This year’s Budget, the first one after the heavily contested elections, is a litmus test for the new Government. Businesses, citizens, industries and investors were all hopeful of a positive turn for the economy. The announcements made today have been on the right track and are certainly a good indication of things to come.
Transparency, consistency and predictability with regard to taxation rules and policies are much needed. The Government has only reinstated this belief in its Budget. It has assured a stable, predictable tax regime boosting investments.
The Finance Minister also spoke of a high-level committee to be constituted by the Central Board of Direct Taxes to review all retrospective amendments. Life will also be easier for tax-payers now that residents can obtain an advance ruling for their income tax liability above a defined threshold.
Often, the processes for operating business ventures are complex, and, therefore, this budget has intervened to simplify this and help create a better landscape for burgeoning businesses. The introduction of Goods and Services Tax will help streamline tax administration, avoid harassment of businesses and ensure higher revenue collection. It is also great to hear that ₹10,000 crore has been set aside to enhance the ecosystem of start-ups and also to attract more venture capitalists for micro, medium and small enterprises.
It is heartening to see ₹500-crore initiatives such as Digital India being announced, which will eventually promote inclusive growth.
The Government has rightfully spoken about spending ₹7,060 crore for building 100 smart cities, aiding rapid urbanisation. Given that 60 per cent of the Indian rural population is unbanked, a time-bound programme to create bank accounts for every household in India is good news.
The introduction of uniform KYC norms for the financial sector is also a welcome move.
The writer is Kris Gopalakrishnan, Non-Executive Vice-Chairman, Infosys