India Budget 2018
The FM has provided a panoptic flavor to the FY19 Union Budget. The admirable ‘All-in’ Budget has delivered beyond expectations in a bid to reinvigorate growth that is sustainable and equitable, leveraging fully on the available fiscal space.
In the backdrop of past reforms culminating into early green shoots for investments, a credible rise in allocation for infrastructure by 21,% accompanied by broadening of corporate tax relaxation for MSMEs, a chiseled focus on generating livelihood creation in agriculture and rural sectors via new Operation Green and National Health Protection schemes, incentives to enhance employment in labor intensive sectors of textile, leather and footwear will ensure a stronger consumption and investment impetus in FY19. In addition, the global economy led revival in exports will truly allow India’s growth to become multi-dimensional henceforth.
The fiscal strategy appears to be channelizing spending to sectors that have the potential to maximize backward and forward linkages in the economy through capacity enhancement and job creation. Notwithstanding the absence of fiscal consolidation in FY18 on account of GST implementation, the Government has committed to credible fiscal tightening in FY19 and to follow the path of fiscal prudence by accepting the recommendations of the FRBM Panel. In my view, the Budget transmits the right ‘economic signals’, and will definitely find favor among all economic stakeholders.
I would rate this Budget 9/10
Rana Kapoor is the MD & CEO of YES BANK