Finance Minister P Chidambaram said the Union Budget for 2008-09 would stimulate investment and consequently growth, while pointing out that he had done the best through the budgetary exercise by providing credit facilities to the farm sector.
"Credit is only one element of the story in the farm sector. I provided more credit. Budget can only address credit side... the farm sector has not done too bad this year," he said in his post-Budget comments.
The Finance Minister had announced debt waiver and relief worth Rs 60,000 crore to small and marginal farmers in the Budget, the last full financial statement before the general elections next year.
India Inc Gives Thumbs Up to Budget
"This Budget will stimulate investment and growth and that growth will create wealth... the economy is growing by 8 per cent, people have become more tax compliant and they are willing to pay taxes," he said on the buoyancy in government's revenues.
The Indian industry and investment bankers on Friday gave a thumbs up to the Union Budget, saying Finance Minister P Chidambaram has done a "fantastic" job.
"Budget is on the expected lines and the industry has not been penalised although we are disappointed that the corporate tax has not been changed," apex industry body CII's President Sunil Mittal said.
"Corporate taxes are at fair levels. An increase of five per cent on short-term capital gains will make people hold for medium term," Kotak Mahindra Bank managing director Uday Kotak said.
Industrialist Sajjan Jindal, vice-chairman and MD of JSW Steel said: "This is a mixed budget and the FM has not touched upon the corporate tax, which we were anticipating.
Although there is a little disappointment on not meeting the concerns on iron ore conservation and the taxes imposed on chrome ore export are also a long-pending demand of ours, which is a welcome step, he added.
