Com­ments on the Bud­get from key busi­ness lead­ers:

Enterprise - - Economy -

R. Ra­mase­shan, MD and CEO, Na­tional Com­mod­ity and De­riv­a­tives Ex­change of In­dia (NCDEX):

The fo­cus of this bud­get has been to cre­ate an en­abling en­vi­ron­ment for achiev­ing the tar­geted growth of 7.5 per­cent in 2012-13. Both the Eco­nomic Sur­vey (2011-12) and Union Bud­get (2012-13) have em­pha­sized on growth pro­pelled by re­vival of the in­dus­trial sec­tor which is very good as it will add to the busi­ness con­fi­dence and give a greater sense of pur­pose to var­i­ous sec­tors of the econ­omy.

Agri­cul­ture, for in­stance, will most likely re­ceive a boost with the ex­ten­sion of the vi­a­bil­ity gap fund­ing to ir­ri­ga­tion and fer­til­izer sec­tors. The agri­cul­ture sec­tor is also go­ing to ben­e­fit from the in­cen­tives given for ware­hous­ing. The tar­geted al­lo­ca­tion of Rs. 5000 crore un­der RIDF for cre­at­ing ware­hous­ing fa­cil­i­ties is a wel­come move. The ra­tio­nal­iza­tion of var­i­ous schemes for agri­cul­ture un­der 5 main mis­sions should help tar­geted sup­port for these mis­sions.

Since no growth can hap­pen with­out ad­e­quate re­sources, the bud­get has rightly con­cen­trated in adding vi­brancy to the cap­i­tal mar­kets by sim­pli­fy­ing the process for ap­ply­ing for Ini­tial Pub­lic Of­fers (IPOs), al­low­ing QFIs to ac­cess In­dian cor­po­rate bond mar­ket, rais­ing FII in­vest­ment limit in gov­ern­ment bonds, among other mea­sures.

One area of con­cern is the fis­cal deficit which has reached a high of 5.9 per­cent of the GDP in the cur­rent fi­nan­cial year thanks to the grow­ing sub­sidy burden. It is im­per­a­tive to con­tain deficit be­fore it goes out of con­trol. It was re­as­sur­ing that the bud­get has re­it­er­ated the Gov­ern­ment’s de­ter­mi­na­tion for rein­ing in fis­cal profli­gacy by aim­ing to re­strict the sub­sidy to GDP ra­tio to 2 per­cent in the com­ing year. We hope this will be ad­hered to as will the in­tent of im­prov­ing the de­liv­ery sys­tem which will help to plug in the leaks in the sys­tem of pub­lic dis­tri­bu­tion.

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