Positive for unemployment rate
Budget 2013 is ‘pragmatic and growth oriented’ and has been structured to increase the growth rate of sectors such as infrastructure, power, agriculture and manufacturing. This is in line with our expectations and we expect the reforms to have a positive impact on the unemployment rate.
The incentivised approach proposed for the National Skill Development Corporation is welcome. The 29.4 per cent hike in planned spending signals the Government’s intent to raise productive investment.
The proposal to increase the allocation to the HRD Ministry by 17 per cent, the Rs 1,000-crore allocation to extend the skills of youth and the Rs 27,258 crore allocation for the Sarva Shiksha Abhiyan scheme to implement the Right to Education Act and secondary education are commendable.
— E. Balaji, MD & CEO, Randstad India
Not enough for healthcare
The Budget has increased the overall allocation for the health sector by 21 per cent compared with the previous year’s figure (the real increase is only 14 per cent) but fell short of expectations in some vital areas. The National Health Mission (NHM), which now combines the National Rural Health Mission (NRHM) with a newly added National Urban Health Mission (NUHM), has had a modest increase over last year’s allocation to the NRHM.
Given that the real increase is only about 17 per cent, the huge agenda of reconfiguring urban health services, especially urban primary healthcare, cannot be addressed in an impactful manner. All we can hope for is early initiation through some pilots.
The allocations for geriatric care, medical education and research, establishment of AIIMS-like institutions and expansion of RSBY services are welcome.
However, the priority in the health sector has to be for strengthening the long neglected area of primary healthcare, both in the rural and urban settings.
— K. Srinath Reddy, President, Public Health Foundation of India
No negative surprises
A
midst an economic slowdown the Budget turned out as expected — a realistic one with no negative surprises. It doesn’t have fireworks and rightfully focuses on inclusive growth with the spotlight on areas such as infrastructure development and promoting savings.
Also, given that the general elections are around the corner, it was refreshing to see that it was not a populist Budget.
The impact on the consumer goods sector is neutral. The corporate tax rates have been marginally increased, which is unlikely to have a significant impact on profitability. Though the FMCG sector is unlikely to get a big boost, the little cheer that the Budget brings to the ‘aam aadmi’ may benefit the sector, especially in the rural areas.
— Saugata Gupta, CEO, Marico Ltd
An ill-timed import duty hike
The DTH industry is already paying 32 per cent of its revenue as taxes. “When the Government’s digitisation mandate is entering its second phase, the industry requirement is many times normal and there is no local manufacturer of repute who can deliver quality boxes in such quantities. Therefore, this increase seems out of place and in all fairness should be reversed.” — Harit Nagpal, President, DTH Operators’ Association of India and Managing Director, Tata Sky Ltd
No specific steps for biotech, vaccine industry
As far as the industry is concerned, the major benefit is the 15 per cent investment allowance on plant and machinery for investments above Rs 100 crore. Increasing outlays for skill improvement for the National Skill Development Corporation and more funding for SIDBI for MSME funding are practical measures.
There are no specific measures to benefit the biotechnology industry or the vaccine industry in terms of tax exemptions or benefits.” — K. V. Balasubramaniam, Managing Director, Indian Immunological Ltd