The CEO of Epic Research Mr. Mustafa Nadeem has welcomed the Union Budget 2017 calling it a budget for the ‘lower middle class’ families of India. “Budget has been given thumbs up by markets and corporate. It is budget for ‘Gramin’ and ‘lower middle class’ which forms majority of India. Their is lot to cheers about this budget with some disappointments but overall direction is clear and if implemented will give major boost to spending and shaping up of rural economy,” he said.
However, he asked for a measured approach towards implementation and said that if the fiscal responsibility is kept intact it will be a major boost for the markets. “All this has been done keeping fiscal responsibility intact is a big boost for the markets. Some of the notable highlights like lowering tax rate to 5% for income up to Rs. 5 lacs will increase the tax net, also the reduction of tax by 5% for corporate with annual turnover of less than 50 crores is again a positive,” Mr. Nadeem added.
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He also underlined the importance of allocation of MNREGA for the poor, especially after the demonetisation move. He said, “The thrust on rural economy by increasing allocation to MNREGA and increasing rural spending will reduce the demonetization impact for poor.”
He also praised the move of aboliting FIPB and called it a plus for the economy. He said, “The abolition of FIPB is a big plus for economy and clear signal for investors to invest and make in India.Not tinkering with LTCG is again a relief for market given the sign of changes in same from PM. The fiscal deficit target of 3.2% of GDP is very welcoming but is hard to maintain and may be extended at later stage.”