The first budget of the NDA Government lays emphasis on broad policy indicators and directions for the Indian economy.
The focus on fiscal consolidation and promoting foreign direct investment in the Defence and insurance sectors are also positive for future growth.
The Finance Minister also indicated the need to revive manufacturing and the infrastructure sector.
The benefit of investment allowance on investment in new plant and machinery has been proposed to be extended for two more years till 2017. These are the indicators of the Government’s vision to broad base growth in the economy and also give a much needed push to the ailing infrastructure sector.
Measures such as increasing Tax/ GDP ratio, better tax administration by leveraging information technology also will help in augmenting receipt side of the budget.
Road map on GST and the Government’s endeavour to implement this in near future is encouraging as this is long overdue.
The broad based announcement on a tax-friendly regime and also resolving tax litigations faster is a welcome step. It’s encouraging also to see the Government focus on productivity and governance.
Some tax relief to individual tax payers by enhancing basic exemption limit and also increasing limit under Sec 80C from will help to create more cash for consumer spend.