The Karnataka State Budget evoked criticism from industry bodies.
A number of industry bodies are not happy with the budget, as no specific proposals are made for boosting industries, particulry in the face of sluggish economic growth.
The Federation of Karnataka Chambers of Commerce and Industry (FKCCI) remarked that no impetus has been given to trade and industry and that they have not been favourably considered in the budget.
Criticising the announcements made by Chief Minister Jagadish Shettar, the Confederation of Indian Industries (CII) said that the CM made no major announcements and made no promises.
‘’The government wants to encourage the private sector. The state welcomes public-private participation and expects the economy to grow at 8.9 per next fiscal. But it has failed to divulge more information on how his government proposes to act on these lines’’, said Confederation of Indian Industries state chairman L Krishnan.
Calling it a ‘budget to woo all’, he said the state budget was good in its intention considering the current political scenario.
He added that given the present economic scenario, the government has not spelt out specific steps. In energy sector, budgetary measures are welcome as they seek to achieve inclusiveness. But at the same time, the government has to ensure that while new projects are announced, they get commissioned without any delay, he said.
‘’The economic growth of the state is pegged at 5.9 per cent for the year 2012-13 which is lower than the previous year’s 6.5 per cent. This is a great cause for worry and we hope that this trend will be reversed soon,” said Bangalore Chamber of Commerce and Industry (BCIC) senior vice-president H V Harish.
He, however, added that despite the sluggish economic growth being witnessed by the state in 2012-13, there has been an upward trend in the state’s tax revenue due to increase in tax rates and better compliance.
He also said that the allocation of `1,300 crore to the Transport Department is grossly inadequate for the development of urban and rural transport and he is not sure how much of the Central projects for Urban Development is being leveraged to effect improvement.
While the state claims the Global Investors Meet to be a huge success, the delay in announcement of the new Industrial Policy is certainly a setback to trade and industry.
Similarly, the allocation of Rs 10 crore for Tier-II and Tier-III towns for industrial area development appears more of a token gesture than a real benefit, he said.
He also criticised the Rs 10 crore allocation for aerospace research and development.