Chambers caution states on wasteful spending of VDIS benefit

“VDIS collections have proved to be far better than those under all earlier schemes. Yet, the black money estimates being what they are, these collections do not cover even a fraction of the country’s unaccounted money,” said the Associated Chamber of Commerce and Industry of India (Assocham) spokesperson.

He added that the scheme should be continued. “More time and a free trial has to be given for it to bear full fruit,” the spokesperson said.

The chambers have also welcomed the rollback of the five per cent cut in plan expenditure which was announced a few months ago as a part of fiscal correction.

Federation of Indian Chambers of Commerce and Industry (Ficci) president K K Modi said: “The state governments should spend their share of the resource as quickly as possible in public works and social infrastructure which can arrest the slowdown in the economy by increasing the offtake of core sector products, such as cement and steel, and create forward and backward linkage.”

Modi added that Ficci and its state apex chambers would cooperate with the state governments across to initiate massive public works expenditure with efficiency and transparency. “States should immediately decide how they would develop the infrastructure, particularly the social sectors like health, education and family welfare,” the Ficci president said.

Confederation of Indian Industry (CII) spokesperson felt that the revenue secretary and his team worked very hard to fulfill the task and deserves to be commended.

The CII spokesperson further felt that the media campaign, which was very professionally designed and carried effective message, helped yield positive response and compliance.

Assocham also attributed the good response to low tax rates.“Since the tax rate was so low, total confidentiality assured and a mega publicity blitz was launched, much more money could come out. It will help bridge the fiscal deficit at a time of low yields in direct and indirect taxes, specially when the government has to bear the additional burden of salaries due to acceptance of pay commission recommendations,” the Assocham spokesperson said.

Ficci also felt that the government had been very professional in the manner it went about with the scheme, particularly, with issuing clarifications.