New Delhi, Jul 15 (KNN)  A whopping 85 per cent of CEOs belonging to sectors such as real estate and building, infrastructure, IT and ITes, renewable energy and power have said that the recently announced Union Budget 2014-15 has met with their expectations, according to a survey.
 
The Union Budget 2014-15 was announced amid high expectations in the industry on July-10
 
“The Finance Minister presented a balanced budget giving due cognizance to the issues currently being faced by India's economy. Getting back to the pre crisis growth level is of paramount importance given the need to generate jobs and assure inclusive growth. The emphasis given to sectors like manufacturing, infrastructure, tourism, textiles and housing, which have the potential to create both skilled and unskilled job opportunities is indeed applaudable,” a FICCI release said, referring to the sentiments revealed in its survey.
 
Besides, the fiscal deficit to GDP target for the current financial year has been kept unchanged at 4.1 per cent, which is the same as indicated in the interim budget announced earlier this year.
 
“The government has given a clear signal that it will attempt moving towards a more efficient expenditure management system and a rationalised tax framework. The resolve to get back on the path of fiscal consolidation seems strong. Nonetheless, we will have to wait and watch the implementation strategy of the government,” it said.
 
In addition, government's resolution towards inflation management is noticeable. The announcements of setting up a Price Stabilization Fund and working with states in re-orienting APMC Act will help tackle elevated food prices. Further, measures to enhance agriculture productivity will enable inflation management on a sustainable basis in the long run.
 
Given this backdrop, FICCI conducted a quick survey amongst its members to gauge the sentiment post budget. The survey results are based on responses from about 60 CEOs, who are members of FICCI's National Executive Committee.
 
Many were optimistic about the near term prospects. “They felt that the budget for this fiscal year is pro-growth and going ahead the government is expected to push reforms,” the survey report said.
 
Significantly, about half of the CEOs who took part in the survey indicated that they propose to increase their investments in near future. Another 45 per cent cited no change in investment levels, while only 5 per cent expected it to fall.

FICCI considers this a significant improvement over the sentiment noted in the recently released FICCI’s Business Confidence Survey in which about 37 per cent of the respondents had cited higher investments in near term. The buoyancy with regard to investment prospects seems to be recuperating, after being on a downtrend in the past few quarters.

Specific aspects that have been given the thumbs up sign by the industry are - Pro Growth;  Focus on employment generation and entreprenuership development; no retrospective application of tax provisions which creates fresh liability and permitting advance ruling for Indian assesses; and revision in definition of MSMEs. 

They have also hailed the budget for lowering of the threshold limit of investment allowance; emphasis on infrastructure and housing; benefits to the Power sector; resolve to address coal and iron ore issues; support for skill development; and promoting use of Information and Communication Technology.

However, the CEOs pointed out that there was no concrete announcement on Goods and Services Tax (GST).  They were also unhappy with the proposed changes in computation of Dividend Distribution Tax (DDT); capital gains on Mutual Fund; disallowing CSR as a business deduction; service tax exemptions and negative list pruned; minimum Alternate Tax issue remains;   that the issue of land is outside the ambit of the Budget, although it needs to be addressed on a priority basis.  (KNN/ES)