The Union Budget 2017-18 continued the sentiment of containing inflation and fiscal deficit, and driving tax compliance, digital initiatives and long-term growth that the crucial economic developments, such as the upcoming rollout of Goods and Services Tax (GST), announcement of demonetisation and several government initiatives have started.

The impetus provided to agricultural productivity, farmer benefits, MNREGA and infrastructure is expected to boost consumption, especially in the rural sector. It will also help generate employment, essential to leverage the demographic dividend of our nation, and result in an increase in disposable income in the hands of the people.

The proposed reduction in present rate of income tax from 10 per cent to 5 per cent for the first slab of income from ₹2.5 lakh to ₹5 lakh is a welcome move to reduce the tax burden on individuals, especially post-demonetisation. We hope that this initiative of reducing taxes along with use of big data analytics by the tax authorities will result in increase of the tax payer base.

Implementation of GST coupled with the thrust given to digitisation of economy will also lead to better compliance and structure, resulting in a level playing field for organised players.

The proposed GST slab rates, while providing revenue neutrality, should also ensure minimal inflation assuring a long-term boost for the economy.

A forward-looking and pragmatic Budget, with focus on a broad-based growth will augur well for the consumer companies and is likely to provide the much required stimulus for reigniting growth after a slump caused by demonetisation.

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