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Thrust on growth Barring a few minor benefits that accrued to sectors by way of minor tinkering with tariffs, the overall thrust of the Finance Bill tends towards broader economic growth.

Mumbai , Feb. 28

No major surprises, but no major disappointments either - that was the initial reaction of a section of the corporate sector moments after the Finance Minister, Mr P. Chidambaram, finished his speech.

From a macro-economic perspective the Budget appears very positive, said Mr Prasad Menon, Managing Director of Tata Chemicals.

"Targeting 10 per cent growth and voicing a hope to put in place GST by 2010 are very positive moves."

The few corporate chiefs who chose the BCCI venue for Budget viewing said that the Finance Bill 2006-07 sustained the growth momentum.

Barring a few minor benefits that accrued to sectors by way of minor tinkering with tariffs, the overall thrust of the Finance Bill tends towards broader economic growth.

There were minor changes for the corporate sector - like the changes in fringe benefit tax and widening of service tax net.

Sectors such as textiles, power, infrastructure, tourism, steel, automobiles, and gem and jewellery have got minor gains from the Budget.

The Budget was likened to a vision document of the Government. "Just as the corporate sector works on a long-term plan, the Budget is aiming to do the same," Mr Menon said.

Among the negatives cited were: increase in minimum alternate tax (MAT) to 10 per cent from 7.5 per cent of book profits and increase in service tax rate from 10 per cent to 12 per cent.

Corporate reactions that poured in were largely appreciative of the direction of the Budget.

"It provides the necessary traction to taking India's GDP growth to an 8-10 per cent clip per annum," said Mr Kumar Mangalam Birla, Chairman of the Aditya Birla group.

He added that it was a "compassionate Budget" as it fosters human dimension of development with a clear focus on the rural sector.

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