The Budget is a game changer and continues to rightly focus on the rural, agriculture and infrastructure sectors, to give a boost to the formal economy. The planned investment in these sectors will not only create much needed jobs in the country but also spur consumer spending and economic growth. The fiscal deficit too has been contained very well.

The continued focus on ease of doing business, with measures such as abolishing FIPB, Model law on contract farming, simplification of labour laws under four areas — wages, industrial relation, social security and welfare and safety — augurs well for the economy. Major income tax relief in the lowest bracket is laudable as it will bring back consumer confidence and boost domestic consumption.

The measures to encourage the manufacturing sector are commendable. Rewarding MSMEs by reducing rate of income tax will strengthen ‘Make in India.’ The proposal to set up a dairy processing fund will benefit food processing while increased allocation to schemes such as MSIPS will help the electronics sector. The rural sector gets a fillip with increased allocation to MGNREGA. The agenda to ‘transform, energise and clean India’ is noteworthy as also the commitment to lift 1 crore people out of poverty by 2019. The steps to promote the digital economy, post demonetisation, will support the formal economy.

Overall, this is a good Budget. Adherence to fiscal discipline, with emphasis on growth and development, is a key aspect.

Besides, there is focus on timely implementation and execution effective April 1, 2017, as the Budget has been brought forward.

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