Before presenting Second Union Budget, finance minister Arun Jaitley held a pre-budget meet with industry and trade groups on Tuesday. They have sought steps to revive economic growth and kick start investments, a more conducive environment to do business.   

Addressing representatives of industry lobby groups who met him with their charter of demands for the coming budget, Jaitley said while recent reforms in insurance, coal and easing rules for land acquisition will help the economy, but still there is a long distance to cover.

Industry sought steps to speed up infrastructure projects, encourage investments in sector like tax breaks for investments in infrastructure bonds. CII suggested a model for infrastructure development where public sector funds and builds infrastructure and private sector gets to run it and share profits. The industry also wanted changes in tax collection system to make it non-adversarial and conducive for the industry and economy to flourish. CII also asked for reduction in Minimum Alternative Tax be brought down to 10 per cent from 18.5 per cent at present.

FICCI President Jyotsna Suri had urged Jaitley to rationalize tax structure and also help bring down the cost of capital through reduction in interest rates.

Jaitley on his part told the heads of industry bodies that the government believes Budget is not needed to announce policy decisions, as key decisions are being taken by the government round the year. He also informed industry that the government will aim to revive growth in the upcoming budget as it will help in improving tax buoyancy.
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