Pro-growth budget looks to satisfy all sections of society and signals intent to contain expenses and keep deficit in check
The Finance Minister has done a good job in bringing out a budget that goes the extra mile in spurring growth within the present constraints of the economy. All sectors get support and there is a clear emphasis on providing an impetus to infrastructure such as roads, waterways, sea ports and airports, precursors to kick starting the economy.
FDI limits for insurance and defence have finally been raised to 49 per cent. The proposal that allows REIT’s for construction and housing clearly augurs well. The re-capitalisation of public sector banks in which retail investors can now participate is another move that will unlock capital and will bring in much needed funds. There are also provisions that set out to widen and deepen the debt markets through the availability of infrastructure bonds.
In his budget speech, the FM has spelt out specific measures to encourage entrepreneurs, small and medium enterprises to take on a frontline role in a developing economy, clearly signalling the move to unlock this latent potential.
Agriculture and Rural India too, get their rightful focus with multi allocations specifically targeting development in these areas. These measures are designed to contain rural migration to urban areas by balancing opportunities and creating alternate focal points for employment in the country.
Easing of Visa regulations and the development of specific tourism circuits with allocations targeted at preserving our heritage sites will also provide a boost to tourism and related services which are important cornerstones of the economy.
Higher budgetary funds for building infrastructure for medical education, engineering and management are welcome steps. Specifically, the announcement to set up All India Institutes of Medical Sciences (AIIMS) in Bengal, Andhra Pradesh, Purvanchal and Jharkhand, with the eventual intent to cover all States, will go some distance in bridging the supply demand gap for qualified medical personnel.
On the revenue side, the taxation regime especially with regard to direct taxes has been kept stable with efforts to expand the tax base. There is a greater emphasis on indirect taxation and a directional move towards GST. The arbitration and resolution mechanism to clear pending tax disputes is also being strengthened through the setting up of the settlement commission.
On containing expenditure and maximising governance, an expenditure management commission is being constituted to take stock of the situation. The creation of a digital India and access to government ministries through an E platform will ease transactional flow, making this process efficient and transparent.
On the social front, schemes that target to improve the lot of the girl child, senior citizens, the handicapped and projects for improved sanitation, the availability of electricity and clean water are indeed welcome steps and inclusionary.
On balance the FM has made his intent clear to reach out to all sections of society, balance growth, lower inflation and contain fiscal deficit. I would say it is a prudent budget.
– Malvinder Mohan Singh, Executive Chairman, Fortis Healthcare