Growth-oriented Budget: Chandigarh Traders

Chandigarh, July 23

Union Finance Minister Nirmala Sitharaman today presented the Budget 2024-25 in Parliament, but the budget allocation for the UT remained the same as in Interim Budget at Rs 6,513.62 crore.

With presentation of the Union Budget, the restrictions on expenditure for new projects have been removed and the Municipal Corporation will get regular quarterly grants.

Welcoming the Budget, the Chandigarh Beopar Mandal (CBM) termed it as “growth-oriented” for the country. Mandal president Charanjiv Singh and chairman Sat Pal Gupta appreciated the various relief measures announced in the income tax slabs, standard deduction and other concessions, which will result in an increase in the spending power of common man, thus benefiting retailers and traders of the city. The simplification of GST procedures, as promised, will also be a welcome step, they added.

Spokesperson of the CBM Diwakar Sahoonja stated that while the budget had some positive aspects, it lacked in specific relief measures for small and medium businesses. The CBM urged the government to consider the needs of such businesses that got burdened due to inflation.

Saying that the budget emphasises overall economic growth, Naveen Manglani, vice-president, Chamber of Chandigarh Industries, added, “The increase in long-term and short-term capital gains, particularly in real estate without indexation, could negatively affect investments in the equity and real estate sectors in the short term.”

A significant deduction of House Rent Allowance (HRA) in the old income tax (I-T) regime discourages the salaried class from adopting the new regime, he said. Additional deductions beyond the standard deduction like HRA in the new regime could further enhance its appeal, house rental being the basic and major expense, he added.

“An increase in the limits of MUDRA loans will benefits micro, small and medium enterprises (MSMEs),” he said.

Vinod Vashisht, convener, City Forum of Residents Welfare Organisations (CFORWO), termed the budget lopsided. “An empty budget for the middle

class. The government is heading towards snatching away any available art of tax planning at the hands of middle class by shelling taxes on them,” he said.

PGI gets Rs 2,200 cr

The PGI has got Rs 2,200 crore in the Union Budget 2024-25, which is Rs 276.90 crore and Rs 77 crore more than last year’s budget estimates and revised budget estimates, respectively.

Small, medium ventures will grow

“With facilitation of working capital needs, food irradiation units and e-commerce export hubs, the Central Government is laying a robust foundation for MSMEs to thrive. These measures will empower small and medium enterprises to grow and compete globally. The introduction of a comprehensive credit guarantee scheme, coupled with significant provisions for long-term interest-free loans to states, underscores a commitment to fostering an aspirational India,” said AS Chauhan, Chairman, Chandigarh Branch of ICAI.

Cut in fiscal deficit good step

“The reduction in the fiscal deficit target is a commendable step, which paves the way for fiscal discipline and sustainable economic growth. The abolition of the angel tax is a landmark decision. Startups are the backbone of innovation in India and this step removes a significant barrier for them and encourages investment. The government’s commitment to enhancing connectivity and building resilient infrastructure will not only drive steel consumption,” said Kapil Sabharwal, former chairman.

Capital gain hike to hit investment

The increase in long-term and short-term capital gain, particularly in real estate without indexation, could negatively affect investments in equity and real estate sectors in short term. — Naveen Manglani, vice-president, Chamber of Industries