By GVK Reddy, Chairman, GVK group
This is an aggressive Budget to tackle fiscal deficit. It lays great emphasis on the development of rural India by making provisions for the rural employment scheme, roads and electrification of villages. Strengthening rural India will have strong impact on the overall economy in the coming years. The finance minister has also indicated that he would like to double the income in the hands of the farmer by 2020. He has also embarked upon an ambitious plan to bring 28.5 million hectares under irrigation. Resources have been earmarked in the Budget for implementing irrigation infrastructure.
I also welcome the FM’s statement that the government will issue guidelines for resolution of disputes and renegotiating of PPPs as this will help infrastructure developers to a great extent. Providing a window for renegotiation of concession agreements will go a long way in increasing the comfort level of developers. There is a great impetus given to the road sector.
Allocating Rs 25,000 crore for recapitalisation of banks is a very small amount when compared to the actual requirements, but it is a step in the right direction. The finance minister has made a positive statement that he will control the current account deficit to 3.5% of GDP in 2016-2017.
Investment in infrastructure is clearly investment for a sustainable economy. The Budget spells out some interesting propositions for the infrastructure sector and is one of the key highlights of the current government’s financial plan of action for the India.
The Budget has clearly been designed keeping in mind the rural distress, the need for infrastructure, need for employment and systematic up-gradation across all levels to bridge gaps between what we have already and what ideally should be. Strengthening “Rurban” (Rural-Urban) India is certain to have strong impact on the overall economy in the coming years.