Budget 2012 is a lost opportunity for the economy: NASSCOM

by CXOtoday Staff    Mar 16, 2012

The body says that there is no focus on putting the economy on a high growth trajectory.

National Association of Software and Services Companies (NASSCOM) expressed its disappointment on the Union Budget Proposals 2012-13, terming the budget proposal as a lost opportunity for the economy.

“Budget 2012 is disappointing on various counts. There is no focus on putting the economy on a high growth trajectory; fiscal deficit reduction is through higher taxation, rather than expenditure management; there is no roadmap on implementation of DTC and GST; and also issues of tax simplification, litigation have not been addressed,” NASSCOM said in statement.

The industry body stated that the continuing uncertain business environment will be negative for investment and hence for growth as well.

“Equally important, given the current account deficit, there is need to provide a strategic thrust on high value exports; this aspect has been totally ignored. While the focus on infrastructure through various schemes is positive, the increase in indirect taxes both service tax and excise is a setback,” the release said.

For the USD 100 billion IT-BPO Sector, budget expectations largely focused on a simplified, consistent and credible policy environment that is implemented in letter and spirit. However, the fine print, some of which is still to be analyzed, has many provisions which appear retrograde, increasing discretionary powers and interpretation issues, according to NASSCOM.

The association said that it will be submitting a detailed post-budget memorandum on these issues and will seek the government’s intervention and support to build a conducive policy environment.