H F Khorakiwala, President Federation of Indian Chambers of Commerce and Industry
The finance minister has laid emphasis on the social sector in the 2007-08 Budget. It is a terrific Budget which focuses on the health, education and agriculture sectors. He has also focused on irrigation and ground water management schemes.
GDP has risen from 7 per cent to 9.2 per cent. I would like to compliment the finance minister for presenting a good Budget but I would like to remind him that good governance is equally necessary so that funds are better utilised.
On the industrial sector, I would say that the finance minister has missed a great opportunity by not addressing the demands of the industrial sector. He has given concessions to food processing sector. We welcome that but by putting adding another 1 per cent cess on educational tax he has burdened the industry. He has also raised the dividend tax from 12.5 to 15 per cent and also the fringe benefits given to management level officers.