Pradeep Jain, Chairman, Parsvnath Developers Limited
The Union Budget 2009-2010 ensures continuity of policy and resolve to fight the global slowdown. The focus was seen more on agriculture and infrastructure. It was a non event budget specifically for the real estate sector. However, there are certain announcements which will indirectly support the sector. The budget along with the railway budget will contribute to infrastructure development across the country. Impetus to help the rural and farm sector will generate demand for the manufacturing sector and will lead us back to 9% growth target. The budget, which is a spending budget, will help the country to re-energize and swiftly move back to the growth trajectory. We welcome the abolition of the Fringe Benefit Tax (FBT) and the roadmap laid for the implementation of the goods and services tax (GST) by 2010.
The budget provides stimulus worth Rs 2000 crore to the rural housing which is certainly a welcome move as it will complement our efforts of providing good quality housing in rural India. Refinancing 60% commercial bank loans for public private partnership (PPP) projects in critical sectors over the next fifteen to eighteen months by India Infrastructure Finance Company Ltd's (IIFCL) would infuse liquidity in the system and boost the infrastructure development. Increase in allocation under Jawaharlal Nehru National Urban Renewal Mission (JNNURM) by 87 per cent to Rs.12, 887 crore would be instrumental in reviving the urban infrastructure. At the same time, total excise duty exemption from pre fabricated concrete slabs is another welcome move as it will help reduce the cost of construction in projects utilizing pre fabricated materials.
Overall, the budget announced today takes care of the economic needs of the country and aims at revival of the economic growth in the long run.