BENGAL Chamber welcomes 2020 Union Budget rating it 6/10

The Bengal Chamber of Commerce & Industry has hailed The Union Budget 2020 saying it is focused on boosting demand and consumption through tax relief- particularly DDT; spurring investment through corporate measures and deepening infrastructure and agriculture led spending. Notwithstanding possible breach of fiscal deficit target while trying to boost exports,  B B Chatterjee, President, Bengal Chamber of Commerce & Industry says in a statement in Kolkata. At a time of falling demand and consumption in the country, the FM’s thrust on Trade, Industry, Infrastructure and Agriculture can be considered forward looking and aspirational Budget. The FM also outlined steps for higher spending in rural areas and providing option of significant reduction in personal income tax rates while removing a large number of exemptions. Quite ambitiously she has tried to relax fiscal targets based on a nominal GDP growth of 10 percent. She has also provided tax stimulus by abolishing DDT to spur investments. The Budget has given a subtle push to privatisation and set an ambitious disinvestment target with LIC IPO in focus. The proposed amendment in Companies Act towards removal of criminal proceedings for civil actions is a welcome relief for corporates. Remission of Duties & Taxes on Exports Products under Foreign Trade Policy and increased focus on exports insurance is likely to boost that sector. Again, Warehousing & Cold Storage on PPP Model, Hospitals under PPP Mode augurs well for industry.  Mobilization of ECBs & FDI in Education Sector, creation of Investment Clearance Cell for end-to-end help to set up Industry including land banks, are also likely to boost Industry sentiment. As expected the Government brings in VIVAAD SE VISHWAS SCHEME to further reduce Tax Disputes whereby there is exemption from interest & penalty for disputed cases where payment is made by 31st March 2020. However, capital expenditure growing at 20% and Fiscal Deficit targets under stretch will remain a concern for the economy. The Bengal Chamber rates the budget 6 / 10.

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