Budget 2017 comes in the backdrop of a difficult situation post-demonetisation. The Finance Minister had an opportunity to reclaim fiscal credibility, take forward the reform agenda, regain community confidence, and secure sustainable long-term growth. He seems to have delivered on all these counts but execution of these proposals would remain the major challenge. Digital economy, rural, affordable housing (infra status given), and infrastructure received a big push. No mention of Universal Basic Income is a relief
Remaining committed to fiscal prudence, revenue deficit will go down in absolute terms to 1.9 per cent of GDP. Similarly, gross fiscal deficit is projected to be at 3.2 per cent (3.5 per cent in 2016-17).
Key notable announcements in the Budget speech include abolishing the FIPB, abolishing indirect transfer rules for foreigners, non-allowance of cash transactions above ₹3 lakh to curb cash transactions, cut in corporate tax rate for small companies (to 25 per cent from 30 per cent) with turnover up to ₹50 crore.
Allowance of MAT carry forward to 15 years from 10 years now and personal income tax benefits given to only the lowest tax bracket (₹2.5–5 lakh), where the income tax rate is cut to 5 per cent from 10 per cent now, are other major positives. The focus on NPL resolution and wilful defaulters is a welcome step.
All in all, a balanced Budget with no major negative surprises.