Brilliant job by Finance Minister: ITC

India’s largest cigarette manufacturer ITC Ltd, whose stocks soared high after the Union Budget proposed no new duties on tobacco makers, lauded the general budget presented by Union Finance Minister Pranab Mukherjee.

Y C Deveshwar, chairman, ITC Ltd, said the “Finance Minister has done a brilliant job of balancing the challenges confronting the economy and the opportunities that can ignite faster growth and progress of the country.”

He has sought to consolidate the fiscal deficit through growth stimulated by moderation in taxes thereby encouraging savings and investment,” he said.

The measures proposed in the budget to expand the tax base would also provide a more robust source of future revenue accretion and competitiveness of the Indian economy, he said.

“In addition, the Finance Minister has provided a strong impetus to inclusive growth by significantly investing in the long term drivers of the economy such as education, skill development, infrastructure and development of the rural economy,” he said.

The share market has responded positively to the Union Budget which focused more on social sector spending and projected a 9 percent growth in the next fiscal.

The budget provisions boosted shares of engineering and construction firm Larsen and Toubro, auto maker Maruti Suzuki and cigarette maker ITC.

The Union Budget 2011-12 proposes to raise the FII limit for investment in corporate bonds to enhance the flow of funds to the infrastructure sector, boosting shares of L & T.

ITC shares rose 8.2 percent to Rs 169 while Maruti rose 3.1 at Rs 206.70, since their excise duties remained unchanged.

The benchmark 30-share index, BSE Sensex, ended up 0.69 percent at 17,823.40 points.