600 crore in drinking water,” Naveen said adding almost all allocations under the centrally sponsored schemes have been stagnant.
As the Sensex dropped by almost 1000 points after the budget announcement, Naveen said the trend shows that there is a huge scope to take several measures as Sensex is an indicator of investor confidence.
The chief minister said investor confidence is important for attracting investment and to spur growth which is the biggest challenge now. “This will have a huge impact on job creation and livelihood options for our youth,” Naveen added.
The budget got thumbs up from the industry fraternity of the state. Chairperson of FICCI Odisha State Council, Monica Nayyar Patnaik said, “Various measures announced by the government will strengthen India, individuals and industry. The personal income tax reduction would help putting more money in the hands of people.”
J B Pany, co-chairman, ICC Odisha State Council said the decision to set up investment clearance cell to facilitate investors investment advisory, land bank and facilitate clearances is appreciable.
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