Post Budget Reactions
Prominent personalities speak out
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The objective of the Union Budget
for 1997-98 was to improve the condition of economically
backward people and eliminate poverty through rural and
agricultural development. " The Budget has given a thrust to rural development, agricultural sector, social sector and poverty elimination" He said in post-budget reaction. " We have launched five new programs to help the poor sections of the society and those who have been neglected for long." he said and mentioned programmes like Ganga Kalyan Yojana for providing water in villages and the Kasturba Gandhi Shiksha Yojana to establish special schools for girls." Over Ten lakh unemployed youth will assistance in the new program and we hope to make this to 50 lakh in the 9th Plan." Mr. Gowda added. |
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The concessions given to the
industry were over due. His concern was more on
infrastructure activity in the country. Infrastructure
cannot boost the economy by tax concessions but by long
term policy and giving boost to the financial sector
which has not been covered by this Budget. He stated that
about energy sector nothing has been said in the Budget.
Petroleum prices have not been touched. The tax regime is to be reformed and the administration has to be strengthened to bring it to the international level and not only by the tax rates. He said that Mr.Manmohan Singh initiated the process of reforms which were overdue but implementation is lacking. Regarding agricultural sector, no concessions or incentives have been announced. There is no mention of irrigation facilities and bringing more land under cultivation for which no allocation has been made in the budget. The Economic Survey of India envisaged inflation of 54.5% in cereals and about 17.5% in the oil sector. The inflation will increase with the proposals in the Budget. His view was that more money should have been allocated for the modernisation of Defence. Provision of Rs.3300 crores has been made in this Budget to implement the recommendations of the Pay Commission. The Government has yet to decide in which form it is to be given to the employees; whether in cash or in bonds or partly in cash and partly in bonds. |
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Union Budget 1997-98 for meeting
the expectations of the Capital Market and expressed the
hope that the markets would perk up in the near future " The impact of the budget will be quite good on the bourses. He has granted all the demands of the markets." |
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This years Union Budget was not growth oriented and would cause inflation. Headed that it would impose burdens on the common man in the fields of services railways and postal services.He said there was no proposal in the budget to encourage capital investments in the agriculture sector. The Government promise of granting autonomy to RBI is only half-hearted. While no steps were taken to encourage SSI's. |
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The budget as pro-poor and growth
oriented but expressed apprehension that the lowering of
import duties might have an adverse effect on Indian
industries. Mr. Chatterjee said though the tax burden on the common man lowered, " It would be crucial to see how the centre widens its tax net or else there might be some difficulty in meeting the revenue receipts. |
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