Union Budget: Dialling ‘Make in India’

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Published: March 1, 2015 12:14:44 AM

Finance minister Arun Jaitley’s Budget presentation is a confidence-restoring document for India...

Sanjiv Goenka, Chairman, RP-Sanjiv Goenka Group

Finance minister Arun Jaitley’s Budget presentation is a confidence-restoring document for India, as also for the Indian corporate sector where many are looking for greater ease of doing business. This indeed is a Budget with a vision and one of the most noticeable in recent times.
There are two key highlights of the Budget — there is simplification of tax laws and there is predictability of the tax regime.

The finance minister has underlined the need to develop  infrastructure which had remained a weak spot in the development matrix. In the present Budget the investment on infrastructure will go up  by R70,000 crore. The tax-free infrastructure bonds and the National Infrastructure Finance Company will help garner financial resources for infrastructure development.The finance minister has made a special effort to introduce fiscal discipline. The Budget deficit has been restrained and will be brought down to 3% in three years. This will make it possible to check inflation and bring about the much-needed integration between fiscal and monetary policies.

Jaitley’s Budget this year has many far-reaching features. For instance, the corporate rate tax cut and the courageous abolition of wealth tax, as also monetisation of gold. Over the next four years, the rate of corporate taxation will be brought down to 25%. This is the rate that prevails in most Asian countries, including China, and will motivate foreign and domestic investors to invest in India.  It is important that GAAR has been postponed by two years and retrospective taxation will not be a practice.

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