Bengaluru, Feb 1 (IANS): Terming the Union Budget for fiscal 2021-22 balanced in the post-Covid pandemic, Federation of Karnataka Chamber of Commerce and Industry (FKCCI) president P.M. Sundar on Monday said Union Finance Minister Nirmala Sitharaman spared the common man from additional tax burden in the form of Covid cess and other taxes as feared.
"The budget has not burdened the common man with additional tax or Covid cess and tax structure has been retained," Sundar said in a statement here.
Contrary to expectations of the trade and industry, Sunder said the budget had no relief for the Covid-hit micro, small and medium enterprises (MSMEs), which are the backbone of the country's economy.
"It is heartening to know that the budget has given a push to the health sector with substantial allocation, as it has been under strain due to Covid-induced fallout over the year," pointed out Sundar.
The budget has earmarked Rs 35,000 crore for anti-Covid free vaccination to beneficiaries across the country.
Though the cash-strapped Central government's hands were tied down for giving reliefs or provide more funds for new projects, Sundar said the Rs 1.75-lakh crore disinvestment plan, privatisation of port management, issue of infrastructure bonds and increasing foreign investment in the insurance sector to 74 per cent from 49 per cent are part of major reforms.
"As the MSME sector is a major employer across the country, it needs hand-holding by the government in these challenging times due to the pandemic," reiterated Sundar.
The FKCCI President also hoped steel prices would reduce as import duty on it and its scrap has been tweaked.
"The government, however, should prevent local cartelisation and supply steel to the MSME sector at subsidised price," added Sundar.
It's a relief that the fiscal deficit for the current year (2020-21) has been pegged at 6.8 per cent of the Gross Domestic Product (GDP) against the earlier projection of 9.5 per cent.
"Retail price of petrol and diesel should be reduced substantially by lowering duties on them to give relief to the common man," said Sundar.