NEW DELHI, June 1: Finance minister Yashwant Sinha today expressed confidence that the tax concessions for the infrastructure sector and industry would enable them to "pick up pace" and help improve the investment climate. "I have done whatever I had to do and I hope the industry will respond in the same spirit to match the initiative taken by the government," he stressed.Talking to reporters at his Parliament house office after presenting the general budget in the Lok Sabha, Sinha described his maiden budget as growth-oriented, non-inflationary and tax-payer friendly. He said his proposals also focussed attention on development of agriculture, rural areas and small scale industries.
Responding to a question, the finance minister said the increase in petrol prices would have no cascading effect on the economy. He pointed out that there has been no increase in diesel prices.
He said the special schemes for non-resident Indians would help give a substantial boost to foreign investments.
Sinha said theGDP growth was expected to be around6.5 per cent to seven per cent by the end of March, 1999. Sinha said the US sanctions announced in the wake of the Pokharan tests were "overplayed and over-estimated" and asserted that his government was quite confident of facing any such challenge.
Talking to reporters at Parliament House soon after presenting the general budget, he said, till now the US has not defined the sanctions". "First, they have to define the sanctions,"he said, adding "any step in this direction will take at least 12 to 18 months to impact on our economy."We are in no danger immediately. India is not Pakistan. We are quite confident of meeting any challenge, he said.
Meanwhile, prime minister Atal Behari Vajpayee has said that the Budget would give impetus to both agriculture and industry. Stating that the Budget would encourage flow of domestic and foreign investment, Vajpayee said non-resident Indians would be able to bring in money easily and invest in greenfield projects.
"Ruraldevelopment will receive encouragement and jobs will be created. Never before has so much monetary benefit been given," he said in reaction to the budget.
Vajpayee said the government inherited a dismal economy and the general impression was that the budget burden would be heavy. But, the government has made efforts to ensure that the budget burden is borne only by those who can bear it, he said.
"I hope this development oriented budget will put the nation's economy back on the rails and boost growth," he said. He also maintained that higher outlay has been made for education and added that government would fulfill its promise to provide housing facilities to the deserving.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
