Finance Minister Arun Jaitley’s Union budget 2017 will be remembered, not just for its date of presentation but its attempt to curb down the flow of black money from the economic ecosystem. Although, the Finance Minister might have missed out on a few topics of discussion and hence has received a mixed reaction for the same. Earlier today, Prime Minister Narendra Modi praised the budget presented by his government for the year 2017-18 and claimed that it would lead the country towards development. He said that the year’s budget was aimed at strengthening the poor in the country.
The Union Budget 2017 was tabled earlier today by Finance Minister Arun Jaitley in front of both the houses of Parliament. This year the Union Budget included both General and Railway Budget. Breaking away from tradition norms, the budget received mixed reactions from different people of the industry.
Here’s what Rohit Gera, Managing Director, Gera Developments & VP, CREDAI – Pune Metro had to say:
“On the whole, the budget has a number of positive aspects. Given all the allegations about populist budget in light of the upcoming state elections the government has shown tremendous focus and has proved the naysayers wrong by not providing a bunch of sops for the upcoming elections. The move to reduce the maximum gap on cash donations to political parties buy 90% to Rupees 2000 is also a welcome move.
The reduction of income tax for small and medium enterprises with the turnover of less than 50 crores to 25% is a positive move as is the reduction of tax for the sub 5 lakh segment. The impetus on infrastructure development with a large capital deployment for the same will reap benefits in the short as well as long term.
With regards to the real estate sector, there are a number of positives such as the reduction of holding period for long term capital gain as well as clarification on the date of tax in case of joint development and the increase in the period required to complete the projects for the sub 60 square meter segment. Unfortunately, the steps taken will not be enough to kick start the real estate sector which is one of the engines of the economy.
The announcement of according infrastructure status to affordable housing projects will truly only see a big impact if these lower cost funds are actually made available for acquisition of land. Without this, a large part of the funds required for the affordable segment for the construction are provided by the end consumer and large scale capital is not required once the land acquisition is completed and approvals are in place.
I wish, however, that more steps had been announced to curb the regeneration of black money. Now that the cash has come into the banks, it is critical that the process of regeneration is addressed. Without this, it is a matter of time before the cash economy flourishes again.”