Welcoming some of the proposals in the budget at macro level, the business community in Telangana and Andhra Pradesh today said the overall budget, however, falls short of expectations with regards to allocations for both the states.
Federation of Telangana and Andhra Pradesh Chambers of Commerce and Industry (FTAPCCI) said it was not a “big bang” budget.
“The whole country was expecting a big bang budget. It was not to be. FTAPCCI feels that the Finance Minister has given a direction which will increase development and growth in the country in a phased manner i.E. In the next 2-3 years, rather than being a big bang budget,” FTAPCCI said in a statement.
The extension of visa-on-arrival to 150 countries will boost tourism and medical tourism, the industry body said.
“Five new Ultra Mega Power Projects, each of 4000 MW on plug and play mode is welcome step. For Andhra Pradesh and Telangana there is no specific allotment except IIT for AP and development of Qutub Shahi tombs,” it added.
FICCI chairperson for Telangana and AP states, Sangita Reddy said it is heartening to know that the budget is very much in support of empowering states.
“This will enable states like AP and Telangana to grow in much faster pace and achieve desired results of development,” she said.
GVK Reddy, Founder Chairman of GVK Group said it is a “very positive and a growth-oriented budget” with a strong focus on infrastructure development.
“Investments of Rs 70,000 crore along with the risk sharing mechanism for PPP projects; setting up of a national investment and infrastructure fund; deepening of the Bond markets etc will help revive infrastructure investment,” Reddy said.
Other ideas like abolition of wealth tax, creation of social security for all, focus on ease of doing business and a more predictable tax regime are all steps in the right direction to take the economy to a double digit growth over the next few years, Reddy added.
BVR Mohan Reddy, Executive Chairman Cyient Ltd and Vice Chairman Nasscom, said though for start-up and SMEs, the Self Employment Talent Utilisation (SETU) and the techno-financial incubation scheme is a big positive, the increase in service tax rate, by 1.5 per cent, is disappointing.
Vanitha Datla, Chairperson, CII Telangana, while welcoming the budget, said she expected some budgetary allocation to support the incentives promised through state reorganisation act. “However, it did not happen,” she said.