At a meeting convened by the CII southern region at Chennai to comment on the budget, industry captains felt that revenue projections made in the budget were too optimistic and no logical explanation has been given as to how the figures have been arrived at.

The intention to boost the capital market by giving concessions to the small investor in mutual funds and US-64 scheme of UTI will go some way to boost the sentiment of the market. But no long-term goals have been set and other concessions in excise and customs are unlikely to give a boost to the recession-hit economy, it is generally felt. The concession on loans for the Housing sector will revive demands in the steel and cement sectorbut steel industry owners feel that input costs will increase because of excise rationalisation and the benefits accruing to the core sector may in fact level off and the unorganised sector may reap more joy out the situation. Meanwhile, various chambers of commerce and industry in Chennai have reacted differently to the Union Budget for 1999-2000. The Southern India Chamber of Commerce and Industry president C N Gangadharan terms it ``realistic and pragmatic''. For the Andhra Chamber president S Seetharamaiah it is a hard budget but not harsh. The Sindhi Chamber of Commerce president J C Prakash says the budget is `non-controversial and placid''.

The Madras Chamber of Commerce and Industry president Mallika Srinivasan is concerned about the reversal of the ``trend to reduce taxes and increase revenue by widening tax base.''

However, the chambers feel that the major concern of the finance minister Yaswant Sinha will be containment of fiscal deficit (from 6.5 per cent to 4.4 per cent). Gangadharan saysthis will bring about stability in the long run. But in his anxiety to contain the deficits the finance Minister has not provided adequate measures for stepping up industrial production and growth and revival of the economy, according to Seetharamaih. The reduction of the excise and customs slab rates is a good beginning. ``In this context the proposed surcharge should be confined to tariff items which get relief by the revision of the slab'', he adds.

The chamber chiefs are unanimous in welcoming the measures to revive the capital market but are critical of the surcharge on income tax and especially on the corporate sector. Another welcome feature is the availability of export credit at international rates.

Mallika Srinivasan finds a boost to exports of value added agro-products in the initiatives for strengthening the post harvest management of agro-produces. However she calls for effective monitoring and review of progress of the proposed large investments for rural development.