Hinduja hails budget as balanced and reassuring

Chennai: Chairman of the Hinduja Group S P Hinduja today lauded Finance Minister Pranab Mukherjee for presenting a balanced and reassuring budget in the backdrop of the "looming political uncertainty, the Eurozone crisis and slowdown in the world-wide economic growth."

"The intent of adhering to fiscal discipline to tame inflation and strike a healthy trade-off between growth and equity is clear. The reduction of fiscal deficit from 5.9 per cent to 5.1 cent and a new FRBM framework will help the government achieve fiscal consolidation in the medium term," he said in a statement here.

This would lead to a more liberal monetary policy and rising investment, he said. "The proposed Rajiv Gandhi Equity Savings Scheme to boost retail investors participation, divestment of government stake in PSUs and allowing QFIs in debt were the positives for the capital market," he said.

Higher allocation of funds for infrastructure and duty exemptions for thermal power companies, coal and LNG will bridge the gap in infrastructure needs to cater to the needs of the manufacturing industry and enhance job opportunities, he said adding agriculture infrastructure had received top priority through viability gap funding schemes.