While commenting on the Union Budget for the year 2016-17, MCC Chamber of Commerce & Industry welcomed the major focus given by the Union Finance Minister on Agriculture, Infrastructure development, Skill development, besides others.
Welcoming the Large Scale investment on Irrigation, the Chamber feels that implementation is important as we are spending every year on the irrigation but we have failed to bring an extra area under this facility. Although the Budget seems to be well-balanced on the Fiscal front and the Fiscal deficit is pegged at 3.5 p.c. of GDP, it is felt that there may be slippage once the Seventh Pay Commission benefits are announced.
The Chamber inter-alia also welcomes the following steps proposed by the Finance Minister – Massive increase in public spending on infrastructure to Rs.2.21 lac crores, an increase of 22.5 p.c. promoting a tax friendly regime and minimizing the litigation through a new Dispute Resolution Scheme, amendment to Companies Act to facilitate Ease of Doing Business and assuring Registration by a single day is well appreciated. The Budget also provide for improving the enabling environment for Startups and providing 100 p.c. deduction of profits for 3 out of 5 years for Startups.
However, increase in CESS on Coal by Rs.200/- per ton is likely to increase the input cost of coal based industries. With the intention to curb Black money, opening of limited period compliance window for declaring undisclosed income is a good gesture, but in reality it created little impact in the past.