Funds for rural development, national highways, infrastructure, ports, all show signs of a progressive budget, as does reducing government holding to 33 per cent in banks. The Finolex group will benefit from the tax and duty rationalisation, especially on optical fibre and plastic. He agrees that the budget will result in the growth of information technology, telecom, and entertainment industries. He welcomes the liberalisation of the regulations for venture capital, and excise simplification and single rate. But change related to the special excise is unclear.
Implementation has to be sincere.
And, interest tax abolition is welcome. Tax on export profit at 20 per cent and phasing out of such incentive in is acceptable. However, he says, it is not clear if the present export related tax-free schemes will continue or not. He has mixed feelings on expenditure. Increase in defence, plan expenditure, rural development, power, roads are welcome steps.