Budget has clearly spelt out the roadmap to enable the revival of manufacturing, create jobs and promote inclusive growth. Ease of doing business requires a predictable and stable framework of policies
The Budget this year was one of the most anticipated events, as everyone wanted to know how the government was going to translate its electoral promises into reality. I, for one, thought that it would be impossible for the finance minister to meet the prevailing very high expectations, and many people would feel disappointed at the end of his speech. Let me say that I was wrong.
The Budget has clearly spelt out the roadmap to enable the revival of manufacturing, create jobs and promote inclusive growth. Ease of doing business requires a predictable and stable framework of policies. That has been created. The GST would be rolled out from April 1, 2016. So we now have a definite date. The fiscal deficit target for this year will be met and the future targets look very reasonable. The building of infrastructure building would be facilitated by a more pragmatic PPP model, and a new Dispute Resolution Act relating to government contracts.
Assuming this happens quickly and effectively, the inflows of private capital could be huge. The proposal to avoid any delay in starting a business by laying down guidelines for doing this would be path breaking. Electronic clearances, where required, on a single portal would reduce harassment. The capital markets would be encouraged by the pass through proposal. The rates of corporate tax would be brought down from 30% to 25% from 2016 to 2019, while exemptions would be reduced, is something the industry has wanted for long.
The direct transfer of subsidies to the correct beneficiaries would not only reduce waste and leaks and consequently the outlays on subsidies, but would also bring more people into the active financial system. The Jan Dhan Yojana scheme would also facilitate the highly desirable social security net for the poor.
All in all, an excellent Budget.
The real challenge will be ensuring that all the benefits and ideas are actually implemented effectively at ground level.